Nationwide Internet prostitution ring linked to the Valley Reported by: Katrina Wessman Email: [email protected] Last Update: 5:28 pm
The Phoenix Police Department made the first arrests Monday in the investigation of a nationwide prostitution ring with links to the Valley.
On July 24th, a Maricopa County grand jury handed up a 17-count indictment naming 55 defendants.
On August 4th and 5th, police began making a series of arrests.
According to investigators, this is the largest prostitution organization uncovered in Arizona.
Officers said they first received a tip of a prostitution business in August 2007 and discovered an organization, run by Paul Nichta, called “Night Entertainment Partners”.
Nichta allegedly made bank deposits of $250,000 a month using a series of escort service businesses as a front for prostitution. Those businesses include:
• Desert Divas LLC • Night Partners Entertainment • NPE Management Services • Hips Touring LLC • Escorts in Action • AZ Confidential • Desert Divas New Mexico
According to Phoenix police, most of the companies were registered with the City of Phoenix or the Arizona Corporation Commission.
The operation also included a pornographic website which showed “Escort Reviews.”
Officers say Nichta would hold “meet and greets” at Valley restaurants every week so that prospective customers could meet the escorts in person.
Nichta recruited the escorts through ads in the New Times and websites promising escorts incomes of up to $30,000 a month, according to officials.
Two former escorts told police they made about $2,000 a night but could also earn an additional $15,000 a night in tips.
More than 100 people, mostly prostitutes, are believed to be involved in the ring.
The organization filmed pornographic acts with the prostitutes, according to the investigators, and made them available for viewing through the Internet to hundreds of customers, or “johns”, who ordered the service through their various websites.
The investigation has connections to Philadelphia and Albuquerque, however the majority of the organization’s activities were conducted in the Valley.
Philadelphia detectives arrested one suspect in this case.
Albuquerque detectives conducted a search warrant on the organization’s office, “Desert Divas New Mexico”, in Albuquerque on Sunday and arrested numerous suspects, including 41-year-old James Bays.
Nine search warrants were conducted throughout the Valley on Monday, according to authorities. Three residences were seized, at least eight vehicles and one motorcycle were taken, and financial seizures were made.
Six rifles, 12 handguns, and two silencers were taken from Nichta’s Paradise Valley residence.
Some of the prostitutes have also been arrested and more arrests are expected in the weeks to come.
Officials say there are 'big names' linked to the ring, but those names have not yet been released.
Nine of the top members of the organization have already been arrested and face charges of conspiracy to control an illegal enterprise, illegal control of an enterprise, money laundering, operating a house of prostitution, employee at a house of prostitution, pandering, receiving the earnings of a prostitute, use of a wire or electronic communication, and prostitution.
The nine key suspects arrested include:
Paul Nichta, 32, Scott Eder, 35, Peter Shifman, 56, Billi Mayfield, 19, Adam Beech, 25, Charles Sanders, 29, Louis Sterling, 55, William Ferretti, 65, and Chloe Magouliotis, 23.
The following residences were included in Monday's seizures:
6839 E. Sunnyvale, Paradise Valley 4043 E. Woodstock Road, Cave Creek 3003 E. Camellia Drive, Gilbert
The following vehicles were among those seized in Monday:
2007 Ferrari 43C CP 2006 Lotus EXI CP 2008 Mercedes SL55 RD 2007 Chevy Tahoe 4DSW 2004 Chevy Avalanche 12 PU 2008 BMW 2005 Hummer SUT 2007 Triumph motorcycle
The Phoenix Police Department said they worked with the Maricopa County Attorney’s Office, the Scottsdale Police Department, the Maricopa County Sheriff’s Office, the Mesa Police Department, the Philadelphia Police Department’s Vice Unit, and the Albuquerque Police Department’s Vice unit during this investigation.
When addressing this investigation on Tuesday, County Attorney Andrew Thomas stated, “Our office will work to protect the citizens and neighborhoods of this county from criminal exploitation. We appreciate the excellent work of the Phoenix police detectives who investigated these offenses.”
