CR 2012-048 Massage Therapist License Revocation1* May 31, 2012 Council Report 2012-048
Massage Therapist 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
Therapist license of Yazhi Xiao 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 with Yazhi Xiao 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. The City Manager, using the authority granted him under Section
1185,19, Subd. 6, sent a letter to Yazhi Xiao informing her that her massage 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
Yazhi Xiao's Massage Therapist License.
Primary Issues to Consider
• Does the evidence provided support the staff recommendation to revoke the massage
therapist license?
Staff believes the accumulated evidence provided supports the recommendation to
revoke the massage therapist license for Yazhi Xiao.
Supporting Information
• Memorandum to City Manager Mornson
• Ordinance 1185.19 and State Statute 609.321
• City Manager letter to Massage Therapist Yazhi Xiao
• Massage license
• Findings of fact and decision
I(Aichael-J. eynolds
Chief of Police
Memorandum
To: Mike Morrison, 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 Sheriff's 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 1st; 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 1st. 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.
Thus conduct violated Minnesota Statutes Section 609.321, and, by extension, Hopkins Ordinance
1185.19, Subd. 1, "[v]iolation 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."
City Staff is therefore recommending revocation of Yazhi NMN Xiao's Massage Therapist License.
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. IO.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.
11 /-
May
--1
May 11, 2012
1010 FirstStrmtSouth 9 Hopkins, MN 55343-7573 9 Phone: at 952-935-8474 9 Fes'
2
Web a&ress: www.hopkimm.com
Yazhi Xlao
414 Pondridge Circle
Wayzata, MN 55391
Re: 1) Notice of Massage Therapist License Revocation Hearing
2) Temporary Suspension (21 Day) of Massage Therapist License
Licensee: Yazhl Xao
License No.: 2067
Dear Ms. Xiao:
This Notice is served on you because you are holder of the above -referenced Massage Therapist License.
on or about May 1, 2012, you were arrested and later criminally charged for
prostitution at 1209 Mainstreet, in the City of Hopkins, a licensed Massage therapy
Establishment. Your conduct at that time violated Minnesota Statutes Section 609.324,
subd. 2(1), and, by extension, Hopkins Ordinance 1185.19, Subd. 1(f), "[vliolation 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,"
City Staff is recommending revocation of your Massage Therapist 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 —1;` 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 Therapist 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 Therapist
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 perform massage in the City of Hopkins while
this suspension is in effect. If you violate the temporary suspension, you will be subject to criminal
prosecution.
Sind el
Mike Mornson
City Manager
CC: Mike Half, Property Owner - 1209 Mainstreet
Partnering v4th the community to Enhance the Quality of Life
# Inspire * Educate + involve + Communicate *
License 2067 CITY OF HOPKINS Fee: $150.00
LICENSE 2012
WHEREAS YAZHI XIAO
has met all of the requirements of the State of Minnesota and the City of Hopkins
THEREFORE, YAZHI XIAO
is hereby licensed to operate the following bu8iness/sell the following controlled products:
MASSAGE LICENSE
MASSAGE LICENSE, INVESTIGATION
AT 1209 MAINSTREET, Hopkins, Minnesota, for the term of March 12, 2012 and ending on
June 30, 2012. ATTEST:
by City Seal
City Clerk
Findings of Fact and Decision of the Hopkins City Council
Concerning the Revocation of Massage Therapist
License #2067
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. Yazhi Xiao (the "License Holder") is the holder of a Massage Therapist License (the "License") and
provided massage services 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 the License Holder.
5. At some point during the massage, the License Holder 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 License
Holder an additional $40.00 for sex acts.
The License Holder 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 License Holder 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 License Holder therefore engaged in prostitution on May 1, 2012 at the Establishment in
violation of Minnesota Statutes Section 609.324, subd. 6. The License Holder's conduct meets the
definition of "Prostitution" and "Prostitution Related Activity" contained in Minnesota Statutes
Section 617.80, subd. 4.
DECISION
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 License Holder may not offer therapeutic massage in the City of Hopkins.
Dated:
Dated:
Eugene J. Maxwell, Mayor
Kris Luedke, City Clerk