A large-scale prostitution and money laundering operation has been dismantled across Suffolk County and Queens, according to the Suffolk County District Attorney's Office.
Prosecutors say the alleged ring operated out of several massage parlors used as fronts.
Ten people have been arrested and four businesses have been indicted.
Officials say the operation ran from February 2025 through June 2026 and generated more than $1 million in profits through illegal activity.
“This long-term investigation exposed an alleged sophisticated criminal network ... all while hiding in plain sight behind the doors of four massage parlors disguised as legitimate businesses,” Suffolk County District Attorney Ray Tierney said. “The defendants allegedly built a criminal enterprise with a coordinated money laundering scheme designed to conceal their profits.”
The indicted businesses include Long Island Green Apple Spa, Lavender Spa Salon and Hunting Spa in the Town of Huntington, along with 192 Foot Spa in Flushing, Queens.
At the center of the operation, prosecutors say, was Xiaolan Gong, who is accused of owning and running the four locations as fronts for prostitution. Eight female co-defendants — Xiaofang Cao, Meilan Zhou, Yuping Cheng, Shan Shan Gong, Yazhi Lyu, Xiaoxia Chen, Xiaomei Sun and Dongmei Yu — are accused of performing unlicensed massages and offering sex acts for cash, including during multiple encounters with undercover officers.
A ninth co-defendant, Xiaoyi Liu, the only man named in the indictment, is accused of handling the financial side of the operation, allegedly depositing proceeds into a bank account tied to one of the businesses and taking funds from Gong.
Authorities say the group relied heavily on cash transactions to obscure the scale of the operation, encouraging customers to pay in cash so official records would not reflect the true volume of earnings.
The illicit profits were reinvested into the businesses and used to pay mortgages on two residential properties, as well as to fund a brokerage investment account, according to prosecutors.
Investigators seized funds from multiple bank accounts and froze two properties believed to have been used in the money laundering process.
Search warrants executed Tuesday at the four massage parlors and associated residences uncovered additional evidence, including cash and gold bars.