Couple charged over alleged massage parlor money scheme

Summarised from 2 outlets · Updated 14 Nov, 01:02 · Archive

A couple have pleaded not guilty to federal charges of operating an unlicensed money-transmitting business handling prostitution proceeds.

Chengxia Snelson and James Snelson have pleaded not guilty to federal charges alleging they operated an unlicensed money-transmitting business that handled proceeds from prostitution at massage parlors. They were arraigned Tuesday in federal court in Grand Rapids and released on separate $25,000 unsecured bonds.

A federal grand jury indicted the pair on one count of conspiracy to use interstate travel or facilities to distribute proceeds of unlawful activity and one count of operating an unlicensed money-transmitting business. According to the indictment, the alleged operation ran from approximately March 2023 through November 2026. Prosecutors allege money was collected from prostitution offences at massage parlors and distributed at the direction of workers and operators, with fees charged for the service.

Chengxia Snelson allegedly visited parlors in Lansing, Comstock Park, Ann Arbor and Holland, Michigan, as well as establishments in Indianapolis, Chicago and Columbus, Ohio. Prosecutors say both defendants purchased money orders in Grand Rapids in June 2025. The charges follow earlier reporting on an FBI investigation into a Lansing massage business, during which surveillance allegedly captured workers handing cash to Snelson during visits in 2025.

How it is being reported

• Two plead not guilty to federal charges in alleged massage parlor money-transfer operationTwo people have pleaded not guilty to federal charges alleging they operated an unlicensed money-transmitting business that handled proceeds from prostitution at massage parlors in Michigan and three other states.WILX · 14 Nov, 00:24
• Unsealed docs: Couple faces felonies for moving prostitution moneyA couple are facing years behind bars for allegedly helping massage parlor owners and workers move money made through prostitution, according to newly unsealed court documents.Woodtv · 13 Nov, 17:32

In this story: Chengxia Snelson · James Snelson · Michigan · Grand Rapids · Lansing · Indianapolis · Chicago · Columbus

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