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Las Vegas, NV (KTNV) -- Federal authorities have arrested nine people, including the owner and eight employees of a prominent limousine service in Las Vegas.

The arrests happened Thursday morning, following their indictment on federal racketeering charges related to the distribution of controlled substances, the facilitation of illegal prostitution and the commission of credit card and bank fraud crimes.

"Persons who use legitimate businesses to shield their criminal activities will get the attention of law enforcement, " said U.S. Attorney Daniel Bogden. "In addition to promoting prostitution and selling drugs, these defendants are accused of defrauding customers, many of whom were undoubtedly tourists to Las Vegas."

Arrested were Charles Horky, 52, the primary owner of CLS Transportation; Kimberly Flores, 42, the manager of CLS; Archie Granata, 69, a financial adviser for CLS; Dawit Moszagi, 47, Clarence Adams, 38, James Reda, 38, Mikhail Maleev, 48, limo drivers for CLS; and Solomon Zemedhun, 39, and Olive Toli, 48, associates of the enterprise who allegedly supplied and aided in the distribution of controlled substances.

They were charged with conspiring to participate in an enterprise through a pattern of racketeering activities including wire fraud, access device fraud, bank fraud, distribution of controlled substances, and the use of facilities of interstate commerce to promote, facilitate and distribute the proceeds of prostitution.

The indictment alleges that in 2010 alone, the conspirators issued and cashed more than 1,500 checks and obtained more than $2.4 million through the fraudulent check-kiting scheme.

The defendants appeared before a federal judge Thursday to answer to the charges. They face sentences of up to life in prison.

Horky plead not guilty and was released on his own reconnaissance. He will be monitored and is not allowed to travel beyond California and Nevada.

He will also be allowed to run his company, as long as he doesn't associate with any witnesses or other defendants. A third party will monitor the company weekly to make sure there is no criminal activity.

The FBI and Las Vegas Police raided the business Thursday morning. Vehicles were searched, computers were confiscated and drivers were either sent home or turned away for the day.

Some employees told Actions News that appointments were sent to another local company.

The Nevada Transportation Authority is now receiving the indictment and said it will take any necessary action, if it finds the company broke any state regulations.