Ming Xia, a 41-year-old resident of Flushing, New York, pled guilty on March 3 to conspiracy to commit money laundering involving proceeds from a prostitution enterprise, according to an announcement made by First Assistant United States Attorney John A. Sarcone III.
The case is significant as it involves the operation of several spas in the Capital Region where employees provided commercial sex services. The spas generated over $2 million in proceeds that Xia admitted to laundering through third parties and using for asset purchases, including multiple properties. As part of his plea agreement, Xia will forfeit $198,000 in cash seized by law enforcement, two commercial properties, and four residences.
Sarcone said, “Mr. Xia did not merely run an illegal business, he built a multimillion-dollar enterprise on the commodification of women, treating them as instruments for financial gain while laundering the proceeds to enrich himself through cash and real estate. 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. I thank the FBI, HSI, IRS, and NYSP for all their work in safeguarding our communities from those who exploit human beings for profit.”
FBI Special Agent in Charge Craig Tremaroli said, “Mr. Xia admitted to operating an extensive commercial sex enterprise and laundering the profits, and now he’s facing a substantial amount of time in federal prison. This case illustrates how committed the FBI remains to working with our federal, state, and local law enforcement partners to investigate and shut down these disturbing businesses and ensure anyone who operates them is swiftly brought to justice.”
HSI Special Agent in Charge Erin Keegan said that Ming Xia “treated the Capital Region as his personal cash register” by turning neighborhood spas into brothels and moving millions in criminal proceeds through local communities. Keegan added that this scheme “exploited vulnerable workers” and undermined legitimate commerce.
IRS-CI Special Agent Harry T. Chavis said that Xia’s guilty plea resulted from traditional police work: “When someone uses a business as a cover to move millions in dirty cash, we’re going to follow the money and shut it down.” NYSP Superintendent Steven G. James also commented on law enforcement’s commitment: “Efforts to intercept illegal business practices are an integral part of protecting our communities in New York State…we will continue to be relentless in the fight against money laundering.”
Sentencing is scheduled for July 1 before United States District Judge Anne M. Nardacci. Xia faces up to 20 years in prison along with a maximum fine of $500,000 and up to three years of supervised release.
