I-Team: Prostitution in Providence strip clubs

Editor's Note: An NBC 10 I-Team investigation has found prostitution taking place in several Providence strip clubs. This is part one of a two-part series.

Last August, Providence police and the city's Licensing Board shut down Cheater's Gentleman's Club, after a 15-year-old girl was found there. She was not only stripping for customers, but offering sex for money.

The NBC 10 I-Team sent a producer into the Cadillac Lounge strip club on four different occasions over the past three months. Each time, our producer was offered sex for money by one of the dancers at the club.

"She offered to take me into the Champagne Room, a back room. She said it was $250 to do oral, not actual sex, just oral," the producer said.

A former employee of the club, who worked at the Cadillac Lounge for about five years, said prostitution was and is a big business at the club.

"I would say 70 to 80 percent of the dancers at the club would engage in prostitution," said the former employee.

Two private investigators were hired by a client in Providence to conduct an investigation into possible prostitution at Providence strip clubs.

The I-Team obtained confidential reports compiled by the investigators. Using hidden cameras, the investigators visited the Cadillac Lounge, as well as two other strip clubs. At all the clubs, the investigators found prostitution taking place.

On Oct. 17, an investigator entered the Cadillac Lounge strip club.

He stated in his confidential report, "I proceeded to the Champagne Room, (with a dancer). I paid the house $50. I entered booth No. 2. Once in the private booth, the dancer notified the investigator that she 'had her period.'"

The investigator had already paid the dancer $150 and asked her, "Is that for anything?"

According to the investigator's report, she replied, "It would be another $100 for anything."

He negotiated with her and told her $100 was too much. She said, "How about $50?" They agreed on that price, and she then "offered oral or anal sex."

According to the former employee, some of the dancers have unprotected sex for money, and many of the dancers work for pimps, who work inside the club.

The I-Team called the Cadillac Lounge and asked to speak with Richard Shappy.

Shappy's wife owns the club, according to corporation papers on file at the secretary of state's office, but it's common knowledge at the club, according to the former employee, that Richard "Dick" Shappy is the boss.

Phone calls placed to Shappy were not returned.

The I-Team investigation continues Tuesday at 11 p.m. when it will focus on two more strip clubs where investigators found prostitution taking place.