Mr Tom Lewis, Team Leader for Licensing and Safety, Environmental Health informed members the application before them was to consider the revocation of a Special Treatment licence for Cheng Xiang Chinese Medicine Limited trading as Health One, 66 Middlesex Street, London E1 7EX.

He said the revocation was sought following the successful prosecution of the Licence Holder at Thames Magistrates Court on the 19^th June 2018. He referred Members to points 3.1, 3.2 and 3.3 of the report which gave further details of the circumstances for which a Special Treatment Licence is required. Mr Lewis also referred Members to point 4.4 which listed the grounds for revocation, as per the London Local Authorities Act 1991.

Amran Ali, Health and Safety Officer provided Members with a detailed account of the investigation he had undertaken. He said the team had conducted covert surveillance of premises with Special Treatment licences and had employed a test purchasing company to conduct test purchases. The table at 8.2 of the report, showed the number of visits made in the last 24 months. Mr Ali stated the first test purchase was carried out on the 7^th June 2017 followed by another on the 23^rd June 2017. He said the test purchasers were two different individuals who were both offered services of a sexual nature at the end of the massage.

Mr Ali stated the Licence Holder was prosecuted at the Thames Magistrates Court on the 19^th June 2018, on which occasion the defendant pleaded not guilty to breaching the conditions of the licence.  The Court found Cheng Xiang Chinese Medicine Limited guilty of breaching the conditions of the licence by allowing the premises to be used for purposes other than to carry out special treatments. They were fined £1250 for the breach of the licence together with costs of £2000  totalling £3,375.

Mr Ali stated the Licensing Authority hoped the Licence Holder would have learnt lessons from the prosecution, however when a further test purchase was conducted on the 26^th July 2018, it was evident the Licence Holder continued to breach the terms of the Licence by offering services of a sexual nature.

Furthermore, the Licencing Authority received a complaint on the 14^th August 2018 which provided further evidence of the misuse of the premises. The evidence was from a website called UKpunting. Mr Ali drew the attention of Members to an entry made on the 16^th July 2018 which included references to sexual services being received by customers of the premises Health One, 66 Middlesex Street, London E1 7EX.

Mr Ali said the Licence Holder, Mr Haijun Zuo and Ms Xiaoli Song were listed as the Directors of business and the application for the Licence showed Mr Zuo and Ms Song as the persons responsible for managing the business. Mr Ali stated it was evident that both individuals had failed to conduct and manage the business in a fit and proper manner by running a brothel business whilst masquerading as a massage parlour. Mr Ali continued stating the Licensing Authority had concerns of illegal human trafficking of vulnerable individuals, especially young women, prostitution and money laundering as well as public health concerns of sexually transmitted diseases.

Mr Ali asked Members of the Licensing Committee to revoke the Licence based on the evidence before them.

Mr Haijun Zuo, the Licence Holder was also present at the meeting. Mr Zuo stated his understanding of English was not particularly good but in defence said that he could not always control staff and their behaviour. He said the licensing conditions were displayed on the wall and staff had been told not to offer extra services. He said the therapist was dismissed when he received the letter from the Council.

Members of the Committee asked questions in relation to the application and in response the following was noted:

·         Two massage therapists were employed by Health One, but on further questioning Mr Zuo stated four were employed.

·         Mr Zuo said he could not control his staff nor could he enter the therapy rooms as the clients would not like this and what happened in there was private.

·         After the prosecution, the staff member was dismissed however the new staff member also broke the law, as per the test purchase of 26^th July 2018.

·         Mr Zuo said had he known he would be questioned he’d have brought his solicitor. He said the letter sent to him did not make clear that he would be questioned. The Legal Officer asked to see the letter and said it was clear the letter set out the reason for the hearing and it was for Mr Zuo to instruct a solicitor.

·         Mr Zuo said he would like to give up the licence. The Legal Officer asked if he understood that this meant and Mr Zuo said he no longer wanted a licence.

Members adjourned the meeting at 19:07 hours for deliberations and reconvened at 19:20 hours.

Decision

Accordingly, the Committee unanimously

RESOLVED

That the Application for the revocation of a Special Treatment Licence, under the London Local Authorities Act 1991 for Cheng Xiang Medicine Limited trading as Health One, 66 Middlesex Street, London E1 7EX be REVOKED :

1.    As the licence holder has been found to have improperly conducted its business on 7^th June 2017, 23^rd June 2017 and 26^th July 2018 as per the test purchase evidence, in breach of Regulation 7 (b) (Appendix 2) and:

As per paragraph 4.4 of the report the following grounds for revocation applied:

(c)        the persons concerned or intended to be concerned in the conduct or management of the premises used for special treatment could be reasonably regarded as not being fit and proper persons to hold such a license;

(e)       the premises have been or are being improperly conducted.