The alleged pimps could face up to twelve years behind bars.
In 1997, three of the gang members opened a nightclub in Pardubice, eastern Bohemia, where prostitutes were provided, the Czech anti-organized crime unit, known as the ĂšOOZ, said on Friday. Â The other five men joined the group later to assist in recruiting women and running the club.
The associates reportedly lured Czech, Slovak, Ukrainian and Nigerian nationals between the ages of 18 and 35 to work as prostitutes. Some women reported being forced to share their earnings with the men, and one woman said she feared the threat of physical violence from the traffickers, who forced her into prostitution.
The ÚOOZ say the suspects also used violence to prohibit other persons from opening similar establishments in the area. From the money they earned from their illicit business, the men built lavish villas and purchased luxury cars. Police seized 30,000,000 Czech Korunas (over $1.7 million) during the arrest.
A spokesman for the police told the news portal Czech Position that the arrests were made in mid-June, but that the information was not publicized because the investigation was on-going.
Prostitution is a legal gray area in Czech law: receiving compensation for sexual services is not prohibited, but not declaring the income is considered illegal. However, inciting or persuading someone to provide sexual services, or profiting from someone else’s sexual services, is illegal. Perpetrators found guilty can receive six months to two years in jail. If authorities find that the pimp was part of an organized crime network or that they have harmed the sexual services provider, the sentence can be up to eight years.
Prostitution generates between 10 and 11 billion Czech Korunas (almost $600 million - $656 million) according to Czech weekly magazine Respekt. Respekt points out the  tax-free income generated by about10,000 prostitutesequals the annual income of tthe Škoda car company.