3 Seized on Extortion Charges : Accused of Arson, Poison-Pen Stories in Koreatown

The publisher of a Koreatown newspaper, whom police describe as a leader of an extortion gang whose practices ranged from poison-pen journalism to arson, has been arrested on multiple criminal counts, authorities announced Thursday.

The arrest of 28-year-old Tae Il Yi, publisher of California Peace News, and two of his alleged “soldiers” represents “a beginning” in efforts to combat extortion rings operating in the Korean immigrant community, police said.

Police say they believe that several extortion rackets are operating in the Korean community, but investigators have been frustrated in gaining cooperation from the victims.

“The Korean community is very close-knit. They like to handle things internally,” Police Capt. Keith D. Bushey explained at a news conference. “Sometimes they suffer in silence.”

Several Counts

Yi, along with Cha Chi Ya Hong, 21, and Nuumoto Leuto, 20, were arrested Wednesday and have been charged by the district attorney’s office with extortion and arson. They are being held in County Jail pending arraignment.

The arrests followed a six-month investigation linking Yi and his alleged gang members to three incidents of arson against Korean-owned businesses, with property damage estimated at $100,000, police said. The incidents occurred within the last year, police said.

A fourth incident, police said, involved vandalism against a car dealer who sought to mollify Yi by providing him with both cash payments and a 1988 Mercedes-Benz 420 SEL. The car, valued at $50,000, was recovered at Yi’s residence.

The car dealer’s business was vandalized, Detective Ray Futami said, because “one time he hesitated” on making the alleged extortion payments.

Publishing Enterprise

Police said their six-month investigation also revealed Yi used strong-arm tactics in his publishing enterprise. Business owners were forced to buy advertising for $300 to $500, Futami said, to avoid the publication of “embarrassing articles related to their business activities.”

Yi’s California Peace News was described by investigators as “crudely printed and sporadically published and distributed.”

In one instance, Futami said, a business owner who agreed to buy advertising in Yi’s paper was later solicited for payments “for thousands of dollars.” After he hesitated, his business was set afire, Futami said.

People who refused to buy advertising often were less concerned about negative publicity than Yi’s menacing manner, Futami said.

“They were afraid of him,” he said.

Implied threats of physical violence were commonplace, Futami said.

Detectives said they believe other Koreatown businesses have been victimized by Yi’s alleged gang or other extortion rackets, and police have asked for public assistance in their investigation. The investigation so far has indicated that Yi’s gang extorted money and property valued at $94,700, police said.