A Crown Point couple was formally charged Friday with allegedly using their two massage parlors as a front for prostitution, while concealing massive amounts of cash from taxes.
The man, Guan Yu, 44, is charged with promotion of human trafficking, a Level 4 felony; promoting prostitution, a Level 5 felony, and failure to remit taxes held in trust, a Level 6 felony, according to a nine-page affidavit.
The woman, Wujiao Liu, 45, is charged with the same, plus money laundering, and battery against a public safety official, both Level 6 felonies.
Both are in custody — Liu is held on a $7,500 cash bond, while Yu is held on a $5,500 cash bond, respectively. A new court date before Judge Gina Jones is not yet set.
Liu is also accused in charging documents with funneling huge amounts of untaxed cash through the Hard Rock Casino in Gary.
The investigation started Jan 2 when the Winfield Police Department got “multiple” anonymous tips that Jade Massage, 9001 E. 109th Avenue, was an outlet for prostitution. The affidavit notes a building inspector found condoms in the draining system.
A Mandarin-speaking detective recruited from another department visited the parlor in March 3, April 13 and June 22.
It was “dimly lit,” he noted.
During the visits, the massage progressed to negotiating prices for oral sex or if another woman joined them.
He visited Relax Massage, 1451 Summit Street in Crown Point, on June 22, fitting the same pattern. It had the “same owners,” according to the affidavit. There, a woman signaled that sex acts were available.
The couple also owned Sakura KJ restaurant, 204 S. Main Street in Crown Point and Yamato sushi restaurant, 10819 Randolph St., in Winfield.
Authorities accused Liu of going to the Hard Rock Casino — sometimes twice a day — and “always” leaving with uncashed casino chips bought with cash.
That was a money laundering tactic to skip out on taxes, according to the affidavit. Chips can be returned later for cash.
Investigators with the Indiana Gaming Commission tracked her activities through her “player’s card,” which is given to frequent customers.
In total, she spent over $1.5 million since the casino opened in 2021, court records show. Her visits fit a pattern — “extremely large cash buy-ins,” small losses, and cashing in $100,000 less than she had.
In 2023 alone, through July 24 — she visited 132 times, spent nearly $575,000, lost about $600 at the slots, won $1,200 elsewhere and redeemed $364,000 in chips. About $210,000 in chips was “lost” or not cashed.
Liu went nearly 150 times in 2022, spending $643,000, losing $27,000, redeeming $407,000. In 2021, the year it opened, she spent $347,000, lost $53,000 and redeemed $147,000 in chips.
Authorities also found the two massage parlors were not properly registered with the state to pay sales tax. The two restaurants were underreporting, with each claiming $0 cash income.
In a one stakeout, investigators saw Yu leaving one business with a banker’s bag and get into a Porsche.
At the casino, another woman appeared to put a brown bag into Liu’s trunk. Liu went into the parking lot to get it, before going to a bathroom. Both women were seen taking cash out of it.
Liu was arrested on Nov. 1 at her home when police executed a search warrant, while Yu was arrested near 109th Ave and Delaware Parkway with $4,300 in cash.
Liu reportedly kicked in the backseat and spit at an officer in a squad car.
At the massage parlors, authorities saw food and clothes — signs at both that women lived there.
Signs on a wall asked for “cash tips.” Another sign appeared to give lip service to discouraging prostitution.
“Don’t practice therapy as porn, or you will have the consequence,” it read.
At Jade Massage, police found $15,000 in cash, including $12,000 in a tote in the kitchen. At the couple’s home on the 600 block of E. 113th Place, they found $70,000 in cash.
There was paperwork, including on scraps in Mandarin, for bookkeeping, including how much cash each employee brought in. The women paid $10 per day to live at the businesses.
One woman said she came over to Chicago five years ago because “America was great.” She primarily cleaned the business, but also assisted in massages when needed.
A different victim said she was trapped there without a car and had nowhere else to go if she left. The couple wouldn’t let her call the cops.
She made between $1,000-$1,200 per month before paying about $300 in rent, she said. She worked 12 hours per day, every day. The couple came in every few days or weeks to pick up cash.
None of the women actually wanted to work there and she would be embarrassed to tell her family. But the “only way to make enough money to live” was by selling sex there, she said.
Liu told police she came to the U.S. from China in 2001, moving to Indiana in 2006. She and Yu weren’t formally married, she said. She recruited employees from Chicago, but denied they performed sex acts for cash. When asked about avoiding taxes, she told police to talk to Yu.
Asked how she could afford to spend over $570,000 at the casino this year, she claimed she “simply gambles.” She denied wrongdoing until told the casino tracks her activity. Then, Liu admitted giving chips to “others”.
Yu said another firm handled the taxes for their businesses. He denied any of the women lived there and didn’t know they performed sex acts for cash.
