Iowa City massage parlor owner facing prostitution, money laundering charges surrenders license

The decision comes after the former owner of Paradise Spa Junping Ren is under investigation for a $2.6 million prostitution and money laundering operation.

Ariel Kolder, News Reporter

January 28, 2026

Mitchell Brinkmeyer

The exterior of a Paradise Spa location is seen in Iowa City on Wednesday, Jan. 28, 2026. The owners of the establishments surrendered their massage therapy license after an investigation revealed a $2.6 million money laundering and prostitution operation. (Mitchell Brinkmeyer / The Daily Iowan)

Iowa City massage parlor owner Junping Ren surrendered her massage license, following charges of money laundering and prostitution.

The surrender comes after investigations by the Iowa City Police and the Department of Criminal Investigation found a $2.6 million money laundering and prostitution operation, on Sept. 24, 2025.

Junping Ren, 56, of Iowa City, surrendered her license, according to the Iowa Department of Public Health’s Bureau of Professional Licensure.

Ren and her husband, Zhenshi Liu, 60, of Iowa City, are facing multiple charges, including prostitution, pimping, money laundering, and ongoing criminal conduct.

The joint criminal investigation resulted in the arrest of three individuals accused of prostitution: Ren, Liu, and their son, Yang Liu. Yang Liu also personally laundered $1.5 million through personal accounts.

On May 1, 2025, the police department received a sexual assault report, stating the victim had been assaulted at Paradise Spa — located at 1901 Broadway St., Suite 2, in Iowa City.

According to a search warrant application affidavit, investigators spoke with workers at the spa, who said it charges $70 an hour for a massage, with $40 going to the owner, Ren. Workers had to pay Ren an additional $10 a day for room and board. Workers also reported long hours, with Ren making them work 12 hours a day, seven days a week.

The affidavit also noted investigators reviewed the spa’s banking records and identified behavior and transactions suggestive of money laundering. These included nearly $500,000 in electronic payments from the business account to an escrow — neutral third party that temporarily holds funds — account, a $20,000 wire transfer to the Bank of China, transfers to other business checking accounts, large cash withdrawals, and periodic substantial cash deposits.

No transactions out of the business’s accounts were located that would be consistent with employee payroll or other normal business transactions.

According to the court documents filed Wednesday, Yang Liu denied operating a business in which illegal sex acts occurred and denied using the proceeds to purchase property in both Alabama and Iowa.

Under Iowa Code, all of the family’s properties purchased with laundered money were seized.