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Neighbors in the area told ABC11 they saw a steady stream of men eager to get inside the business that investigators said was operating illegally.
"We watch men go in and out at all times of the day and night," said Carole Welker, an employee at Grand Street Pizza next door.
The business is closed.
One of the alleged owners, Ri-Ping Lan is in custody on charges of human trafficking and prostitution.
Investigators said she was operating two massage parlors listed by various names without a proper license.
"That's not good. It's just not something you would envision for Knightdale," said Mercedes Poole, who manages the Grand Street Pizza nearby.
Investigators released new search warrants that show the massage parlor used messages such as "eager to please" in online ads to attract its clientele.
After neighbors complained about the activity, Knightdale Police used informants to pose as customers.
The warrants said the investigators were told to remove all their clothing, including undergarments.
The rubdowns would become sexual, and then the fake masseuse would offer to engage in a sex act for as much as $60.
Last week, investigators searched both massage locations and confiscated thousands of dollars in hidden cash, security video, receipts, bank statements, computers, cell phones, and passports.
Welker and Poole say they saw one customer show up for his appointment as police searched the business.
"He got in his car and he left this parking lot so fast," Poole said.
Police won't say whether there will be more arrests.
Part of the investigation included a search of the suspect's home.
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