April 16, 2026 (Anchorage, Alaska) – Following a year-long joint investigation, law enforcement officers from the Anchorage Police Department, Alaska State Troopers, the FBI Anchorage Field Office, and other partners executed search warrants this week at seven illicit massage parlors across Anchorage and the Matanuska Susitna Valley. The operation was carried out in close coordination with prosecutors and civil attorneys from the Alaska Department of Law as part of an ongoing investigation into suspected sex trafficking and commercial sexual exploitation.
The investigation developed after investigative leads indicated that several illicit massage businesses were operating as fronts for organized criminal activity involving the exploitation of vulnerable individuals. Over several months, investigators developed evidence that led to the execution of the search warrants and arrests of seven individuals.
FBI Agents and Anchorage Police Officers speak outside Phoenix Spa in Anchorage. Courtesy: FBI Anchorage
The seven businesses searched in connection with this investigation are: Jasmine Spa; Zen Massage; Stream Health Spa of Wasilla; Phoenix Health Spa; Owl Health Spa; Renew Day Spa; and Red House Massage of Anchorage. Two Anchorage residences were also searched as part of the operation.
As part of the operation, 72-year-old Anchorage resident Lee Van Ness was arrested on multiple charges of Sex Trafficking in the Third Degree; 34-year-old Anchorage resident Tuan Huynh was arrested on multiple charges of Sex Trafficking in the Third Degree; 54-year-old Wasilla resident Guoguo Zhang was arrested on multiple charges of Sex Trafficking in the Second and Third Degree; 53-year-old Anchorage resident Terry Volkman was arrested on multiple charges of Sex Trafficking in the Third Degree; 40-year-old New York resident Xiong Xiaotian was arrested on charges of Sex Trafficking in the Second and Third Degree; 51-year-old New York resident Hong Zhen Li was arrested on charges of Sex Trafficking in the Second and Third Degree; and 44-year-old Hui Zhang on charges of Sex Trafficking in the Second and Third Degree. All charges are being prosecuted by the Alaska Department of Law’s Office of Special Prosecutions, and additional charges may be filed as the investigation continues.
During the operation, investigators worked to identify and contact potential victims. Individuals believed to be victims were offered support services, resources, and assistance through governmental and non-profit victim service organizations. Protecting victims and holding those responsible for exploitation accountable remains a top priority.
FBI Evidence Response Team members collect and document evidence. Courtesy: FBI Anchorage
APD, AST, and FBI officials would like to thank Homeland Security Investigations (HSI), U.S. Customs and Border Protection, Army Criminal Investigation Division (Army CID), the U.S. Coast Guard, Wasilla Police Department, and the Anchorage Airport Police Department for their assistance in the investigation and operation.
If you are a victim of, or suspect, human trafficking, you can make a report to the National Human Trafficking Hotline at 1-888-373-7888 or send a text to 233733.
An Alaska State Trooper patrol vehicle is parked outside Jasmine Spa during a search warrant service.
Courtesy: Alaska State Troopers
###
The charges in this press release are only allegations and are not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the prosecution must prove guilt beyond a reasonable doubt.
