Mr. Neri Armin Navarrete, who identifies as a woman, was convicted of not having a massage license. Her 90 day sentence was suspended and she was fined $500.
Navarrete said off-camera that she reopened with licensed employees working under her Tuesday.
Nearby businesses however remain uneasy about the establishment after police initially accused Navarrete of soliciting prostitution.
"They have no evidence and it never happened," Naverrette said.
Those charges were nolle prosse and set aside by Henrico Commonwealth Attorney's for now.
Prosecutor Michael Feinmel told CBS 6 that the charges were the result of a sting operation after advertisments for erotic services appeared online.
As a condition of her sentence, Navarrete is banned from advertising for escort services on the internet.