Times of India
February 4, 2000

Reddy, son indicted in US

OAKLAND: A wealthy Indian landlord and his son have been indicted on charges that they conspired to illegally bring young women from India to San Francisco to serve as cheap labour or sex slaves, their lawyers have said.

Lakireddy Bali Reddy, 62, and his 30-year-old son, Vijay Lakireddy, remained free on bail Tuesday and are to appear in Oakland federal court Monday to be arraigned on the charges listed in the indictment. ``Reddy will appear in court Monday and plead not guilty,'' his attorney, Ted Cassman, told reporters after the indictment was returned.

Reddy and his son allegedly falsified visa applications to import young men and women from Velvadam in South India. Vijay Reddy operates a Berkeley company named Active Tech Solutions, and the immigrants were brought to California on pretext that they were skilled workers needed by the company, according to the US Immigration and Naturalization Service (INS).

Berkeley police say Active Tech was being used as a facade and that most Indian immigrants were put to work in low-paying jobs at Reddy's restaurants or rental properties. Among the eight counts listed in the indictment issued by a federal grand jury Tuesday were charges Reddy transported minors for illegal sexual activity and imported and harboured aliens for immoral purposes.

Berkeley police said Tuesday they found Viagra bearing Reddy's name in a Berkeley apartment he visited with two teenage Indian girls he is accused of having sex with.

The federal charges list yet-to-be identified conspirators and take the place of state criminal charges filed against Reddy and his son. Conviction on all charges would make Reddy eligible for a maximum sentence of 70 years in prison and $1 million in fines. The charges against Lakireddy carry maximum penalties of 20 years in prison and a $750,000 fine.

Reddy owns a real estate business bearing his name, more than 1,000 apartment units, and two restaurants named Pasand. His assets are estimated Friday at over $50 million. The case developed after Sitha Vemireddy, 17, died of carbon monoxide poisoning in a Berkeley apartment owned by Reddy. Sitha Vemireddy and her 15-year-old sister were found unconscious in the apartment the day before thanksgiving. Sitha died, but her sister recovered. The poisonings were ruled as an accident caused by a blocked heater vent.

Sitha's sister told investigators that she was given to Reddy at age 12 by her parents and that their sexual relationship continued after she and her sibling came to the US in August.

A woman who lived in the apartment with the sisters has also told police she was 14 when she was sold to Reddy, who brought her to California. The roommate claimed she saw Reddy have sex with Sitha and her sister. (AFP)