5 Shocking Revelations From The FBI Operation That Shut Down Rotterdam's 'Moon Spa' Prostitution Ring

The quiet town of Rotterdam, New York, was thrust into the national spotlight on a Wednesday in August 2025, when a massive joint federal and local law enforcement operation descended upon a seemingly innocuous local business. What began as a local tip-off culminated in a sweeping FBI operation that exposed an alleged multi-county prostitution and racketeering enterprise operating under the guise of legitimate massage parlors, most notably the Moon Spa. This high-profile bust has sent shockwaves across the Capital Region, highlighting the dark reality of commercial sex operations hidden in plain sight.

The investigation, spearheaded by the FBI’s Albany Field Office and its specialized task forces, targeted multiple locations simultaneously, signaling the seriousness and breadth of the alleged criminal network. The sheer scale of the operation—involving raids across at least five New York counties—underscores the commitment of federal authorities to dismantle organized prostitution and potential human trafficking rings that exploit vulnerable individuals for profit. The subsequent arrest of the alleged ringleader has provided a rare glimpse into the sophisticated logistics of these illicit businesses.

The Alleged Ring Leader: Qingqin Xie's Profile and Federal Charges

The center of the federal investigation is Qingqin Xie, a Rotterdam woman who allegedly masterminded the sprawling criminal enterprise. Xie, known by the alias "Coco," was arrested following the coordinated raids and faces serious federal charges related to the operation.

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• Full Name: Qingqin Xie
• Alias: "Coco"
• Residence: Rotterdam, New York
• Alleged Role: Ringleader, promoter, and manager of a multi-county prostitution enterprise.
• Key Businesses Targeted: Moon Spa (Rotterdam, East Greenbush) and Everyday Health Center (Colonie, Albany, Waterford), among others.
• Legal Status: Described in federal complaints as being in the United States "illegally."
• Primary Federal Charge: Racketeering (allegedly running a continuing criminal enterprise).
• Other Charges: Promoting and managing a prostitution business.
• Interrogation Detail: Following her arrest, Xie was interviewed at a State Police barracks where, through a Mandarin interpreter, she allegedly admitted to opening spas and selling them, a common tactic in organized prostitution rings.

The charges against Xie are not minor. Racketeering, often associated with organized crime, indicates a pattern of illegal activity conducted through a criminal enterprise. The federal focus on this charge elevates the case beyond simple local prostitution arrests, suggesting a sophisticated, long-running operation that spanned the Capital Region and beyond. The scope of the ring allegedly reached from Ulster County all the way up to the areas surrounding Schenectady County.

The Coordinated Takedown: A Multi-County FBI Blitz

The operation, which law enforcement had been meticulously planning for months, involved a massive deployment of personnel from various agencies. The coordinated nature of the raids was essential to prevent the destruction of evidence and to secure all locations simultaneously. This level of coordination is a hallmark of major federal investigations targeting organized crime.

Law enforcement agencies involved included the Federal Bureau of Investigation (FBI) Albany Field Office, the New York State Police, the Rotterdam Police Department, the Colonie Police Department, and other local agencies. The collaboration highlights the critical role of local police in supporting federal efforts to combat crimes that cross jurisdictional boundaries.

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The raids targeted not just the Moon Spa in Rotterdam, but also other storefronts in neighboring towns. These locations, which appeared to be legitimate massage businesses, were allegedly fronts for commercial sex acts. The FBI’s Child Exploitation Task Force was also involved, suggesting that the investigation may have initially been linked to or expanded to include potential concerns of human trafficking or the exploitation of minors, though the primary public charges focused on prostitution and racketeering.

Key Evidence Seized and the Business Model Exposed

During the raids, agents and officers secured crucial evidence that reportedly detailed the inner workings of the alleged prostitution ring. The type of evidence seized paints a clear picture of a highly commercialized and well-managed illicit operation, rather than a loose collection of independent workers.

• Financial Records: Large amounts of cash were seized, suggesting significant, untaxed profits from the commercial sex acts.
• Contraband: Condoms were reportedly found at the locations, confirming the nature of the services being offered.
• Surveillance Equipment: The discovery of surveillance equipment suggests a high degree of operational security and an attempt to monitor both customers and employees, which is often a red flag for organized rings.
• Clientele and Employee Data: It is highly likely that phones, computers, and appointment books were seized, which would contain a wealth of information on clientele, the movement of workers, and the financial structure of the enterprise.

The business model allegedly employed by Qingqin Xie was one of a rotating network. Reports suggest that workers were moved between the various spas—including Moon Spa and Everyday Health Center—across the five counties to maximize profits and avoid detection by local law enforcement. Xie's alleged admission that she "opens spas and sells them" points to a deeper layer of criminal activity, potentially involving the trafficking or sale of these illicit businesses as going concerns.

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The Broader Implications: Prostitution, Racketeering, and Human Trafficking

The "FBI Operation Rotterdam Massage Parlor" is more than just a local prostitution bust; it is a significant federal action against a form of organized crime. The use of the racketeering charge suggests that prosecutors believe they can prove a sustained pattern of illegal activity, which carries much heavier penalties than misdemeanor prostitution charges.

The involvement of the FBI’s Child Exploitation Task Force, even if the primary charges are not human trafficking, underscores the close link between these types of enterprises and the broader world of sexual exploitation. In many similar cases across the United States, operations disguised as massage parlors are found to involve vulnerable individuals, often foreign nationals, who are coerced or trafficked into the sex trade. The federal investigation is likely scrutinizing all aspects of the operation to determine if any elements of human trafficking were present, which would lead to additional, more severe charges.

What Happens Next: Legal Proceedings and Community Response

As of the current date, the legal process for Qingqin Xie is underway. Given the federal nature of the charges and the complexity of the alleged racketeering enterprise, the case is expected to be a lengthy and high-profile one. Federal prosecutors will be working to build their case using the substantial evidence seized during the August 2025 raids. The outcome of this case will have significant implications for how similar operations are prosecuted in the future across New York State.

The community response in Rotterdam and the wider Capital Region has been one of shock and relief. Residents expressed surprise that such an extensive criminal network could operate so openly in their neighborhoods. The successful operation, however, serves as a powerful deterrent and a clear message from law enforcement that these types of hidden criminal enterprises will be aggressively pursued and dismantled, regardless of their deceptive storefronts. The investigation remains active, and authorities have urged anyone with further information on the alleged prostitution ring to come forward to assist the ongoing federal inquiry.