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Investigation into massage parlors in Alaska leads to arrests on felony sex trafficking charges

By: Haley Lehman, Alaska Beacon

An FBI Evidence Response Team collects and documents evidence at an alleged illicit massage parlor. (Image Courtesy of the FBI Anchorage Field Office)

Multiple law enforcement agencies arrested seven people in Anchorage and the Matanuska-Susitna Valley last week on charges of sex trafficking after a yearlong investigation found that multiple massage parlors were fronts for criminal enterprises.

“Human trafficking criminal enterprises operate in plain sight while victims are exploited for labor, services and commercial sex acts through force, fraud or coercion,” Matthew Schlegel, special agent in charge of the FBI Anchorage Field Office, said during a press conference Thursday.

Anchorage Police Department, Alaska State Troopers, the FBI Anchorage Field Office are part of a task force that investigates sex and human trafficking. Homeland Security Investigations, U.S. Customs and Border Protection, Army Criminal Investigation Division, the U.S. Coast Guard, Wasilla Police Department and the Anchorage Airport Police Department assisted in the investigation.

Officers searched Jasmine Spa, Zen Massage, Stream Health Spa of Wasilla, Phoenix Health Spa, Owl Health Spa, Renew Day Spa, Red House Massage of Anchorage and two Anchorage residences in connection with the investigation.

Law enforcement arrested Lee Merrill Van Ness, 72, of Anchorage, Terry Allen Volkman, 53, of Anchorage, Hui Zhang, 44, Hong Zhen Li, 51, of New York, Guoguo Zhang, 54, of Wasilla, Tuan Huynh, 34, of Anchorage, and Xiaotian Xiong, 40, of New York, on felony charges of sex trafficking.

Investigators collect evidence during an investigation into alleged illicit massage parlors. (Image courtesy of the Alaska State Troopers)

Alaska State Troopers Colonel Maurice Hughes said during a press conference Thursday that they targeted these illegitimate operations because they were exploiting individual and vulnerable adults. 

Hughes said that the victims were offered support and connected with resources.

“These individuals were not the focus of the investigation. They were the reason for the investigation,” he said.

Law enforcement identified massage parlors that advertised commercial sexual services online during the investigation. The investigation entailed undercover officers visiting various massage parlors and posing as customers looking for sex in exchange for money, a criminal complaint stated. Law enforcement allege that the seven people arrested harbored victims of human and sex trafficking and forced them to pose as masseuses.

The massage parlors may be linked to international organized crime organized out of Flushing, New York, and Monterey Park, California, according to charging documents. Law enforcement may file additional charges as the investigation continues.

Anchorage Police Chief Sean Case attributed the length of the investigation to the complex nature of the allegations.

Alaska Bureau of Investigation Commander Tony Wegrzyn said that investigators have “a mountain of evidence to go through.”

According to Wegrzyn, all victims were from outside of Alaska.

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Federal indictments, multiple arrests made in Juneau drug trafficking case

Seven people have been indicted and arrested in connection with a large-scale drug trafficking operation that funneled methamphetamine into Juneau from California, following a months-long investigation by state and federal law enforcement agencies, according to a press release by the Juneau Police Department.

Beginning in October 2024, Task Force Officers from the Alaska State Troopers’ Statewide Drug Enforcement Unit (SDEU) and Southeast Alaska Cities Against Drugs (SEACAD), working with the U.S. Postal Inspection Service (USPIS), launched an investigation into a drug trafficking organization operating out of Juneau.

The initial investigation began when task force members obtained evidence that showed that 41-year-old Juneau residents Patrick Iler, and 39-year-old Juneau resident Erika Porter were involved with the distributing methamphetamine throughout Juneau. 46-year-old Juneau resident Timothy Miller was identified as a distributor of methamphetamine working with Iler and Porter in Juneau.

Over the course of the investigation, law enforcement seized a combined 1.32 kilograms of methamphetamine, with an estimated street value of $130,000.

Investigators traced one of the drug sources to Highland, California. In May 2025, Alaska-based task force officers traveled to California and arrested 67-year-old Kinarla Miles, who is accused of supplying methamphetamine to the Juneau network.

Three other Juneau residents, 51-year-old Jerome Larue, 38-year-old Travis Lind, and 60-year-old Edie Seslar, were also arrested as co-conspirators.

Authorities estimate the drug ring distributed approximately 7 kilograms of methamphetamine in total, with an approximate street value of $700,000.

In May 2025, the U.S. Attorney’s Office in Anchorage indicted Miles, Larue, Lind, and Seslar on charges of drug conspiracy, money laundering conspiracy, and possession with intent to distribute controlled substances.

In July 2025, additional indictments were filed against Miller, Porter, and Iler for drug conspiracy and possession with intent to distribute methamphetamine. Porter and Miller were arrested in Juneau on July 23 and 24 and booked into Lemon Creek Correctional Center on federal warrants.

The investigation is ongoing and involves coordination between the Alaska State Troopers, USPIS, and the U.S. Attorney’s Office in Anchorage.