Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Spa Castle To Pay $2.5 Million For Tax Fraud
By
Claire Lampen
Published Aug 24, 2018
Modified Aug 24, 2018
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Spa Castle
By
Claire Lampen
Published Aug 24, 2018
Modified Aug 24, 2018
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Your favorite "sex spa" was ordered to reimburse the state millions of dollars Thursday after pleading guilty to felony tax fraud.
According to a statement from New York Attorney General Barbara Underwood's office, Spa Castle will pay $2.5 million after purposefully underreporting its substantial income. Corporate officer Daniel Chon, meanwhile, avoided a jail sentence with three years of conditional discharge. As his lawyer, Michael Weinstein, told the NY Post, Chon "accepted responsibility for tax deficiencies from many years ago," but admitted to only one of the many charges filed against him: Trying to dodge sales tax repayments to the state.
"We have zero tolerance for tax cheats who leave New Yorkers to foot the bill," Underwood said in the statement. "The defendants orchestrated a multi-million dollar scheme to defraud taxpayers. We're grateful to the whistleblower who helped bring this egregious conduct to light—and it should serve as a wake-up call to all tax fraudsters who think their misconduct will go by unnoticed."
Spa Castle, a hulking mega-bathhouse located in College Point, Queens, charges $50 for weekend admission, plus extra fees for access to its spa treatment menu. According to the AG, it raked in $22 million between 2010 and 2013, but dodged sales, corporate, and MTA tax payments. As Underwood mentioned, an informant filed a complaint against the super spa under the New York False Claims Act in 2014, prompting the AG's office to open an investigation. In 2017, the state hit Chon and his brothers—owner Steve Chon and Victor Chon—as well as his niece, Stephanie Chon, with two counts of grand larceny, eight counts of criminal tax fraud, and one count of criminal tax fraud. The AG alleged that the Chons had evaded $1.5 million in tax payments. The cases against Chon's family members have been dismissed, according to the Post.
Spa Castle, of course, is a medium-notorious New York bathing fixture with a checkered past. In 2014, an elderly man died in one of its hot tubs, and in 2016, a powerful vent snared a little girl's hair and trapped her underwater, almost drowning her. That same year, Spa Castle came under fire for allegedly barring a transgender man from its locker rooms and nude bathing areas. That the spa allows naked swimming reportedly makes for some raunchy parties, according to a NY Post expose detailing the rampant group sex and groping that apparently take place in the Castle's waters.
So where does all of this financial crime leave Spa Castle, you may be wondering—will these debts close down the complex's many pools of debauchery? Gothamist has reached out to Spa Castle for clarification, but given the profit this wellness racket turns, service changes seem unlikely.
Tagged
sex spa
spa castle
tax evasion
tax fraud
Claire Lampen
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Mamdani launches new team to help NYers keep SNAP, Medicaid benefits
Nearly 1 million in the city risk losing benefits as a result of new federal restrictions.
By
Caroline Lewis
Published Oct 19, 2026 at 12:43 p.m. ET
Riders at 53rd St. station where man was fatally shot say they worry about gun violence
A 26-year-old died after being shot on the platform at the Midtown station. Commuters are rattled.
By
Ramsey Khalifeh
News
Riders at 53rd St. station where man was fatally shot say they worry about gun violence
A 26-year-old died after being shot on the platform at the Midtown station. Commuters are rattled.
By
Ramsey Khalifeh
These are the NYC neighborhoods that will get free 2-K next fall
By
Karen Yi
Early Addition: Get to know Wanda, the donkey in the Met's 'La Bohème'
By
James Ramsay
Eric Adams' NYC buildings boss Eric Ulrich heads to trial, 3 years after arrest
By
David Brand
and
Samantha Max
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .