On Saturday morning, police arrested Kuniko Wada, the 66-year-old manager of Cotton Club and Suzume No Yado, both located in the Kanazuen red-light district, and four current and former employees for offering of sex services to male customers in private rooms in violation of the Anti-Prostitution Law between October and November of last year.
Police also searched other locations connected to the bathhouses and seized personal computers and customer registers, according to the Chunichi Shimbun (Feb. 13).
All five suspects admit to the allegations.
In April of last year, police received an anonymous tip about illegal activity at both bathhouses. An investigation was subsequently launched.
The bust on Saturday was the first in the Kanazuen area, whose 40 bathhouses make it the largest in the Tokai area, since 2014, when police raided Duras Classic on the same charges.
Police are now investigating whether revenue from the two bathhouses is used to fund an organized crime group.