According to the U.S. Attorney’s Office for the Northern District of New York, 41‑year‑old Ming Xia, a Chinese national residing in Flushing, New York, entered his guilty plea on March 3, 2026. Prosecutors said the plea relates to a long‑running prostitution operation that used spa‑type businesses in and around Albany, New York, as fronts.
Court documents state that Xia operated the scheme between 2019 and 2025, during which time he controlled several spas marketed as legitimate massage or wellness centers. The businesses were located in the state’s Capital Region and were designed to appear lawful to customers and the public while allegedly providing commercial sex services behind the façade.
Prostitution enterprise through spa fronts
Federal prosecutors described Xia’s operation as an organized prostitution enterprise built around “illicit massage businesses” disguised as reputable spas. The locations identified in the case include Central Spa, Body and Skin Spa, Zen Body Works, Sisters Body Works, Relaxation Spa, and Physical Wellness Spa.
Investigators allege that employees at these establishments provided commercial sex services to customers, generating substantial cash proceeds over several years. Xia was accused of managing advertising for the spas, coordinating the movement of workers between locations, and regularly traveling to each site to collect money.
According to the plea agreement, the spas collectively generated more than 2 million dollars in proceeds, all of which were treated as criminally derived funds tied to the underlying prostitution activity. Prosecutors said the businesses operated for a prolonged period before authorities moved to dismantle the network through coordinated law‑enforcement actions.
Money laundering conduct and forfeiture
As part of his guilty plea to conspiracy to commit money laundering, Xia admitted that he did not simply earn money from the prostitution enterprise but also took steps to conceal and legitimize the proceeds. Court filings state that he laundered the revenue through third parties before using the funds to purchase real estate and other assets.
The U.S. Attorney’s Office reported that the laundered funds were traced to six properties: three in Albany, New York, two in Flushing, Queens, and one in Endwell, New York. These assets included both commercial locations and residential properties that prosecutors say were bought, at least in part, with illicit proceeds from the spa‑based prostitution scheme.
As part of the plea, Xia agreed to forfeit 198,000 dollars in cash seized during the investigation, along with six properties identified by federal authorities. The forfeited assets include two commercial properties and four residences that prosecutors characterize as acquired or maintained with laundered criminal proceeds.
Statements from prosecutors and investigators
In a statement issued with the plea announcement, First Assistant U.S. Attorney Lisa Sarcone said Xia’s conduct went beyond operating an unlicensed or illegal business and instead represented a calculated effort to profit from the exploitation of women. She said Xia “built a multimillion‑dollar enterprise on the commodification of women” and used money laundering to enrich himself through cash and real estate purchases.
Sarcone stressed that federal authorities intend the case to send a message to individuals who attempt to hide profits from similar enterprises. “Let this guilty plea serve as a clear warning: those who exploit others for personal profit and attempt to hide their gains will be identified, prosecuted, and stripped of their ill‑gotten assets,” she said, thanking the FBI, Homeland Security Investigations (HSI), the Internal Revenue Service, and the New York State Police for their work on the case.
FBI Special Agent in Charge Craig Tremaroli said Xia had admitted to running “an extensive commercial sex enterprise and laundering the profits.” He added that the case demonstrates the FBI’s continued commitment to working with federal, state, and local partners to investigate and close what he described as “disturbing businesses” and to ensure that operators are brought to justice.
HSI Special Agent in Charge Erin Keegan characterized the use of local spas as fronts for prostitution and money laundering as a direct threat to communities. “By turning neighborhood spas into brothels and washing millions in criminal proceeds through our communities, Ming Xia treated the Capital Region as his personal cash register,” Keegan said. She added that the scheme “exploited vulnerable workers, poisoned legitimate commerce, and robbed residents of the basic expectation that local businesses are safe and lawful.”
Keegan said Xia’s guilty plea shows that HSI and its task force partners will continue to target criminal profits, seize assets, and close operations that attempt to “hide behind a respectable storefront.”
Charges, penalties, and next steps
Xia was originally indicted in February 2025 on charges related to the prostitution enterprise and associated financial activity. Under the plea entered in March 2026, he has admitted to one count of conspiracy to commit money laundering involving the proceeds of the prostitution scheme.
According to the U.S. Attorney’s Office, the charge carries a maximum sentence of 20 years in federal prison, up to three years of supervised release, and a fine of up to 500,000 dollars. Sentencing is scheduled for July 1, 2026, before a federal judge in the Northern District of New York, where the court will consider advisory sentencing guidelines and any recommendations from the parties.
The government has also moved to finalize forfeiture of the seized cash and real property, arguing that they represent or are traceable to proceeds of the criminal conspiracy. The final sentence and forfeiture orders will be set by the court after reviewing the plea agreement, presentence report, and any victim impact or mitigation submissions.
The Epoch Times reported that it had contacted Xia’s attorney seeking comment on the plea and the allegations in the case but had not received a response at the time of publication. No additional public statements from the defense have been released in the court documents summarized by prosecutors.
Wider enforcement context
Federal authorities noted that the Xia prosecution forms part of a broader set of actions aimed at dismantling illicit enterprises that combine prostitution, human exploitation, and financial crime. In a separate but related enforcement trend, four Chinese nationals living in Flushing were indicted in early 2026 for allegedly running brothels disguised as massage spas in Pennsylvania and were charged with human trafficking, immigration offenses, and money laundering.
Officials say such cases highlight how illicit massage businesses can be used to mask a range of criminal conduct, from prostitution and trafficking‑related exploitation to complex laundering of cash through real estate and other assets. Law‑enforcement agencies have emphasized that they will continue targeting both the underlying exploitation and the financial structures that sustain these operations.