PD: Couple, 2 workers arrested in Phoenix prostitution business

PHOENIX - Police have identified four people who were arrested Tuesday in connection with an "ongoing" prostitution business.

Phoenix police served the first of two search warrants Tuesday morning, raiding a club called Champagne Room near 38th Street and Interstate 10.

Police also raided a home in Surprise, where Air15 video showed a security door ripped from the door frame and front windows broken out.

Some neighbors weren't surprised by the arrest because of the recent activity around the house over the past couple months.

"My wife took my daughter trick-or-treating there in October. The lady opened the door with the candy and in front of the room directly behind the door was a big king-sized bed and it had high-powered cameras aimed towards the bed with lights. When they told me what they saw, I've had the kids stay away from the house, " said Mike Boyle.

Sgt. Steve Martos said the raids come after a two-year investigation into Champagne Room, which he referred to as "an ongoing illegal enterprise and house of prostitution." 

The club, owned and operated by Janet Fiore and her boyfriend Sterling Costa, was a "fortified brothel", which reportedly offered prostitution services for prices ranging between $300 and $1,000.

Tiphany Finklea, 22, and Margaret Pahssen, 37, were also arrested Tuesday. Fiore, Costa, Finklea and Pahssen were identified as having "a controlling and participating role" in the business.

Five people were initially taken into custody Tuesday morning, but Martos said two were released pending further investigation and an additional suspect was arrested later in the day.

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