Ocean City Brothel Case To Go Before Grand Jury: Report

A case involving a woman charged with running a brothel in Ocean City will appear before a grand jury, the Press of Atlantic City reported Thursday. Grace Li, who was charged with running a house of prostitution out of a local spa, appeared Thursday in Cape May Superior Court for a pre-indictment conference, according to the Press.

Li's attorney, Assistant Deputy Public Defender Erika Appenzeller, requested removal of the case from the pre-indictment list, the Press reported.

“At this point in time, the state has not released any discovery in this matter,” Appenzeller said, according to the Press. “It is my understanding that there may be additional charges.”

Assistant Prosecutor Dara Paley, who represented the state in this matter, also asked Judge Sarah Beth Johnson to take the case off the list, the Press reported. Li, who utilized a Mandarin Chinese interpreter, only spoke during the five-minute court appearance when the judge asked for her address, according to the Press.

Li, 61, was arrested Dec. 13 after the Ocean City Police Department began receiving information about the alleged prostitution in July, according to authorities.

The activity centered around the L&G Spa in the 500 block of East 9th Street, according to Cape May County Prosecutor Jeffrey H. Sutherland and Acting Ocean City Police Chief Jay Prettyman.

The police department, the prosecutor's office and Homeland Security Investigations opened an investigation, which revealed prostitution was occurring inside the business. A search warrant was executed and Li was arrested on Dec. 13.

Li, of Ocean City, was charged with third-degree managing a house of prostitution. She was processed and released with a summons. If convicted, she faces 3-5 years in state prison.

With reporting from Anthony Bellano/Patch