The Delaware Department of Justice’s Human Trafficking Unit has indicted three individuals with running a ring of illicit massage establishments, Attorney General Kathy Jennings announced today

“Some people assume human trafficking only happens on the other side of the world, but the reality is that it is right in our backyard — and cases like these are just the tip of the iceberg,” said Attorney General Jennings. “I’m grateful to the prosecutors and law enforcement who continue to aggressively pursue traffickers and to support the victims of these atrocities.”

“Human trafficking is a continuing epidemic that brings challenges not only to the United States of America but countries across the globe,” said Colonel Melissa Zebley, the Superintendent of the Delaware State Police. “Locally, the Delaware State Police is working tirelessly with the Delaware Department of Justice and other law enforcement allies to identify and combat human trafficking by aggressively investigating individuals and businesses who prey upon unsuspecting victims.”

On February 27, a New Castle County grand jury charged Xui Li Kong, 57, Jing Zhang, 40, and Hua Li, 59, with one count each of Criminal Racketeering, Conspiracy to Commit Criminal Racketeering, Human Trafficking, Promoting Prostitution 3^rdDegree, Money Laundering, Conspiracy 2^ndDegree, Criminal Nuisance, and Operating a Massage Establishment without a License.  

Additionally, Kong was indicted on two counts of Insurance Fraud, one count of Theft, and one count of Tax Evasion.  Zhang was indicted on an additional count of Tax Evasion.  Li was indicted on one count of Failure to File a Return.

The indictment alleges that from March 2020 to February 2023, the trio, along with unindicted co-conspirators, operated a ring of illicit massage establishments in the North Wilmington and greater Newark areas.  Search warrants executed at several locations — Kong and Zhang’s personal residence on Ballymeade Drive in Wilmington, Bloom Head-to-Toe at 2610 Kirkwood Highway in Newark, Rainbow 7 Spa at 610 Capitol Trail in Newark, and Royal 7 Spa at 785 Pulaski Highway — revealed that female victims were living at the establishments in closed quarters and unsanitary living conditions. The victims were made to perform sexual services on male clients, and work long hours, 7 days a week as part of their job duties.  

The investigation further determined that Kong had applied for unemployment through the Department of Labor and was awarded over $25,000 in unemployment payments while alleging that one of the businesses, Bloom Head-to-Toe, was closed because of the pandemic.  Bank records subsequently showed that the business was in fact open and operating.  In addition, Kong had applied for Medicaid through the Department of Health and Social Services and had been approved based on her alleged income meeting the threshold of being under $18,075.00 per year.

The investigation revealed that during the period of time covered in the indictment the organization made over $300,000 in cash deposits across multiple personal bank accounts.  These cash deposits are in addition to credit card receipts and cash deposits into the business accounts for each establishment. Kong and her husband, Zhang, are alleged to have evaded taxes by not claiming appropriate income on their personal tax returns in relation to the establishments.  Li did not file any tax returns for this period.

As part of the investigation, the Department of Justice and Delaware State Police executed multiple search warrants on associated banks that froze over $200,000 in suspected illegal proceeds from the businesses.  In addition, a Racketeering Lien was signed and filed with the Court as part of the indictment, which places a lien on Kong and Zhang’s property at 122 Ballymeade Drive.

This indictment was secured by Deputy Attorneys General Michael Cooksey and Caroline Brittingham of the DOJ’s Human Trafficking Unit.  The investigation was a collaborative effort between members of the DOJ, the Delaware State Police, the Federal Bureau of Investigation, the Wilmington Police Department, and members of the Delaware Division of Professional Regulation. 

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