Phoenix Mayor Phil Gordon said, “These are not victimless crimes. On the most basic level, those involved in prostitution, and the family members who love them, are neglected or worse. And the money generated from these illegal ventures helps fund other criminal enterprises such as drug and smuggling operations. This is a good use of resources and I thank the County Attorney and the Phoenix Police Department for working together to make this a better community.”
Phoenix Police Chief Jack Harris stated, “I would like to commend the men and women of the Vice Enforcement Unit of the Phoenix Police Department, as well as the other agencies that have assisted us, for the many hours they have spent and will spend during the course of this investigation. This investigation successfully targeted a large scale, sophisticated organization dealing in prostitution and pornography, which are often referred to as “victimless crimes”. However, our experience has shown us that these crimes have far reaching consequences on our community. That is why the Phoenix Police Department is committed to fighting these types of crimes.”
This is a sad day for all Arizona sex workers. And no surprise the press release is the typical gratuitous, back-slapping propaganda. Our prayers are with you Paul and all.
As I'm sure that are a number of people who have used the services of "desert divas" etc, I wonder what the penalty is for the "John's" who get busted as a result of this sting? Is it a felony or misdemeanor?
Unlikely that they will bust anyone if it doesnt get more front page news. If someone important or celebrity is on the list, no doubt we will see the names
It is like the police have nothing better to do. Nobody is getting hurt. I am from the Philly boards, visit LV frequently, and consider Phoenix a great city. In fact I have a friend, a great friend, who lives in Phoenix whom I just met this year. She use to be with an agency but she went indy. But her agency wasn't one of the ones caught. After reading this I don't know what I would do if something happened to her. I'd probably bail her out. As I think very highly of her and have plenty of respect. And she is like I say it...a good friend. If she is reading this, she knows who she is.
Just looking at the current story in the Tribune shows two hobbiests in the initial sweep. Both had strong ties to DD (from my very limited knowledge)and would easily fall under RICO guidelines I'm guessing. Just looking at the 55 still outstanding warrants I'd have to guess that 5 or more are probably similiarly involved "hobbiests".
i am sure a lot more of them are the girls that they want for investigation to get more info on the big players and if they did move across state lines for the RICO stuff
First of all, so there's no confusion, it's ridiculous that prostitution is a crime - so I think we're all on the same page there.
But...like it or not, this is a crime. Everyone involved in the entire spectrum of this business should understand that. If you start confusing it "shouldn't" be a crime with it "isn't" a crime, then you are being naive and more vulnerable to the risks.
The fact that it's a crime to run a prostitution ring results in the potential to make a lot of money if you are willing to take the risks to run one. You're not making alot of money because you got a Harvard degree, or you worked hard your entire life, or you are the smartest guy in the room - you are making alot of money because you are willing to take the risks associated with running an illegal business.
So...a bunch of people got busted. It's really too bad for them, but let's not all get teary eyed and act surprised. Sheriff Joe and Andrew Thomas didn't appear out of nowhere - these guys have been around for a while and anyone who is surprised by this sting has not been paying attention.
If we want to get the laws changed, there is a process for doing that. It's unlikely in this state, but it's not out of the question. It takes lobbying dollars and people willing to step out of the shadows to stand up for a law they think is an unreasonable use of government authority. However...my guess is that none of the profits made by this ring were spent hiring lobbyists - looks like it went to buy Ferrari's instead.
So...these are the riks staring back at us. If you are that mad about the law do something to change it. Being incredulous that the law was enforced by some whacko politicians in this conservative state is naive and unproductive.
Not being a lawyer and all, can LE go after those of us that have used the agency in the past? I never did, but like the Govenor of NY, Credit Cards were and option listed on their web page I think. Now wouldn't that be fun. LE can make a killing taking these guys down and the divorce lawyers make a killing with the fallout.
The cop on the news said that they had just printed out the client list from his computer and will be contacting all of the johns with the intend to prosecute.
Hope they didn't get all the names. That could include some indy ladies that were used as references. Shit, this could be bad for the Phoenix hobby. Time to go back to the well for an Indy.
I never used any of the agencies much but I have to believe that some of the providers will need to find "work" if they are not totally freaked out by the whole circus. What are their options? I feel bad for them, this must hit some of them hard not just the LE part but the financial part. Any thoughts?
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