"In the RACJ decision, police officer Hugo Dumas says he pulled back a curtain at Sexe D'or and saw a customer and a woman engaged in an paid sexual act.
Dumas goes on to say that he's "never seen such egregious acts" in his career."
The RACJ is the Régie des alcools, des courses et des jeux--the department that regulates alcohol and gambling.
"Another instance of alleged prostitution occurred when an undercover officer was given a sexual favour during a private dance and was told to call a number if he wanted more.
In the RACJ's report, both the owner and manager of the bar say they took precautions against prostitution, including removing the condom dispenser from the washroom."
You gotta love Canada - the clubs penalty? A 15 day closure. You know in the USA most local governments would yank the clubs license permanently.