Posted on: July 01, 2026 08:30 AM

Share : Facebook Twitter Email Whatsapp

Massage parlor owner and nine co defendants indicted for operating prostitution ring and illegal massage business enterprise

Suffolk County District Attorney Raymond A. Tierney today announced the indictment of 10 defendants and four corporate defendants, following a long-term, multi-agency investigation led by the Suffolk County District Attorney’s Office, for the defendants’ alleged participation in a large-scale prostitution ring and illegal massage parlor enterprise operation throughout Suffolk County and Queens County, from February 2025 to June 2026. The four corporations indicted are Long Island Green Apple Spa Inc., Lavender Spa Salon Inc., Huntington Spa NY, Inc., all located within the Town of Huntington, and 192 Foot Spa Inc., located in Flushing, Queens.

“This long-term investigation exposed an alleged sophisticated criminal network that generated over one million dollars in illicit proceeds, all while hiding in plain sight behind the doors of four massage parlors disguised as legitimate businesses,” said District Attorney Tierney. “The defendants allegedly built a criminal enterprise with a coordinated money laundering scheme designed to conceal their profits. My office will continue to work with our local, state, and federal law enforcement partners to dismantle operations that prey upon our communities.”

“These defendants allegedly exploited vulnerable individuals, turned area businesses into fronts for prostitution and money laundering, and eroded the quality of life for residents who expect safe, legitimate enterprises in their communities,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Pete Gizas. “HSI New York is steadfast in our commitment to collaborate with our indispensable state and local partners to disrupt these illicit operations and protect the well-being of our neighborhoods and the public.”

“Behind the appearance of legitimate businesses was a criminal enterprise that generated more than $1 million through prostitution and illegal massages,” said Suffolk County Police Commissioner Kevin Catalina. “This type of deception has no place in our communities, and we will continue to work with our law enforcement partners to identify and dismantle these operations.”

“The Suffolk County Sheriff’s Office remains committed to working alongside our law enforcement partners to shut down these illegal operations,” said Suffolk County Sheriff Errol D. Toulon, Jr. “We thank all of the investigators whose dedication and collaboration led to these arrests. Criminal enterprises such as these have no place in our communities, and we will continue to pursue those who profit from unlawful activity.”

According to the investigation, from February 1, 2025, through June 11, 2026, XIAOLAN GONG, owned and operated four massage parlors: Long Island Green Apple Spa Inc., Lavender Spa Salon Inc., and Huntington Spa NY Inc., and 192 Foot Spa Inc. During that time, GONG allegedly used the massage parlors as fronts for an illegal prostitution operation.

The eight other female co-defendants, XIAOFANG CAO, MEILAN ZHOU, YUPING CHENG, SHAN SHAN GONG, YAZHI LYU, XIAOXIA CHEN, XIAOMEI SUN, AND DONGMEI YU, allegedly provided unlicensed massages and offered to perform sexual acts in exchange for cash to undercover law enforcement officers on multiple occasions throughout the investigation.

New York State Education Law requires those who perform massages in New York to hold a massage therapy license. XIAOLAN GONG and YAZHI LYU also allegedly submitted employment registration documents containing false statements to the New York State Department of Labor.

Co-defendant XIAOYI LIU, the sole male charged in the indictment, allegedly deposited money into a bank account linked to one of the massage parlors and allegedly received the funds from XIAOLAN GONG. LIU also allegedly drove several female workers to the businesses when XIAOLAN GONG was away.

Multiple defendants allegedly encouraged patrons to pay in cash in order to conceal the true volume and nature of their transactions, and bank records for the businesses allegedly do not reflect their true earnings. During the course of the investigation, the defendants allegedly earned more than $1 million, collectively. The defendants also allegedly engaged in a coordinated money laundering scheme to conceal the origins of their illicit earnings. The illicit proceeds were allegedly used to further promote the operation of the illegal massage businesses, as well as to make mortgage payments on two residences and to fund a brokerage investment account. As part of the investigation, authorities seized funds from multiple banks and moved to freeze two properties that were allegedly used to launder money.

On June 23, 2026, search warrants were executed at the four massage parlors and four of the defendants’ residences, which resulted in the seizure of additional evidence such as cash and gold bars, that are alleged to be linked to the illicit operation.

