ALBANY, NEW YORK - Ming Xia, age 41, of Flushing, New York, pled guilty on March 3, 2026, to conspiracy to commit money laundering involving the proceeds of a prostitution enterprise.

The announcement was made by First Assistant United States Attorney John A. Sarcone III, Special Agent in Charge Craig Tremaroli of the Albany Field Office of the Federal Bureau of Investigation, Special Agent in Charge Erin Keegan of Homeland Security Investigations, Buffalo Field Office, Special Agent in Charge Thomas Fattorusso of the Internal Revenue Service, Criminal Investigation, New York Field Division, and New York State Superintendent Steven James.

As part of his guilty plea, Xia admitted to operating several spas in the Capital Region where employees provided commercial sex services to customers. The spas generated over $2 million in proceeds, which Xia admitted laundering through third parties and using to purchase assets, including several properties. As part of his plea, Xia agreed to forfeit $198,000 in cash that was seized by law enforcement, two commercial properties, and four residences.

First Assistant United States Attorney Sarcone stated, "Mr. Xia did not merely run an illegal business, he built a multimillion-dollar enterprise on the commodification of women, treating them as instruments for financial gain while laundering the proceeds to enrich himself through cash and real estate. Let this guilty plea serve as a clear warning: those who exploit others for personal profit and attempt to hide their gains will be identified, prosecuted, and stripped of their ill-gotten assets. I thank the FBI, HSI, IRS, and NYSP for all their work in safeguarding our communities from those who exploit human beings for profit."

FBI Special Agent in Charge Craig Tremaroli stated, "Mr. Xia admitted to operating an extensive commercial sex enterprise and laundering the profits, and now he's facing a substantial amount of time in federal prison. This case illustrates how committed the FBI remains to working with our federal, state, and local law enforcement partners to investigate and shut down these disturbing businesses and ensure anyone who operates them is swiftly brought to justice."

HSI Special Agent in Charge Erin Keegan stated, "By turning neighborhood spas into brothels and washing millions in criminal proceeds through our communities, Ming Xia treated the Capital Region as his personal cash register. His scheme exploited vulnerable workers, poisoned legitimate commerce, and robbed residents of the basic expectation that local businesses are safe and lawful. This guilty plea sends a clear message: HSI and our invaluable Homeland Security Task Force partners will strip criminals of their profits, seize their assets, and shut down any operation that tries to hide behind a respectable storefront."

"Ming Xia's guilty plea is the result of law enforcement doing straightforward, old-fashioned police work. When someone uses a business as a cover to move millions in dirty cash, we're going to follow the money and shut it down. Working alongside our federal and state partners, IRS-CI will continue to trace financial footprints, uncover hidden profits, and ensure that those who abuse the financial system for personal gain are held fully accountable," said Harry T. Chavis, Special Agent in Charge of IRS-CI New York.

NYSP Superintendent Steven G. James said, "Efforts to intercept illegal business practices are an integral part of protecting our communities in New York State. This guilty plea sends a clear message that we will continue to be relentless in the fight against money laundering and those who engage in inappropriate acts for money. The culmination of this investigation would not have been possible without the dedication and expertise of our members, partners at the United States Attorney's Office and all other law enforcement agencies involved in this case."

Sentencing is scheduled for July 1, 2026, before United States District Judge Anne M. Nardacci. Xia faces up to 20 years in prison and a maximum fine of $500,000. The charge also carries a term of supervised release of up to 3 years. A defendant's sentence is imposed by a judge based on the particular statute the defendant is convicted of violating, the U.S. Sentencing Guidelines and other factors.

The FBI, HSI, IRS-CI, and NYSP are investigating the case with assistance from the Brooklyn District Attorney's Office, Human Trafficking Unit. Assistant U.S. Attorney Katherine Kopita is prosecuting the case.