8G Consent 2015 1005 - Laserfiche WebLink

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Pursuant to San Leandro Municipal Code Section 2-2-440, the business license was revoked and ordered to cease operation within 5 days of the date of mailing the notice. The owners were advised of the right to appeal the decision by filing a written appeal within ten days of the decision, in accord with San Leandro Municipal Code Section 2-2-450. On June 24, 2015, Kenny Ma met with a Finance Department employee who explained the license revocation requirements to him. On June 25, 2015 an appeal was filed. On July 20, 2015, Lieutenant Robert McManus noticed the business was open and operating. He entered the business. He found Yan Zhang and a male patron inside the establishment. The Lieutenant requested that Yan Zhang contact the owners. Run He returned to the business location nearby and shortly thereafter Kenny Ma arrived. Mr. Ma told Lieutenant McManus it was his understanding he could continue operating while the appeal was in progress. Lieutenant McManus contacted the Finance Department employee who met with Mr. Ma on June 24, who reiterated over a speakerphone that the business should have ceased operation no later than June 24, 2015. A subsequent warrant check revealed that Yan Zhang is on federal probation from August 4, 2014 through August 3, 2019 for human trafficking/transporting people for prostitution purposes. (SL Police Report #2015-00033624) Testimony The undercover Detective and Lieutenant McManus testified to the information set forth in the two police reports. Kenny Ma testified that he disputed the events and/or the interpretation of events asserted to have occurred on January 13, 2015, but that he terminated Zhenying Liu after the incident and that he was taking steps to further control operations. A copy of Ms. Liu's Certified Massage Therapist certificate is attached to the Independent Contractor Agreement provided. Mr. Ma also testified that Yan Zhang was one of four therapists working at the business and that she had a massage therapist certification, although no copy or certification number was provided. He testified that he relied on the Certified Massage Therapist certifications and did not do any background checks of contractors/employees. Mr. Ma stated the business has been closed since the June decision and, with regard to July 20, "that day it was open it really was not open" and that the business has remained closed since July 20, 2015. Mr. Ma stated that one of the owners was always present when the establishment was open for business, but the facts noted in the police reports show otherwise. Lieutenant McManus testified that as a result of a regional law enforcement meeting on human trafficking, he became aware of a website (rubmaps.com) and that on the website he found a November 28, 2014 posting from a Green Leaf Spa customer indicating solicitation/prostitution activities occurring. The Lieutenant also found an add for Green Leaf Spa on Craigslist and the undercover Detective stated that other massage operations, such as Massage Envy, do not typically advertise on Craigslist.