New Jersey

Spa Owner Accused of Selling Sex at Ocean City Business

Grace Li, 61, of Ocean City, New Jersey, was arrested Thursday and charged with managing a house of prostitution.

What to Know

  • The owner of a New Jersey spa is facing prostitution charges after investigators determined her business offered sex as well as massages.
  • Grace Li, 61, of Ocean City, New Jersey, was arrested Thursday and charged with managing a house of prostitution.
  • A search warrant was executed Thursday which led to Li’s arrest.

The owner of a New Jersey spa is now facing prostitution charges after investigators determined her business offered sex as well as massages.

Grace Li, 61, of Ocean City, New Jersey, was arrested Thursday and charged with managing a house of prostitution.

Ocean City police say they first received information in July regarding alleged prostitution occurring at Li’s business, the L&G Massage Spa on the 500 block of East 9th Street in Ocean City. Sources told NBC10 a customer reported to police that they were propositioned at the spa after going in for a massage.

Police investigated the spa and determined customers could purchase sexual acts from women inside the business. Officials also say two law enforcement officers were offered sex in exchange for money.

A search warrant was executed Thursday which led to Li’s arrest.

Li insisted that her business was not selling sex.

“Only body massage,” Li told NBC10. “We have license, yeah. No sex. No sex. Only body massage.”

Li’s spa is located in the heart of downtown Ocean City, a dry town which brands itself as America’s greatest family resort. News of the arrest and allegations took some people by surprise, including real estate agent Nicole Farina. 

“Our reputation speaks for itself and that certainly doesn’t help,” Farina said.

Li told NBC10 the spa is closed until at least next month. However, NBC10 observed an “open” sign that was lit up outside the business with more signage on the sidewalk. Li brought the sign inside but it later returned outside before Li removed it again.

Li is scheduled to appear in court early next month. Officials say the investigation is ongoing and more charges are possible.

If you have any information, please call the Cape May County Prosecutor's Office at 609-465-1135, the Ocean City Police Department at 609-399-9111 or send an anonymous tip to the Cape May County Crime Stoppers at 609-465-2800.

You can also report information anonymously through the Cape May County Sheriff's Tip Line.

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