S.F. sues Richmond District massage parlor, alleging illicit activity

City Attorney Dennis Hererra. City Attorney Dennis Hererra. Photo: Natasha Dangond, The Chronicle Buy photo Photo: Natasha Dangond, The Chronicle Image 1 of / 43 Caption Close S.F. sues Richmond District massage parlor, alleging illicit activity 1 / 43 Back to Gallery

San Francisco City Attorney Dennis Herrera has sued the owners of a Richmond District massage parlor, accusing them of operating a brothel.

The lawsuit, filed Tuesday in San Francisco Superior Court, was announced at the same time as a $295,000 settlement the city reached with another alleged brothel on the edge of the Financial District, ending legal action that Herrera brought in February.

The new suit accuses Paradise Health Center at 242 Balboa St. of soliciting prostitution since at least October 2012 though advertisements in places “notorious for soliciting erotic services,” according to a statement by the city attorney’s office. The ads, featuring scantily clad women in provocative poses, had been posted as recently as Sept. 29 on Backpage.com, the city attorney’s office contends.

Paradise Health has been in trouble with the city before. San Francisco’s Department of Public Health has issued numerous health code violations related to massage therapy practices, including several instances of massage practitioners not being fully clothed while working.

A representative from Paradise Health could not be reached for comment Tuesday.

In May 2016, police and public health inspectors observed one Paradise Health worker engaging in a sexual act with a customer. That incident led the health department to suspend Paradise Health’s business license for 60 days in March.

The city attorney’s office said Paradise Health continued its prostitution solicitation, however. On Sept. 15, San Francisco police conducted an undercover operation, during which a massage practitioner allegedly solicited an undercover officer for sex.

Paradise Health, which is across the street from Peter’s Place Nursery School on Balboa Street, has for years been the subject of complaints from neighbors and school parents, the city attorney’s office said. When the spa attempted to appeal its 60-day business license suspension, several school administrators and board members asked the city to uphold the suspension. Many urged city officials to revoke Paradise Health’s permit altogether.

“It is completely unacceptable to have a brothel across the street from a preschool,” Herrera said. “With this lawsuit I aim to shutter (Paradise Health) once and for all, and to hold this business and this landlord responsible.”

In addition to asking the court to close the business for a year, Herrera’s suit also seeks to prohibit the property from being used as a massage parlor. The city attorney is also seeking to bar Paradise Health’s owners, Tian Yi Zhao and Chiu Hung Paul Tam, from operating a massage parlor in the future, in addition to monetary penalties.

Lisa Tang, who oversees the family trust that owns the building, is also named in the suit. The city’s suit seeks $25,000 for allowing prostitution to occur on the premises, $2,500 for each unlawful business act and $200 for each day of city health and planning code violations.

On Tuesday, Herrera also announced his office had settled a similar suit with the landlord and business owner of the now-shuttered Queen’s Health Center at 325 Kearny St., which the city sued in February, accusing it of being a covert brothel.

Under the terms of the agreement, Queen’s Health owner Jie Qin Zhou is prohibited from managing, investing in or operating a massage parlor or other personal-service business in San Francisco for 10 years, and outside of the city for five years. Frank Iavarone, who owns the building, is also barred from leasing space to a massage parlor for 10 years.

The city accused Queen’s Health of running a brothel since at least April 2010, despite numerous investigations and administrative penalties. The business closed within a month of the city’s suit being filed.

“After Queen’s Health Center thumbed its nose at authorities for years, we were finally able to put an end to their rampant violations of the law,” Herrera said. “I’m pleased that we reached a settlement that not only shuts their doors for good, but recoups some of the city’s enforcement costs.”

Dominic Fracassa is a San Francisco Chronicle staff writer. Email: dfracassa@sfchronicle.com Twitter: @dominicfracassa