CR 2012-047 Business License Revocation ( 1209 Mainstreet)1*
May 31, 2012 Council Report 2012-047
Business License Revocation
Proposed Action
Staff recommends adoption of the following motion: Based upon the arguments,
testimony, documents, and other evidence submitted, move to revoke the Massage
Therapy Establishment license issued to Wei Pan at 1209 Mainstreet for violation of State
Statutes 609.321 and Hopkins Ordinance 1185 and adopt the findings of fact and decision
and authorize Mayor and City Clerk to complete same and provide to named party.
Overview
On May 1, 2012, officers from the Hopkins Police Department and other departments
conducted an undercover operation of a massage business located at 1209 Mainstreet.
As described in the attached memorandum, during the course of the massage, $40.00
was exchanged in return for sexual contact. In addition, documents seized during the
arrest indicated that there was a pattern of illegal activities at this location.
This conduct violated MN Statutes Section 609.321 and, by extension, Hopkins Ordinance
1185.19, Subd. 1. The City Manager, using the authority granted him under Section
1185,19, Subd. 6, sent a letter to Wei Pan informing her that her massage therapy
establishment license was being suspended for 21 days and that a hearing regarding
revocation of her license would be held on June 5 before the City Council. City Staff is
now recommending revocation of Wei Pan's Massage Therapy Establishment License.
Primary Issues to Consider
• Does the evidence provided support the staff recommendation to revoke the massage
therapy establishment license?
Staff believes the accumulated evidence provided supports the recommendation to
revoke the massage therapy establishment license for Wei Pan.
Supportina Information
• May 11, 2012 Memorandum to City Manager Mornson
• Ordinance 1185.19 and 1185.05 and MN Statute 609.321.
• City Manager letter to Wei Pan
• Massage establishment license
• Findings of fact and decision
Michael J. Reynolds
Chief of Police
Memorandiun
To: Mike Momson, City Manager
From: Michael Reynolds, Chief of police
Date: May 11, 2012
Re: Massage Licenses at 1209 Mainstreet
On May 1, 2012, officers from the Hopkins Police Department, Brooklyn Center Police Department and
the Hennepin County Sheriffs Department conducted an undercover operation of a massage business
located at 1209 Mainstreet. The intention of the undercover operation was a compliance check of the
business to make sure no prostitution was taking place. The reason this business was chosen was due in
part to citizens' complaints the police department received over the last several months. There was also
previous record of illegal activity at this location. The police department did a similar undercover
operation on this business in August of 2011 and made two arrests in that case because prostitution was
found to be taking place.
The police department also confirmed the above complaints prior to the undercover operation by viewing
on-line sources commonly frequented by patrons of these types of establishments. These sources
indicated that illegal sexual activity was taking place for an additional charge over and above the initial
massage charge. Because of this information, an anticipatory search warrant was drafted for 1209
Mainstreet, which was signed by a Hennepin County judge.
An undercover police officer from the Brooklyn Center Police Department did enter the business at 1209
Mainstreet and asked for a one hour massage. This officer was carrying a concealed recording device that
surveillance and back-up officers could monitor. The officer did pay for the $80 one hour massage. At
the end of the massage, the officer was asked if he wanted a sexual act to be performed on him. He
provided the therapist an additional $40. The therapist then began to massage the officer's private parts.
At this point, the back-up officers entered the business, arrested Yazhi NMN Xiao and executed the
search warrant.
The search warrant and subsequent arrest resulted in a monetary seizure of $5,886. Other items taken in
the search warrant for evidentiary purposes were: two computers; a hand written log tracking the business
for May 1 st; and three massage beds. It should be noted concerning the hand written log, officers were
able to determine that Ms. Xiao and a co-worker of hers provided eight other massages on May 1 st. On
all log entries there was a column where the therapists wrote down $70 and a second column for each
massage with an additional $40. Officers suspect that the column for the $40 was how the therapists kept
track of the illegal activities.
The actions described constitute prostitution under state law. This is a violation of Hopkins Ordinance
1185.19, Subd. 1 (g) and (h), which requires the holder of a Massage Therapy Establishment License to
supervise Massage Therapists, employees, or independent contractors so as to prevent prostitution or
prostitution -related activities, or other violations of local ordinance or state or federal statute reasonably
related to the licensed activity. City Staff is therefore recommending revocation of the Massage Therapy
Establishment License for 1209 Mainstreet.
Hopkins City Code Section 1185.19 Revoking, Suspending, Denying or Not Renewing a License.
