CROWN POINT — Lake County Prosecutor Bernard Carter has formally requested the Indiana State Police investigate missing evidence connected to a 2023 human trafficking and prostitution investigation involving Jade Massage Parlor in Winfield.
According to a press release issued Tuesday, investigators discovered that approximately $97,014.37 seized during the November 1, 2023 raids was not properly secured. Authorities now believe roughly $33,540.51 remains unaccounted for.
Carter stated the Indiana State Police have been asked to conduct an independent investigation into the disappearance of the money and determine whether any criminal wrongdoing occurred involving the handling of evidence.
“The public must have confidence that evidence collected in criminal investigations is handled lawfully, transparently, and with integrity,” Carter said in the release. “Any allegation involving the mishandling or theft of evidence by a law enforcement officer is extremely serious.”
The alleged missing evidence stems from a lengthy multi-agency investigation led by the Winfield Police Department into allegations of prostitution, human trafficking, money laundering, and tax-related crimes tied to Jade Massage Parlor at 9001 E. 109th Avenue in Winfield and related businesses in Crown Point.
According to a probable cause affidavit filed in the original case, investigators began receiving complaints in early 2023 alleging sexual services were being offered in exchange for money at Jade Massage Parlor. The investigation eventually expanded to include another massage business, Relax Massage in Crown Point, along with two restaurants allegedly connected to the same owners.
Court records allege undercover officers were repeatedly offered sexual acts for money by workers inside both massage parlors.
Authorities alleged the businesses were owned and operated by Wujiao Liu and Guan Yu, who investigators claimed profited from the illegal activity while also underreporting cash income and failing to properly remit sales taxes.
Investigators further alleged female workers lived inside the massage parlors under poor conditions, worked long hours, and were financially dependent on the owners. One worker allegedly told investigators she worked seven days a week for low wages and relied on tips from sexual services to survive.
Search warrants were executed November 1, 2023 at five locations, including Jade Massage in Winfield, Relax Massage in Crown Point, two associated restaurants, and a Crown Point residence linked to the owners.
During the raids, investigators seized large amounts of cash, financial ledgers, condoms, and other evidence. According to the affidavit:
- More than $15,000 in cash was recovered from Jade Massage.
- Approximately $70,000 in cash was seized from the Crown Point residence.
- Investigators also recovered handwritten ledgers allegedly documenting profits, employee earnings, and rent payments charged to workers living inside the businesses.
The affidavit additionally alleged investigators uncovered evidence suggesting cash from the businesses may have been laundered through casino activity at Hard Rock Casino Northern Indiana. Investigators claimed casino records showed Wujiao Liu conducted hundreds of thousands of dollars in cash buy-ins while allegedly leaving the casino with chips on numerous occasions.
The Lake County Prosecutor’s Office emphasized Tuesday that the criminal investigation into the massage parlors and any related prosecutions remain separate from the newly announced investigation into the alleged missing evidence.
“This request is about accountability,” Carter stated. “The citizens of Lake County deserve answers regarding what happened to this evidence and where this money is today.”
Indiana State Police are now expected to lead the investigation into the missing funds. No criminal charges related to the missing evidence have been announced at this time.
