Fort Wayne Couple Arrested Following Massage Parlor Bust

A married couple has been arrested in connection with the massage parlor prostitution sting that occurred earlier this month.

John E. Laibe Jr., 59, and Xiao Lin Laibe, 56, both of 6804 Baer Road, Fort Wayne, were arrested Wednesday evening on charges of corrupt business influence, a level 5 felony, and three counts of aiding, inducing or causing prostitution, a level 6 felony. They are both being held in the Kosciusko County Jail on $10,250 bonds.

In January, Warsaw Police Department officers met with a complainant who reported possible prostitution occurring at Ying Massage, 493 Circle Drive, Warsaw. The complainant informed police that while getting a massage, the masseuse continually rubbed near and brushed his genitals. The complainant also stated the masseuse requested to “finish him off” multiple times, after he had politely declined. The masseuse left the room, and as the complainant was dressing, the masseuse returned and asked once more if she could “finish him off.”

On June 22, officers met with an individual known to frequent Ying Massage to inquire about possible prostitution occurring there. The individual visited the massage parlor that day and was greeted by an older Asian woman that spoke little English. He paid the older woman $40 and was led to a room down the hall by a younger Asian woman who was his masseuse. The individual told police he was fully nude during his massage. The masseuse allegedly fondled his genitals numerous times.
On June 30, police met with the same individual regarding the illegal encounter he experienced. The man went back to Ying Massage and asked the same older woman at the front desk for a massage, providing $50. The same masseuse, identified as Li-Lan Chu, walked him back to a room where he took off all of his clothes and sat on the massage table.

Chu started giving him a massage while he was lying on his stomach. She removed the towel that was covering and began to touch his genitals.
He told her to stop and asked her how much he owed, but she did not understand him. He gave her $40.

On July 8, police met with the individual who went back to the massage parlor. He encountered the same older Asian woman at the front desk and paid her $50, then a different masseuse walked him back to the massage room.  He asked if “Jenny” was working and her response was “Oh, you want Jenny.” The masseuse from the two earlier encounters, Chu, then entered the room. The individual told police he had a similar encounter with Chu as the previous two massages.  She continually tried to stimulate him until he asked her to stop. He asked her if she wanted the same amount as last time. She grabbed $40 out of his hand, and she left.

Also on July 8, Warsaw police met with a Fort Wayne Police Department undercover officer who specializes in massage parlor prostitution cases and briefed him on the previous complaint and encounters at Ying Massage.

The undercover officer entered the parlor the same day as the individual the WPD interviewed while he was receiving his massage. He paid the woman at the front desk $40 for a half hour massage by using a $50, then he was escorted back to a massage room for a massage.  The undercover officer’s experience was similar to that of the individual who initially contacted police.

Based on the information above, a search warrant was issued and served on July 8 at Ying Massage. Upon serving the search warrant, officers located a package addressed to Xiao Lin Laibe at her Fort Wayne address.  Officers discovered Laibe to be the “mamasan” or woman of authority at Ying Massage. During the search, Laibe was seen placing items from the business in the trunk of her car and leave the location.

Officers followed the vehicle and observed the vehicle exceeding the posted speed limit and conducted a traffic stop.  She was escorted to the Warsaw Police Department where Laibe gave officers consent to search the vehicle. From the evidence found in Laibe’s trunk, officers were able to determine she would take the initial cash payment for the massages and then would be the caretaker of the money generated by the business.

During Laibe’s interview, after advising her of her rights through the assistance of a Chinese interpreter, she waived her rights and explained the Ying Massage business. She has worked for the business for two years and is the manager. She stated she is responsible for the bills, including sending payments to the business owner who resides in China in the amount of $2,000-$2,500 each month, paying the masseuse their daily salaries and taking her own salary from earned cash. She advised she keeps the business records and tax documents at her residence located in Fort Wayne. She informed detectives she would take money from Ying Massage, place it in her personal wallet and pay her husband, John E. Laibe Jr., who allegedly completed the business transactions for Ying Massage.

John Laibe admitted he and his wife own Ying Massage. He conducts the business operation by paying the bills and filed the LLC for the business. He advised each month they send $2,500 to China, but he does not know why. Every six months they new girls from China arrive to perform the massages.