Three charged with running human trafficking ring out of Newark-area massage parlors

According to the indictment, the crimes took place at three businesses: Rainbow 7 Spa at 610 Capitol Trail, Bloom Head-to-Toe at 2610 Kirkwood Highway and Royal 7 Spa at 785 Pulaski Highway. They also took place at the a residence at 122 Ballymeade Drive in Wilmington.

Women were living at the establishments in closed quarters and unsanitary living conditions and they were made to perform sexual services on male clients and work long hours seven days a week, authorities said.

The illicit activity has been going on since at least March 2020.

“Some people assume human trafficking only happens on the other side of the world, but the reality is that it is right in our backyard – and cases like these are just the tip of the iceberg,” Attorney General Kathy Jennings said. “I’m grateful to the prosecutors and law enforcement who continue to aggressively pursue traffickers and to support the victims of these atrocities.”

Xui Li Kong, 57, Jing Zhang, 40, and Hua Li, 59, were each indicted on charges of criminal racketeering, conspiracy, human trafficking, promoting prostitution, money laundering, criminal nuisance and operating a massage establishment without a license.

Additionally, Kong was indicted on insurance fraud, theft, and tax evasion. Zhang was indicted on tax evasion. Li was indicted on failure to file a tax return.

According to authorities, the businesses made more than $300,000 in cash deposits across multiple personal bank accounts. These cash deposits are in addition to credit card receipts and cash deposits into the business accounts for each establishment.

Kong and her husband, Zhang, are alleged to have evaded taxes by not claiming appropriate income on their tax returns. Li did not file any tax returns for this period.

Kong is also accused of fraudulently collecting more than $25,000 in unemployment by falsely claiming the massage parlors were closed during the pandemic. She also fraudulently signed up for Medicaid by claiming an income of under $18,000 per year, authorities alleged.

The Delaware Department of Justice froze more than $200,000 in suspected proceeds from the business and also put a lien on the Ballymeade Drive property.

“Human trafficking is a continuing epidemic that brings challenges not only to the United States of America but countries across the globe,” said Col. Melissa Zebley, superintendent of the Delaware State Police. “Locally, the Delaware State Police is working tirelessly with the Delaware Department of Justice and other law enforcement allies to identify and combat human trafficking by aggressively investigating individuals and businesses who prey upon unsuspecting victims.”