Police break up lucrative Phoenix-area prostitution ring

Eugene Lau was arrested in front of a Tempe Burger King on Tuesday. Police said Lau thought he was meeting a woman looking to work for him when he was really talking to an undercover detective.

About 15 minutes after Lau's arrest, police descended on the Galleria Palms Apartments at 1600 W. La Jolla Drive, where they arrested Patricia Headley, 28, and Carman Bermea, 33, on suspicion of prostitution.

The arrests continued for hours, marking the end of a four-month investigation called Operation Under Covers. Nearly 40 officers raided five apartments in Tempe and Scottsdale, which they believe were leased by Lau and used for sex.

In all, five women were taken into custody and police were searching for at least six others.

Police said they don't know how long the ring, called Creative Service Referral, operated.

Police said the ring averaged about 16 customers each day, seven days a week, meaning Lau could have earned more than $24,000 each month. When Lau was arrested, he had $1,326 cash in his wallet, police said.

But the man also took care of the women who worked for him, police said.

During the raids, police looked for evidence including financial records, electronic storage devices and currency. Police didn't find any clients inside the apartments.

The women were booked on suspicion of working for a criminal enterprise and Lau was booked on suspicion of illegally conducting an enterprise. Both are Class 3 felonies that carry up to eight years and nine months in prison.