Revocation of license for business linked to 'illegal sexual activity' upheld

The Coeur d’Alene City Council, by a 4-2 vote, upheld the revocation of a business license for a massage shop shut down in February. The city alleges it was linked to illegal sexual activity, although no charges were filed. 

Bob Hamilton, owner of the property where the business operated at 1034 N. Third St. Suite A, represented owner Anqin Du, who can’t speak English well, during an hourlong appeal hearing on Monday at the Coeur d’Alene Public Library Community Room.  

He said Du did nothing illegal. 

“I think they made a reasonably good case against the previous owner, no case whatsoever against this owner,” he said following the council’s vote. “I don’t think that’s fair. I don’t think it’s reasonable to take a person’s livelihood without having any proof that they’ve done anything wrong.” 

City Attorney Randy Adams, who presented the city’s case, said the council weighed the evidence and made the right decision. 

In May 2024, the Coeur d’Alene Police Department began investigating businesses “believed to be offering prostitution services or violating city ordinances under the guise of being a massage parlor.” 

A police report said a person named Wei Liu had been denied a license at 1034 N. Third St. Suite A on June 11, 2024, because Liu “was guilty of acts in violation of 5.28,” which covers massage facilities, “and has been found to not have good moral character.” 

Twenty days after Wei Liu’s license was denied, Anqin applied for and received a license for a different massage facility, Foot Massage, at the same location, police said. 

In February, the city of Coeur d’Alene revoked the business licenses of five massage facilities, citing allegations of illegal sexual activity. Police were also concerned that some employees of the massage businesses may be victims of sex trafficking.

Police outlined the case for revoking Du’s business license: 

1. There is substantial evidence that sexual acts for pay have been offered to customers at massage parlors at three locations in August and September 2024. Those locations did not include Foot Massage.  

2. There is substantial evidence linking Liu to those three massage parlors. Police say there is evidence that Liu is involved in those businesses, has knowledge of prostitution occurring at those parlors and profits from that illegal enterprise.  

3. There is substantial evidence showing that Liu has a base of operations at a home on South Clinton Road, Spokane Valley. This base of operations is just north of East Belle Terre Avenue.  

4. Du identified her home address and the mailing address of Foot Massage as 3964 S. Clinton Rd., Spokane Valley, an address just north of East Belle Terre Avenue. 

"This links Anqin Du to Wei Liu, and to a criminal enterprise involving several massage parlors," the report says.

In a Feb. 18 letter to Du, the city cited several reasons for revoking her business license, including that the Avista Utility account for the business was under the name of Yan Liu, who had a massage facility license that was revoked Feb. 25, 2022, and is not eligible to be involved in the management of the facility.

Hamilton argued it's not uncommon for utility bills to remain in the previous tenant's name for several months. He said it was more important who was paying the bills, in this case, Du.

Hamilton said there was no proof Du did anything wrong and said customers at Foot Massage were “never offered anything inappropriate." 

“There is no allegation in the charges here that anything illegal ever occurred at the property at 1034 N. Third St.,” he said. 

Hamilton said Du invested her life saving in a legitimate business only to have the city take it away. He said she was honest, hardworking and wanted to play by the rules.

“I can’t believe our city would deprive somebody of their lone source of income," he said.

Hamilton said he didn't know what Du was going to do.

“This whole process has left her confused and terrified,” he said. 

In a Feb. 24 letter to the city, Du wrote she met Yan Liu, owner of Asian Massage, in June 2024 through an online advertisement offering the business for sale. 

She wrote that after visiting Coeur d’Alene she agreed to buy the business for $58,000, resigned from her job as a massage therapist in Tempe, Ariz., collected belongings in California, gathered her life's savings and moved here. 

She wrote that Yan Liu was not involved in Foot Massage operations. 

“I am a professional massage therapist and do not wish anyone especially in the community to believe that I operate with the same disdain of the law as the previous owner of Asian Massage," she wrote.

She wrote she was aware of illegal goings-on at other massage locations and that it would "never occur at my place of business."

Councilor Dan Gookin asked how police are combating illegal sexual activity. 

Adams said the city conducts criminal background checks and runs fingerprints during the licensing process. 

“We try to catch what we can, but that’s not easy to do,” he said. 

Police Chief Lee White said there is likely another investigation into prostitution and human trafficking occurring by another agency outside the Coeur d'Alene Police Department.

"As to which specific establishments are being investigated, we are not able to say," White said.

Councilor Kiki Miller said she appreciated the city’s effort to combat illegal sexual activity, but voted against upholding the license revocation, as did Dan English. 

"I felt like the dots weren’t quite connected enough,” she said. 

English said he also struggled to find strong evidence linking Du with the illegal activity.

“I’m just not seeing that,” he said. 

Councilor Christie Wood disagreed.

"I do think our city attorney has gleaned out enough information here for us to draw the conclusion that all of these people are working together in a criminal enterprise," she said. "I would not be willing to overturn anything on appeal.”