All Myanmar Youths
The claims come as police bosses said an officer looking into her case did "nothing wrong" - despite throwing her bloodstained knickers in the bin.
Albuquerque Police Department chief Michael Geier claimed his investigator did everything he could with the information he had at the time.
He insisted the blood-stained underwear by itself was not a strong enough reason for further investigation into what had happened to the schoolgirl.
The girl, from New Mexico in the US, had allegedly been prostituted for drugs and cash by her parents James Stewart and Teri Sanchez.
Heartbreaking court documents tell how the girl once turned up to class saying: "Mom made me hustle last night".
She later told investigators her father "forces her to touch men and women."
In exchange, he gets drugs, like "weed and pipes and other stuff."
In her interview with the attorney general's office, the little girl also told police her mum would take her to "secret parties".
Investigators later determined she was talking about strip-clubs.
The little girl said she was often left alone and entertains herself by "doing gymnastics" in an empty room.
She also says at these parties,her mom is usually "drunk" on "Fireball."
It does not appear, according to the criminal complaint, the little girl was forced into prostitution or assaulted at these parties.
In a harrowing testimony a teacher revealed how she found the bloodstained knickers after telling the girl to go and clean herself up.
However, cops refused to use them as evidence as they had not been "securely stored".
She blasted: "He [the police officer] took them out and threw them in the dumpster.
"I was really, really angry. I was going to get into the dumpster and get them out, because that’s not OK."
The young girl was later interviewed by the police officer in a hotel hallway away from her parents. However, no forensic interview took place.
The case has raised questions about how New Mexico’s Children Youth and Families Department and law enforcement handle alleged child abuse.
CYFD has now launched an internal review into the case promising lessons will be learned to stop other kids suffering.
Sanchez and Stewart were arrested two weeks ago after a school nurse finally told cops that the girl had been sexually assaulted.
The girl is also said to have told investigators that she was made to panhandle and steal people’s wallets.
Her parents have been ordered to remain in custody until the trial.