Yi "Candy" Zhang, who owns Pacific Massage, was arrested last week and charged with robbery and filing a false police report.
Investigators said in March she plotted to rob a client while he lay naked on a massage table. According to police, Zhang called police to report three men had stormed her business with guns and demanded money.
During the robbery, the suspects stole her client's wallet containing $60 in cash and his credit cards.
Zhang allegedly told investigators she had also been assaulted. But there were questions about her story after investigators accessed surveillance video from the alleged robbery.
In a statement, an investigator said video showed that Zhang "...Pulled (the suspect) close to her in a hug, and either kissed him or whispered in his ear." The report went on to state "it was clear that suspect Zhang knew one or more of the perpetrators."
Melinda Sones, who runs a Montessori school next door, says the business has been a source of concern.
"There are a lot of gentlemen that come out of their cars and go inside and we just have a concern that it's basically really close to the school and we have all the children here," she said.
Zhang is out on $35,000 bail. Police say the three other suspects remain at large.
In the meantime, the massage parlor is currently closed. A sign outside the business says the store is undergoing remodeling.