City Attorney shuts down brothel fronting as a massage parlor

SAN FRANCISCO, CA (January 6, 2026) — City Attorney David Chiu announced today that he secured a $275,000 settlement that shuts down Empire Relaxation Spa, an unpermitted massage parlor that operated as a brothel. The first stipulated injunction prohibits the owner of Empire Relaxation Spa from owning, managing, or working at a massage or personal services business in California for 10 years. A second stipulated injunction prohibits the property owners from using, or allowing tenants to use, the property as a massage business or as a relaxation spa for 10 years. In July 2025, City Attorney filed a lawsuit against the property owners and business owner of Empire Relaxation Spa for permitting prostitution at the establishment.

“Empire Relaxation Spa was blatantly operating as a brothel, and was an ongoing nuisance for the surrounding community,” said City Attorney Chiu. “The conditions in the facility were unsettling due to various health and safety violations, and it was apparent that sex workers were living in those conditions. The business and property owners ignored numerous notices of violations from City departments. I’m glad this illegal business with its countless health and safety issues is no longer operating, and the owners will be held accountable.”

“This case exemplifies just how important San Francisco Department of Public Health inspections are to the health and well-being of our communities,” said SFDPH Environmental Health Branch Acting Director Jen Callewaert. “We take pride in protecting the public and will continue to work tirelessly to keep San Franciscans safe.”

Background
Empire Relaxation Spa, formally known as Empire Massage, was a business located at 428 O’Farrell Street in Union Square. Since at least May 2019, the San Francisco Police Department (SFPD) and the Department of Public Health (DPH) conducted several undercover operations at Empire Relaxation Spa and observed numerous violations of state and local law.

In May 2019, a masseuse at Empire Massage offered an undercover SFPD officer sexual services in exchange for money. In July 2019, DPH revoked Empire Massage’s massage permit. The business owner, Ricky Lee, then registered “Empire Relaxation Spa” as a business at the same address. The business still did not have a permit to provide massage services. DPH conducted a decoy operation in February 2020 at Empire Relaxation Spa. The decoy was offered a massage and DPH notified the property owners of the illegal activity.

In April 2024, an individual filed a police report with SFPD alleging that he was a victim of sexual battery. He reported that he visited Empire Relaxation Spa, and a masseuse offered him sexual services then touched his genitals without permission.

In February 2025, DPH found online advertising for massage services at Empire Relaxation Spa, so a DPH decoy entered the business and observed a room of women in lingerie. One woman offered to allow the decoy to massage her while she made sexually suggestive hand gestures. The DPH decoy left, and DPH immediately conducted an inspection. DPH observed various massage tables and materials, lack of human trafficking information as required by law, an apparent used condom on the floor, and unpermitted residential use. DPH also found cleanliness and hygiene violations including rodent droppings, an unsanitary towel warmer, and deteriorating massage tables without proper vinyl coverings. DPH notified Empire Relaxation Spa’s business owner, Ricky Lee, of the 15 violations uncovered during their inspection.

In March 2025, DPH issued a Notice of Determination against Ricky Lee to abate the violations, cease illegal activities, and pay administrative penalties. DPH also issued a Notice of Violation against the property owners for the violations. During a re-inspection in April 2025, DPH found some violations abated, but the operation as a massage establishment without a permit as well as other violations persisted. In May 2025, the San Francisco Planning Department issued a Notice of Enforcement against the Defendants for additional violations.

Despite these notices, an undercover SFPD officer entered Empire Relaxation Spa and requested a massage in June 2025. During the massage, a masseuse touched the officer’s genitals without consent and told the officer it was $120 “for everything.”

On July 11, 2025, the City Attorney filed a lawsuit alleging the defendants violated local and state health and safety codes, multiple municipal codes, California’s Unfair Competition Law, California’s Red Light Abatement Law, and created a public nuisance that endangered the health and safety of employees and the public. Empire Relaxation Spa shut down later that month.

On December 18, 2025, the San Francisco Superior Court approved a stipulated judgment and injunction that required Ricky Lee to pay the City $200,000 and refrain from owning, managing, or working at a massage or personal services business in California for 10 years. The Court also approved a second injunction that required the property owners to abate remaining code violations at the property, and refrain from using, or allowing tenants to use, the property as a massage business or as a relaxation spa for 10 years. The property owners also settled with the City for $75,000 in fees and penalties.

The case is City and County of San Francisco and the People of the State of California v. Ricky A. Lee, et al., San Francisco Superior Court, Case No. CGC-25-627159. View court orders.