Owners charged with running prostitution business out of Iowa City massage parlors face civil forfeiture

Hunter
01/14/26

Prosecutors have filed a civil forfeiture on houses in Iowa and Alabama owned by an Iowa City couple charged with running a prostitution business out of two Iowa City massage parlors.

Court documents allege the two houses were bought with illegal proceeds made at two Paradise Spa locations on Broadway Street and First Avenue in Iowa City.  60-year-old Zhenshi Liu and 56-year-old Junping Ren…who own the two massage parlors and live above the Broadway Street location…are both charged with Pimping, Prostitution, Pandering for Prostitution, Money Laundering, and Ongoing Criminal Conduct.

Investigators say they interviewed customers who were leaving the two locations who told them they had received sex acts from workers, including Ren, or the workers had made offers to perform sex acts during massages for more money. Workers claimed they worked 13 ½ hour days, seven days a week, earning $70 an hour. But they also claimed $40 of that money went back to Liu and Ren and another $10 was allotted for room and board.

Liu and Ren allegedly promoted the spas on web sites used for human trafficking. Investigators say they laundered approximately $2.6 million between 2020 and last July. The couple’s son, 33-year-old Yang Liu of Hoover, Ala., is accused of assisting in laundering $1.5 million through his personal accounts. He’s charged with Money Laundering, and Ongoing Criminal Conduct.

The Gazette reports the forfeiture document states Yang Liu and his wife, Nan Jiang, who hasn’t been charged, are listed as the owners for the house in Iowa City and another in Birmingham, but Ren and Zhenshi Liu contributed cash to pay for the properties.

The house in the 4000 block of Preston Lane in Iowa City, was purchased in September 2023 for $349,000 in cash. No mortgage or loans were obtained to purchase the property.

The Birmingham house in the 3000 block of Iris Drive was purchased in May for $600,000 in cash, according to the document. No loans or mortgages were obtained.

A jury trial is set to begin March 3rd. A case management conference is scheduled for February 13th.