A Flushing massage parlor owner and nine alleged co-defendants have been indicted on charges stemming from what Suffolk County prosecutors describe as a large-scale prostitution, illegal massage and money laundering enterprise that operated across Suffolk County and Queens and allegedly generated more than $1 million in illicit proceeds.
Suffolk County District Attorney Raymond Tierney announced Thursday that a grand jury indicted 10 individuals and four corporations following a long-term, multi-agency investigation into four massage parlors that authorities allege were used as fronts for prostitution between February 2025 and June 2026.
According to prosecutors, 59-year-old Xiaolan Gong, of Flushing, owned and operated Long Island Green Apple Spa Inc., Lavender Spa Salon Inc., Huntington Spa NY Inc., and 192 Foot Spa Inc. Investigators allege the businesses offered unlicensed massages and sexual services in exchange for cash while disguising themselves as legitimate massage establishments.
Authorities allege eight female co-defendants provided unlicensed massages and repeatedly offered to perform sexual acts for undercover law enforcement officers during the investigation. Prosecutors also allege Gong and co-defendant Yazhi Lyu submitted false employment registration documents to the New York State Department of Labor.
The only male defendant, Xiaoyi Liu, is accused of depositing money into a business bank account, receiving funds from Gong, and transporting female workers to the massage parlors when Gong was away.
Prosecutors allege customers were encouraged to pay in cash to conceal the true nature and volume of the businesses’ transactions. Investigators claim the defendants collectively generated more than $1 million and laundered proceeds through mortgage payments on two residences and a brokerage investment account. Authorities seized money from multiple bank accounts, sought to freeze two properties, and recovered additional evidence, including cash and gold bars, while executing search warrants at four massage parlors and four residences on June 23.
Gong, Xiaofang Cao, Meilan Zhou, Yuping Cheng, Shan Shan Gong, Yazhi Lyu and Xiaoyi Liu all face a top charge of Enterprise Corruption, a Class B felony. If convicted of the top count, each faces up to 8⅓ to 25 years in prison. Xiaoxia Chen, Xiaomei Sun and Dongmei Yu face top charges of Unauthorized Practice of a Profession, a Class E felony, which carries a potential sentence of 1⅓ to 4 years in prison.
The Enterprise Corruption defendants were arraigned June 24 before Supreme Court Justice John B. Collins. Gong was remanded, while several co-defendants were ordered held on bail. The remaining three defendants charged with Unauthorized Practice of a Profession were released under supervised release. Most defendants are scheduled to return to court on Aug. 19, while Chen, Sun and Yu are due back Aug. 21.
As with all criminal cases, the charges are allegations, and all defendants are presumed innocent unless and until proven guilty in court.
Photo: SCDA.
