Australian daily Perth Now said Khoo Lay Foon, a former prostitute herself, had arranged for a flight ticket to Western Australia for her friend in December 2015.
Upon her arrival, however, the woman was taken to a brothel and allegedly told that she would have to work to repay Khoo for the A$1,900 spent on travel arrangements.
According to the report, the woman spent a week at the brothel before going to the police. Police said her passport was also confiscated, and that she was told she would not get it back until she had paid her debt to Khoo.
Prosecutor Lisa Boston was quoted as saying that Khoo had trapped her friend into working as a prostitute in order to make money from her.
Boston also cited a text message Khoo had allegedly sent to the brothel owner, telling the “lady boss” about her “young and very pretty” friend.
However, Khoo disputed her friend’s account, telling police that the woman had asked to be taken to the brothel.
She allegedly said her friend had run away from Malaysia because she owed money to loan sharks.
She also denied that she had confiscated the woman’s passport and deceived her about her stay.
The report said Khoo is believed to have worked as a prostitute for three months after moving to Western Australia in 2015. She quit after getting a boyfriend but is said to have helped women move to Australia to work at brothels there.