Defendants

XIAOLAN GONG, 59, of Flushing, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, XIAOLAN GONG was arraigned on the indictment before Supreme Court Justice John B. Collins, who ordered her remanded until her next court date. XIAOLAN GONG is due back in court on August 19, 2026, and faces up to 8 ⅓ to 25 years in prison if convicted of the top count. She is being represented byChristopher Gioe, Esq.

XIAOFANG CAO, 36, of Flushing, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, CAO was arraigned on the indictment before Justice Collins, who ordered her held on $250,000 cash or $2,500,000 bond or $2,500,000 partially secured bond during the pendency of the case. CAO is due back in court on August 19, 2026, and faces up to8 ⅓ to 25 years in prison if convicted of the top count. She is being represented by Jason Bassett, Esq.

MEILAN ZHOU, 56, of Flushing, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, ZHOU was arraigned on the indictment before Justice Collins, who ordered her held on $250,000 cash or $2,500,000 bond or $2,500,000 partially secured bond during the pendency of the case. ZHOU is due back in court onAugust 19, 2026, and faces up to 8 ⅓ to 25 years in prison if convicted of the top count. She is being represented by Ian Fitzgerald, Esq.

YUPING CHENG, 47, of Flushing, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, CHENG was arraigned on the indictment before Justice Collins, who ordered her held on $100,000 cash or $1,000,000 bond or $1,000,000 partially secured bond during the pendency of the case. CHENG is due back in court on August 19, 2026, and faces up to 8 ⅓ to 25 years in prison if convicted of the top count. She is being represented by Katherine Fernandez, Esq.

SHAN SHAN GONG, 35, of Flushing, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, SHAN SHAN GONG was arraigned on the indictment before Justice Collins, who ordered her held on $100,000 cash or $1,000,000 bond or $1,000,000 partially secured bond during the pendency of the case. SHAN SHAN GONG is due back in court on August 19, 2026, and faces up to 8 ⅓ to 25 years in prison if convicted of the top count. She is being represented by William McDonald, Esq.

AZHI LYU, 58, of Bayside, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, LYU was arraigned on the indictment before Justice Collins, who ordered her held on $500,000 cash or $1,000,000 bond or $5,000,000 partially secured bond during the pendency of the case. LYU is due back in court on August 19, 2026, and faces up to 8 ⅓ to 25 years in prison if convicted of the top count. She is being represented by the Legal Aid Society of Suffolk County.

XIAOYI LIU, 57, of Bayside, faces a top count of Enterprise Corruption, a Class B felony. On June 24, 2026, LIU was arraigned on the indictment before Justice Collins, who ordered that he be held on $500,000 cash or $1,000,000 bond or $5,000,000 partially secured bond during the pendency of the case. LIU is due back in court on August 19, 2026, and faces up to 8 ⅓ to 25 years in prison if convicted of the top count. He is being represented by Danielle Papa, Esq.

XIAOXIA CHEN, 41, of Flushing, faces a top count of Unauthorized Practice of a Profession, a Class E felony. On June 24, 2026, CHEN was arraigned on the indictment before Justice Collins, who ordered that she be placed on supervised release during the pendency of the case. CHEN is due back in court on August 21, 2026, and faces up to 1 ⅓ to 4 years in prison if convicted of the top count. She is being represented by Luigi Belcastro, Esq.

XIAOMEI SUN, 52, of Plainview, faces a top count of Unauthorized Practice of a Profession, a Class E felony. On June 24, 2026, SUN was arraigned on the indictment before Justice Collins, who ordered that she be placed on supervised release during the pendency of the case. SUN is due back in court on August 21, 2026, and faces up to 1 ⅓ to 4 years in prison if convicted of the top count. She is being represented by Dan Fox, Esq.

DONGMEI YU, 38, of Hicksville, faces a top count of Unauthorized Practice of a Profession, a Class E felony. On June 24, 2026, YU was arraigned on the indictment before Justice Collins, who ordered that she be placed on supervised release during the pendency of the case. YU is due back in court on August 21, 2026, and faces up to 1 ⅓ to 4 years in prison if convicted of the top count. She is being represented by Melissa Aguano, Esq.

From DA