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 and several federal and state law enforcement officials.
The case highlights ongoing efforts by authorities to combat illegal businesses that exploit vulnerable individuals and launder criminal profits through legitimate channels. Xia admitted to operating multiple spas in the Capital Region where employees provided commercial sex services, generating over $2 million in proceeds. He laundered these funds through third parties and used them to purchase assets such as properties. As part of his plea agreement, Xia will forfeit $198,000 in cash seized by law enforcement, two commercial properties, and four residences.
First Assistant United States Attorney John A. Sarcone III 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's actions "exploited vulnerable workers" and "robbed residents of the basic expectation that local businesses are safe and lawful." IRS-CI Special Agent Harry T. Chavis added that tracing financial footprints is key: “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 emphasized continued vigilance against money laundering: “This guilty plea sends a clear message that we will continue to be relentless in the fight against money laundering and those who engage in inappropriate acts for money.”
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; supervised release could last up to three years following any prison term imposed.
The investigation was conducted by the FBI, Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation (IRS-CI), New York State Police (NYSP), with assistance from the Brooklyn District Attorney’s Office Human Trafficking Unit.
