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Stardust employed approximately 10 women (the models). The
business of Stardust was conducted out of an office and
"studios". When the business began, there was one studio.
Petitioner eventually added two studios for a total of three
studios where the models could perform at Stardust.
The business of Stardust consisted of customers paying for
the models to engage in various acts. The customers either
called Stardust and scheduled an appointment or walked in off the
street. The models' acts included dancing seminude to nude,
modeling for pictures, and engaging in various sexual acts,
including intercourse. During 1988 and until approximately
August 1989, petitioner charged $80 for a model to spend a
half-hour session at a Stardust studio with a customer. In
August 1989, the half-hour rate increased to $100 per session.
The models received $30 of the fee paid to Stardust and any tip
made at the discretion of the customer. The models often gave to
petitioner a percentage of their tips. Stardust offered 1-hour
sessions at Stardust for $180. Stardust also offered "outcalls"
for $200, where the models were taken to a different location,
such as a hotel, for a session with a customer.
Stardust kept records of the models' sessions on log sheets.
The original log sheets were filled out contemporaneously as
customers arrived at Stardust. The models would record
information about the session on the log sheet. The information
included the date, time in/out, and type of session (modeling or
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