CLEVELAND -- A Cuyahoga County grand jury has indicted a man on 15 counts for running a brothel in the Bedford office building he owns.
James Walsh, 71, of Willoughby Hills was indicted on six counts of promoting prostitution and nine counts of money laundering.
The indictment charges that he operated a house of prostitution on the third floor of the Walsh Professional Building at 466 Northfield Road in Bedford and that he supervised a staff of women who provided a menu of services ranging from nude massages to sex acts.
Bedford police arrested Walsh this evening. He was taken to the Cuyahoga County Jail and will await his arraignment in Cuyahoga County Common Pleas Court.
Extensive financial records seized by investigators executing search warrants on Sept. 30 indicate that Walsh's operation has employed numerous women this year who serviced hundreds of clients.
Customers of what was known as "Studio 54" were required to sign a waiver that they were not undercover police officers, and some men used credit cards to pay for their bills.
Investigators are evaluating the names of everyone in the records, Prosecutor Timothy J. McGinty said.
As part of the indictment, the prosecutor also is requesting that Walsh forfeit certain assets, including the office building, $6,750 in cash seized from the premises during the execution of a search warrant and two vehicles.
Bedford police initiated the investigation earlier this year after one of Walsh's sex workers apparently overdosed.
"Many of these young women are addicted to drugs or destitute and are being abused by pimps,'' McGinty said. "It was an overdose at this bordello -- and the woman's rescue by firefighters and police officers -- that triggered this investigation.''
The raids on Sept. 30 were conducted by police officers from Bedford and Willoughby Hills and agents from the U.S. Secret Service and the Internal Revenue Service.