New York (WRGB) — Qingqin Xie, known as “Coco,” faces federal charges for reportedly promoting and managing a prostitution enterprise in several spas from Ulster County to Saratoga County. A nearly two-year investigation hit a turning point on Wednesday when the FBI was spotted searching massage parlors in Rotterdam and Waterford.
According to a criminal complaint, Xie faces racketeering charges for managing a prostitution business through her massage parlors, including the Sun Spa in Waterford, the Moon Spa in Rotterdam, and the Moon Spa in East Greenbush. Court records also detail that advertisements for the spas featured explicit language and images and were posted on commercial sex websites.
The investigation, conducted by the NYSP, FBI, IRS, and Homeland Security Investigations, involved physical and electronic surveillance, customer interviews, and financial document reviews.
In one instance, a plumber servicing the Sun Spa reported finding drains clogged with condoms. Customers interviewed by law enforcement, as reported in the criminal complaint, admitted to paying for sexual services at Xie’s establishments.
Also listed in the complaint are surveillance photos, which reportedly showed Xie depositing large sums of cash and purchasing vehicles with cash, which investigators believe were proceeds from the operation. Following the closure of the East Greenbush Moon Spa in late 2024, investigators say Xie began operating out of a Colonie motel and later applied to open new businesses, including the Everyday Health Center in Colonie and another spa in Kingston.
Xie was observed managing these operations, including depositing large sums of cash and purchasing a vehicle with cash, which authorities believe were proceeds from the illegal activities. During a search of the East Greenbush Moon Spa, law enforcement found U.S. currency, condoms, and surveillance cameras monitoring the premises.
The criminal complaint says Xie admitted to opening and selling spas, arranging customer appointments, and paying for advertisements. However, she claimed she did not know her employees engaged in commercial sex acts. The investigation revealed that Xie used a surveillance system to monitor law enforcement activities and withdrew $17,000 from her bank account to prevent its seizure during a search warrant execution.
The complaint charges Xie with violating Title 18, United States Code, Section 1952(a)(3), related to the operation of commercial sex enterprises.
Xie is expected to appear in front of a judge for a detention hearing on Thursday afternoon.