Subd. 1. The City Council may revoke, suspend, deny or decline to renew any Massage Therapist
license or Massage Therapy Establishment license issued under this Section. The basis for such
revocation, suspension, denial or non -renewal includes, but is not limited to, any of the following
circumstances:
a) The license was procured by misrepresentation of material facts.
b) The applicant or one acting in his/her behalf made oral or written misstatements
accompanying the application.
c) The applicant has failed to comply with any condition set forth in any other permits granted
by the City of Hopkins.
d) The activities of the applicant or any owner/agent create or have created a danger to the
public health, safety or welfare.
e) Failure to pay any application, penalty or reinstatement fee required by this Section and City
Council resolution.
f) Violation of any regulation or provision of the code reasonably related to the licensed activity
for which the license has been granted, or any other state or federal regulation or law so
related.
g) Failure of a holder of a Massage Therapy Establishment license to properly supervise an
employee or independent contractor who has violated any ordinance or state or federal statute
reasonably related to the licensed activity.
h) Failure of a holder of a Massage Therapy Establishment license to properly supervise its
Massage Therapists, employees or independent contractors so as to prevent prostitution or
prostitution -related activities, as defined in Minnesota Statutes Section 617.80.
i) Any violation of this Section 1185.
1185.05 License Required. Subdivision 1. It shall be unlawful for any person to practice as a massage
therapist or operate a massage therapy establishment in the City of Hopkins without first obtaining a
license to do so. However, no license is required for any massage therapist working for or as an
employee of a medical professional licensed under Minnesota Statutes Chapters 147 or 148.
MN Statute 609.321
Subd. 7.Promotes the prostitution of an individual.
"Promotes the prostitution of an individual" means any of the following wherein the person
knowingly:
(1) solicits or procures patrons for a prostitute;
(2) provides, leases or otherwise permits premises or facilities owned or controlled by the person
to aid the prostitution of an individual;
(3) owns, manages, supervises, controls, keeps or operates, either alone or with others, a place of
prostitution to aid the prostitution of an individual;
(4) owns, manages, supervises, controls, operates, institutes, aids or facilitates, either alone or
with others, a business of prostitution to aid the prostitution of an individual;
(5) admits a patron to a place of prostitution to aid the prostitution of an individual; or
(6) transports an individual from one point within this state to another point either within or.
without this state, or brings an individual into this state to aid the prostitution of the individual.
Subd. 8.Prostitute.
"Prostitute" means an individual who engages in prostitution by being hired, offering to be hired,
or agreeing to be hired by another individual to engage in sexual penetration or sexual contact.
Subd. 9.Prostitution.
"Prostitution" means hiring, offering to hire, or agreeing to hire another individual to engage in
sexual penetration or sexual contact, or being hired, offering to be hired, or agreeing to be hired
by another individual to engage in sexual penetration or sexual contact.
Subd. 10. Sexual contact.
"Sexual contact" means any of the following acts, if the acts can reasonably be construed as
being for the purpose of satisfying the actor's sexual impulses:
(i) the intentional touching by an individual of a prostitute's intimate parts; or
(ii) the intentional touching by a prostitute of another individual's intimate parts.
May 11., 2012
qfopkins
1010 First Street South • Hopkin, MC 55343-7573 *Phone: 952-9354474 • F -ax• 952-935-1834
Web address: www.hopk umn.com
Wei Pan
414 Pondridge Circle
Wayzata, MN 55391
Re: 1) Notice of Massage Therapy Establishment License Revocation Hearing
2) Temporary Suspension (21 Day) of Massage Therapy Establishment License
Licensee: Wei Pan
License No.: 2066
Address: 1209 Mainstreet, Hopkins MN
Dear Ms. Pan:
This Notice is served on you because you are holder of the above -referenced Massage Therapy
Establishment License.
On or about May 1, 2012, there was an arrest and a later criminal charge for
prostitution at your licensed establishment at the above address. This is a violation of
your duties under Hopkins Ordinance 1185.19, Subd.1 (g) and (h), which requires you,
as the holder of a Massage Therapy Establishment License, to supervise your Massage
Therapists, employees, or independent contractors so as to prevent prostitution or
prostitution -related activities, or other violations of local ordinance or state or federal
statute reasonably related to the licensed activity.
City Staff is recommending revocation of your Massage Therapy Establishment License by the City
Council. This matter is set on for a hearing before the Hopkins City Council on June 5, 2012 at 7:30 p.m.,
in the Council Chambers at Hopkins City Hall, 1010 — I" Street South, Hopkins, Minnesota. The hearing
will be governed by Hopkins Ordinance 1185.19. The City Council will hear all relevant evidence and
arguments, and will review all testimony, documents, and other evidence submitted. You will have an
opportunity to be heard and you may be represented by counsel. The City Council will decide whether
to revoke your Massage Therapy Establishment License or to exercise any other lawful authority it may
have over your license based on the evidence received at that hearing.
Finally, pursuant to my authority under Hopkins Ordinance 1185.19, Subd. 6, your Massage Therapy
Establishment License is suspended for 21 days, beginning Monday, May 14th. The conduct described
above violates the provisions of Section 1185 of the Hopkins Ordinances, or otherwise constitutes a
crime of moral turpitude related to the license. it is a crime for you to allow anyone to perform massage
at your location while this suspension is in effect. If you violate the temporary suspension, you will be
subject to criminal prosecution.
