8G Consent 2015 1005 - Laserfiche WebLink

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Findings 1. When the business license was applied for in July 2014 the owners stated "massage therapy, foot reflexology, pain relief" as the activities to be engaged in. The business was identified as a partnership, with two owners and no employees. It was noted that both owners were Certified Massage Therapists and their certification numbers were provided, He #52349, Ma #56589. (A check on the Certified Massage Therapy Council's website on September 17, 2015, indicated that both certifications are active.) 2. Both He and Ma signed the Certification and Acknowledgment on the business license application affirming the statements on the application were true and that the business would be conducted in accordance with the San Leandro Municipal Code. 3. Mr. Ma testified that all the therapists were Certified Massage Therapists and operated under independent contractor agreements. A copy of the Independent Contractor Agreement executed by Zhenying Liu and Kenny Ma had attached to it a copy of Ms. Liu's Certified Massage Therapist certificate. (A check on the Certified Massage Therapy Council's website on September 17, 2015, indicated that Ms. Liu's certification was active.) 4. It is doubtful the IRS would recognize the therapists as independent contractors or conclude they are employees, based upon the language of the contract and the manner in which Green Leaf Spa conducted business operations. 5. Mr. Ma terminated Zhenying Liu immediately after the January 13, 2015 incident. 6. Section 1-12-115 of the San Leandro Municipal Code says in relevant part "A violation of this Code, including any continuing violation as set forth in Section 1-12-140, below, is hereby declared to be a public nuisance." The original undercover operation on January 13, 2015 was due to a complaint of a likely public nuisance and the investigation found violations of the San Leandro Municipal Code. 7. Section 1-12-120 of the San Leandro Municipal Code says in relevant part "It shall be a violation of this Code to violate any term or condition of any license, permit, agreement, or approval granted or issued pursuant by the City,... Any person, whether as principal, agent, employee or otherwise, violating or contributing to the violation of any such term or condition shall be subject to the sanctions provided in this Chapter or any other law." Numerous facts were not refuted; provisions of the San Leandro Municipal Code were violated and sanctions may be imposed by the City. 8. Section 2-2-300 and Section 2-2-315 of the San Leandro Municipal Code respectively provide that a business license is required before operating a business in the City of San Leandro and that licenses expire every year on December 31. As noted in Police Report #2015-00002106 and testified to by the Detective, the business license provided by Run He on January 13, 2015 was expired (the 2014 license). 9. Section 647(b) of the California Penal Code defines prostitution as including "any lewd act between persons for money or other consideration." A "lewd" act is defined as any act that involves touching the genitals, buttocks, or female breast of another person with the specific intent to arouse or gratify someone sexually. The actions of Zhenying Liu described by the undercover Detective were lewd acts and were done with the expectation of monetary gain.