Mogumudi Kiran produced few films in Telugu and lost money. He moved to USA in 2015 with family and then to pay off loans initiated a prostitution house in Chicago. He targeted big shots and common people interested to spend a night with actors, anchors.
He called some of the anchors, actresses to Chicago and elsewhere in US in the name of concerts, Telugu events. There he trapped them using his wife Chandrakala. She used to take these actresses who were struggling around the city, buy them clothes, have dinners and then take some skimpy images of them.
Using those images they used to drag some into their scheme. They have to sleep with any willing person for a fixed charge. The actress or anchor would make some 40% and then they would get 60% out of the money. This arrangement worked fine with some willing actresses and anchors. But some revolted and they started pressuring them, blackmailing them and those who are need of money fell into their trap fully.
US Immigration officials found out that Mogumudi Kiran has been living in USA even though his Visa expired. They tracked his activities and then busted this racket. After 2 years of investigation and interrogation, the couple pleaded guilty and they are looking at life imprisonment up to 34 years.