A routine compliance inspection by Florida health authorities has led to a criminal investigation and arrest at a massage business in Fort Walton Beach, bringing renewed scrutiny to a cluster of similar establishments previously flagged by law enforcement. The case centers on Xuemei Zhao, who was taken into custody after a Department of Health inspector allegedly observed sexual activity during an inspection at New Magnolia Spa.
The incident has prompted a joint investigation involving local police, health officials, and federal immigration authorities, while also drawing attention to a separate and unusual arrest at another massage parlor in the city just one day earlier. Together, the cases highlight ongoing enforcement efforts targeting unlicensed massage operations and alleged illegal activity within certain businesses operating under changing names.
Inspection at New Magnolia Spa and Arrest of Xuemei Zhao
According to the Fort Walton Beach Police Department, the events leading to Zhao’s arrest unfolded on the morning of Jan. 14, when officers from the Florida Department of Health were conducting a routine compliance inspection at New Magnolia Spa, located at 8 Racetrack Road NW. Such inspections are intended to ensure massage establishments are operating within state regulations, including licensing requirements for both businesses and individual practitioners.
During the inspection, a Department of Health officer reportedly entered one of the spa’s rooms and observed what appeared to be sexual activity taking place. Based on this observation, the inspector contacted the Fort Walton Beach Police Department and requested assistance. Police officers responded to the scene and assisted with the continued inspection of the establishment.
In a release summarizing the incident, police stated that officers observed a white male lying on his back, nude and uncovered, inside one of the rooms. Xuemei Zhao was also reportedly nude at the time officers entered. The man provided a statement to law enforcement alleging that he had been offered unprotected sex in exchange for cash. This statement formed part of the probable cause used by officers in determining further action.
Zhao was arrested and charged under Florida Statute 456.065(2)(d)1, which relates to unlicensed massage work. Under Florida law, practicing massage therapy without the appropriate state license is a criminal offense, regardless of whether additional illegal conduct is alleged. In this case, police focused on the licensing violation as the primary charge at the time of arrest.
In addition to the criminal charge, Zhao was placed on an Immigration and Customs Enforcement detainer, commonly referred to as an ICE hold. An ICE detainer requests that local law enforcement agencies hold an individual in custody for a period of time after they would otherwise be released, allowing federal immigration authorities the opportunity to assume custody. Police confirmed that Zhao had an ICE hold placed on her following the arrest.
Another woman present at New Magnolia Spa during the inspection was also taken into custody and placed on an ICE detainer. Authorities have not released the identity of the second woman, and no additional criminal charges were detailed in police statements at the time of reporting.
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The Fort Walton Beach Police Department indicated that the case remains under investigation by its Special Investigations Unit, working in coordination with the Department of Health. Officials have not publicly stated whether additional charges related to prostitution or solicitation may be pursued, noting that investigations of this nature often involve further review of evidence and witness statements.
Legal Context and Enforcement of Massage Licensing Laws
Florida maintains strict regulations governing massage establishments and practitioners, enforced primarily through the Department of Health. Massage therapists are required to obtain individual licenses, while businesses must also be properly registered and subject to periodic inspections. These regulations are designed to protect public health and safety, ensure professional standards, and prevent illegal activity from occurring under the guise of legitimate therapeutic services.
Unlicensed massage work is treated seriously under state law. Florida Statute 456.065 outlines penalties for unlicensed activity in professions regulated by the Department of Health, including massage therapy. Violations can result in criminal charges, fines, and potential jail time, depending on the circumstances and whether prior offenses exist.
In recent years, law enforcement agencies across Florida have increased scrutiny of massage businesses suspected of operating as fronts for illegal activity. Compliance inspections often serve as the initial point of contact, allowing health inspectors to identify violations ranging from sanitation issues to licensing discrepancies. When inspectors encounter suspected criminal conduct, such as sexual activity for hire, they are required to notify local law enforcement.
The involvement of ICE detainers in cases like Zhao’s reflects another layer of enforcement that can arise when individuals are believed to be in the United States without lawful status. While local police departments do not enforce immigration law directly, they may cooperate with federal authorities by honoring ICE detainers under certain circumstances. The placement of such detainers can significantly affect the legal trajectory of a case, as individuals may face immigration proceedings in addition to state criminal charges.
Authorities have emphasized that inspections and subsequent arrests are focused on compliance with the law rather than targeting specific communities. However, cases involving massage parlors frequently raise broader policy questions regarding human trafficking, labor exploitation, and the challenges of regulating an industry that has been repeatedly linked to illegal activity in certain regions.
Related Arrest at Palms of Emerald Coast and Ongoing Investigation
The arrest of Xuemei Zhao came just one day after a separate incident involving another massage business in Fort Walton Beach, further intensifying law enforcement attention on the local industry. On Jan. 13, Fang Wang was arrested at Palms of Emerald Coast Massage Parlor, located at 139 Beal Parkway SE, Suite 102, following an encounter with a Department of Health inspector.
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According to police reports, the inspector was conducting a routine inspection at the Palms of Emerald Coast location around 12:28 p.m. when Wang allegedly became upset and began yelling at the inspector. Police stated that Wang attempted to force the inspector out of the business, prompting officers to intervene. When officers attempted to detain her, Wang allegedly engaged in behavior intended to evade arrest, including defecating toward officers, according to the police account.
Wang was arrested and charged with battery on a specified official, a serious offense under Florida law that applies when an individual is accused of battering certain protected officials while they are performing their duties. Police did not indicate whether additional charges were being considered in connection with the incident.
The Palms of Emerald Coast investigation was described by police as a follow-up to previous enforcement actions at the same physical location when it operated under different business names. Authorities stated that the site had previously been known as Blue Bay Massage & Spa, New Magnolia Spa, and Classy Spa. Wang was reportedly present during each of those earlier investigations, suggesting a pattern of repeated regulatory scrutiny tied to the same address.
This history of name changes and repeated inspections has been cited by law enforcement as a tactic sometimes used by noncompliant businesses to evade sustained oversight. By rebranding under new names, establishments may attempt to distance themselves from prior violations or enforcement actions, though investigators often track locations and individuals rather than relying solely on business names.
The Fort Walton Beach Police Department confirmed that its Special Investigations Unit is actively investigating both the New Magnolia Spa case involving Zhao and the Palms of Emerald Coast case involving Wang. Officials expressed appreciation for the Department of Health’s role in identifying potential violations and coordinating with law enforcement. As of the latest information released, both cases remain under investigation, and authorities have not announced whether additional arrests or charges are expected.
Police have indicated that further details will be released as investigations progress and as prosecutorial decisions are made. The twin incidents, occurring on consecutive days, have underscored the challenges faced by regulators and law enforcement in monitoring massage establishments and enforcing compliance with state laws. They also reflect a broader enforcement effort aimed at addressing unlicensed practice, alleged illegal conduct, and repeated violations associated with certain locations within the city.