Two-Year Probe Ends With Arrest Of Spa Owner

BY JEN GIBSON, Times-Union Staff Writer

A two-year investigation of a local massage parlor culminated in the arrest of a Georgia woman Monday.

Myong Suk Demorales, 52, of Lawrenceville, Ga., was arrested Monday on a Kosciusko County Circuit Court warrant on one count of corrupt business influence, one count of promoting prostitution and three counts of bribery, all Class C felonies. Demorales was detained in Georgia and will be returned to Warsaw. Her bond was set at $200,000.

Demorales managed VIP-The Office Spa in Warsaw and had ties to VIP Tanning on Coliseum Boulevard in Fort Wayne. She also has connections to similar businesses in Georgia and other states.

Although Demorales lists her actual residence as Lawrenceville, she also has an apartment in Warsaw.

Over the past year, Demorales allegedly paid approximately 15 separated bribes to Warsaw Detective Tony Faucett, who was conducting an undercover investigation, to avoid prosecution and scrutiny of her business activities. She also reportedly used the bribes to try to manipulate the ordinance and licensing requirements for herself and her employees. Faucett was assigned to monitor the proper licensing and ordinance regulations of the massage establishments as part of the Warsaw ordinance.

Monday afternoon, Warsaw police detectives, members of the Kosciusko County Drug Task Force and officers from the Fort Wayne Police Department Vice and Narcotics squad and the Gwinnett County Police Department simultaneously served search warrants in Warsaw, Fort Wayne and Georgia.

In Warsaw, officers seized business records, money, property and evidence from VIP-The Office Spa. The forfeitures of business property and proceeds also are underway.

Monday afternoon, FWPD Vice and Narcotics officers served warrants at two locations in Fort Wayne, including VIP Tanning. The investigation showed ties between VIP Tanning and VIP-The Office Spa.

At the same time, search warrants were served at Demorales’ residence in Georgia by officers from the Gwinnett County Police Department Alcohol, Tobacco and Firearm unit, Warsaw detectives and the Kosciusko County Drug Task Force.

Demorales’ Warsaw apartment also was searched as officers tried to gain information about the case.

Investigation of Demorales’ local activities continues, and forfeiture and seizure processes will begin. Injunctions also may be sought to close the business.

Video and monitoring tapes were confiscated to determine clients of VIP-The Office Spa. Police have obtained documentation of customer vehicles, license plates and photographs of people visiting this and other similar businesses over the past two years.

More charges related to money laundering and tax evasion at VIP-The Office Spa and other businesses as well as their employees continue to be investigated because of information uncovered by both local and federal officials.

The U.S. Attorney’s office and the Federal Bureau of Investigations both were involved in the investigation as well.

In July 2005, the Warsaw Common Council enacted ordinances to stop illegal activity at questionable massage businesses. VIP-The Office Spa was one of four massage establishments cited for criminal and/or ordinance violations for alleged illegal sexual activity since that time. As of February 2007, three of the establishments – Dee’s International Massage, Washington Street, Warsaw; Comfort Zone, Winona Avenue, Warsaw; and Dating Dynamics, Fort Wayne Street, Warsaw all have closed voluntarily or by court order due to violations of the ordinance.