Sin Yornson
Mike
City Manager
Cc: Mike Hall, Property Owner —1209 Mainstreet
Tartnerin8 %t th the Community to Enhance the Oydity of Life
4 Inspire + Educate 4 Invo`ve + Communicate +
License 2066 CITY OF HOPKINS Fee: $ 75.00
4co
LICENSE 2012
WHEREAS WEI PAN DBA ASIAN MASSAGE
has met all of the requirements of the State of Minnesota and the City of Hopkins
THEREFORE WEI PAN DBA ASIAN MASSAGE
is hereby licensed to operate the following business/sell the following controlled products:
1 MASSAGE ESTABLISHMENT LICENSE
at 1209 MAINSTREET Hopkins, Minnesota, beginning on March 9, 2012 and ending on June 30,
2012. ATTEST:
�1 by City Seal
City Clerk
Findings of Fact and Decision of the Hopkins Qjy Council
Concerning the Revocation of Massage Therapy
Establishment License #2066
This matter came on for hearing on June 5, 2012, at 7:30 p.m., in the Hopkins City Council Chambers located
at 1010 First Street South, in the City of Hopkins, Minnesota.
The License Holder (as defined below) was provided notice of the hearing according to the terms of Hopkins
Ordinance 1185.19, subd. 2.
The License Holder, appeared did not appear at the hearing and was was not
represented by counsel, attorney
The Hopkins City Council makes the following:
FINDINGS OF FACT
1. Wei Pan (the "License Holder") is the holder of a Massage Therapy Establishment License (the
"License") for property located at 1209 Mainstreet, in the City of Hopkins, Minnesota (the
"Establishment").
2. On May 1, 2012, an undercover police officer (the "Undercover Officer' travelled to the
Establishment as part of a police operation to investigate reports of prostitution and prostitution -
related activity.
3. The Undercover Officer is over 18 years of age.
4. The Undercover Office received a massage from a massage therapist, Yazhi Mao (the `gherapist'�
5. At some point during the massage, the Therapist offered to perform sex acts on the Undercover
Officer for an additional $40.00.
6. The Undercover Officer, acting within the scope of his investigation, agreed to pay the Therapist an
additional $40.00 for sex acts.
7. The Therapist then began to massage the Undercover Officer's genitalia, at which time the
Undercover Officer alerted nearby police officers who promptly entered the Establishment and took
the Therapist into custody.
8. A subsequent search of the Establishment revealed a document containing two columns: one column
appears to denote the price of the massage, and another column contains a record of $40.00 entries.
It appears that this document was used for bookkeeping purposes and establishes that the
prostitution and prostitution related activity at the Establishment. The City Council finds that this is
a reasonable inference.
9. Minnesota Statutes Section 609.321, subd. 12, defines a massage parlor as a "public place." The
Establishment is, therefore, a "public place."
10. Minnesota Statutes Section 609.321, subd. 8, defines "prostitute" as an "individual who engages in
prostitution by being hired, offering to be hired, or agreeing to be hired by another individual to
engage in sexual penetration or sexual contact."
11. Minnesota Statutes Section 609.321, subd. 9, defines "prostitution" as "being hired, offering to be
hired, or agreeing to be hired by another individual to engage in ... sexual contact."
12. Minnesota Statutes Section 609.321, subd. 10, defines "sexual contact" as "the intentional touching
by a prostitute of another individual's intimate parts."
13. Minnesota Statutes Section 609.324, subd. 6, states: "Whoever, while acting as a prostitute,
intentionally does any of the following while in a public place is guilty of a gross misdemeanor ...is
hired, offers to be hired, or agrees to be hired by an individual 18 years of age or older to engage in
sexual penetration or sexual contact."
14. Minnesota Statutes Section 609.324, subd. 6, is a state statute "reasonably related to the licensed
activity," for the purposes of Hopkins Ordinance 1185.19.
15. The Therapist therefore engaged in prostitution on May 1, 2012 at the Establishment in violation of
Minnesota Statutes Section 609.324, subd. 6. The Therapist's conduct on May 1, 2012, meets the
definition of "Prostitution" and "Prostitution Related Activity" contained in Minnesota Statutes
Section 617.80, subd. 4.
16. The License Holder failed to properly supervise the Therapist to prevent violations of state statutes
prohibiting prostitution or prostitution -related activities and other state statutes reasonably related to
the licensed activity in violation of Hopkins Ordinance 1185.19, subd. 1, (g) and (h).
DECISION
1. The Hopkins City Council has decided that the License shall be REVOKED permanently, effective
immediately. The License Holder's license may not be reinstated.
2. The Establishment may not offer therapeutic massage in the City of Hopkins, or allow another to do
SO.
Dated:
Dated:
Eugene J. Maxwell, Mayor
1,Cr-'s Luedke, City Clerk