Waukesha prostitution, money laundering ring; 2 spas shut down

Waukesha prostitution, money laundering; 2 spas shut down

Waukesha police are investigating an intricate money laundering and prostitution operation in the city. Two spas are now closed, after complaints of sex acts.

WAUKESHA, Wis. - Waukesha police are investigating an intricate money laundering and prostitution operation in the city. Two spas are now closed, after complaints of sex acts. 

Court documents show the activity had been going on for months. Police tell FOX6 News arrests have been made, but criminal charges have not yet been filed. Because of that, we will not name any of the suspects involved. 

Waukesha spas closed

What we know:

Weeks after the Yuan Yuan Spa closed across the hall, neighbor Carol Garuz said male customers kept coming. 

Yuan Yuan Spa, Waukesha

 "Not everyone got the memo," Garuz said. "Never did we ever see a female client or patron."

FREE DOWNLOAD: Get breaking news alerts in the FOX LOCAL Mobile app for iOS or Android

Garuz said Waukesha police and the Department of Justice raided the business on Jan. 21. 

"They had found a gentleman inside with just a towel on," Garuz told FOX6 News. 

Search warrants executed

Dig deeper:

Days later, FOX6 News obtained multiple search warrants for "Yuan Yuan Spa" on Grand, and another business, "Seven Days Spa" on Silvernail. Both were leased by the same woman. Waukesha police detailed "illicit activity" at both locations. 

In May 2025, investigators said a man went to Seven Days Spa for a massage when an "Asian female in her 60s" started rubbing his shoulder and later offered to perform a sex act for cash. The customer told the building's owner, who then called police. 

Court documents reveal both spas were listed on a prostitution website with ads for female escorts. 

Seven Days Spa, Waukesha

Police tracked a man from Chicago, who made dozens of trips to the spa and was seen "dropping off or picking up Asian females from the business." Investigators believe tens of thousands of dollars were exchanged. 

SIGN UP TODAY: Get daily headlines, breaking news emails from FOX6 News

Garuz said workers would bring her expensive gifts, like designer perfume, and only communicated through the translator app on their phone. She complained to the building's landlord, and later to police. 

"We had suspected all along that it wasn’t a legitimate spa," Garuz said. 

What's next:

Police would only say they will turn over their findings to the Waukesha County District Attorney's Office. FOX6 News asked if federal investigators are also involved, but did not hear back.