SCOTTSDALE – Seven people were arrested and $1 million in cash was seized from a Scottsdale escort service earlier this week in a statewide prostitution sting.
The escort service, Touch of Class, is suspected of providing call girls out of an Osborn Road office since 1999 for an estimated $6.5 million in profits, police said.
The Scottsdale police investigation, Operation Outcall, began more than two years ago. Investigators served 11 search warrants earlier this week in the Valley and Tucson.
More arrests and seizures of illegal assets are possible, said Lt. Steve Gesell, special investigations section commander for Scottsdale police.
Gesell said the Touch of Class office at 7505 E. Osborn Road, a city-licensed escort service, included a day-care center for prostitutes to place their children while they serviced clients.
Touch of Class is one of several Scottsdale-licensed escort services. Investigators described it as a family-run operation with more than 50 employees.
“It’s essentially a front for illegal prostitution,” Gesell said.
“It appeared like a legitimate business,” he said. “They even had office pools and bonuses.”
Joseph Zahara, 62, the alleged “CEO” of the escort service, was arrested along with his wife, son, and daughter-in-law, who police described as managers.
The Zaharas and the three other suspects were arrested on suspicion of running an illegal enterprise, racketeering and other charges. None of the suspects are currently in police custody.
The Arizona Attorney General’s Office and several Arizona police agencies contributed to the investigation.
Assets seized through Operation Outcall will likely be divided between Scottsdale police and other agencies through Arizona’s racketeering and forfeiture statutes, also know as the RICO laws.