Reasons they gave for this RCMP operation and the way I see it:
Human smuggling:
Absolutely nonsense. Vast majority of Korean MMs come here on their own free will.
Sexual exploitation:
See above
Under age MMs:
If there are any minors involved in this business, they aren't Asian. You'd be lucky to find any Asian girl under 25. White girls are a totally different story, they are the ones that need rescuing from their pimps who beat and abuse them.
Money laundering:
Only Asian agencies launder money? How about the income that non Asian agencies earn? Not transferred out of the country doesn't mean their money isn't also laundered.
Most-likely it is too many girls coming in using student visa loophole. When you get too big, they will look into you. If you do everything 100% lawful, then no problem.
I'm going to throw out some speculation: Competition from the non-Asian agencies.
For a long time before the bust, on the gweilo boards several non-Asian agencies were (and still are) very vocal about their dislike for the Asian agencies. Over the past 3-4 years, the gweilo boards have gone from 90% white girl reviews to now around 80% Asian girl reviews. The market has changed and the old agencies didn't like this. Read more into the specifics of their complaints and they don't like the $140hh pricing which is lower than the old agencies, business is down with several big agencies since closing and there are open claims about the Asian agencies operating with sex slaves and underaged girls. But from all this the only thing we know to be true is that Asian agencies have dramatically taken up large market share while spending less on advertising than the non-Asian agencies.
Adding to this is that several Asian agencies in Markham that have garages in service apartments and long term stay hotels have been receiving anonymous complaints in recent months and forced these garages to move. The surprise here is that the service apartments and hotels all know about the Asian agencies but didn't care because it was an occupied paying room. It was corporate head office HQ that sent the message after receiving ongoing anonymous complaints.
Again, this is just speculation. But after the bust was announced there were a lot of non-Asian agency owners publicly cheering on the gweilo forums.