Former massage parlor on block
Federal authorities in Grand Junction will auction the remnants of a former prostitution business next month.
The U.S. Department of Treasury on Friday issued formal notice of the auction, which will start at noon April 14 at the former Fuji Oriental Massage building, 762 Horizon Drive.
Aside from the building on Horizon, officials are selling a two-bedroom condominium at 3154 Lakeside Drive, Unit 206.
Would-be buyers are asked to register at 11 a.m. at the Fuji building. Internal Revenue Service special agent John Harrison said participants must hand over a $10,000 cashier’s check in order to bid on the Horizon building, or a $5,000 cashier’s check to bid on the condominium.
Only checks from winning bidders will be deposited, and the other checks will be returned, Harrison said.
Open houses for both properties will take place from 1 p.m. to 4 p.m. April 2 and April 9.
The properties were owned by Nan O’Reilly, former Fuji Massage owner. Both were seized by federal authorities in the wake of O’Reilly’s arrest in November 2008 and the closure of her business soon after.
In a civil forfeiture action, federal authorities said O’Reilly used revenue from prostitution to purchase or pay taxes on properties in Grand Junction and the Front Range.
Fuji Massage operated 14 years before the 4,000-square-feet building on Horizon Drive was shuttered by police.
In September, a federal judge ordered that O’Reilly forfeit the properties to the U.S. government.
Agents in recent months removed various items left behind two years ago, such as a hot tub and a weight-lifting set, Harrison said.
Approximately 70 percent of the auction’s proceeds will go to the coffers of local law enforcement agencies, he said.
O’Reilly is serving a six-year probation sentence stemming from an investigation into activities at the business.