Drugs, prostitution tied to strip clubs

HAMBURG, N.Y. (WIVB) - News 4 has learned that the 24 Karat Gold nightclub in Hamburg and Rick's Tally Ho in Cheektowaga are both under a federal investigation into alleged drug trafficking, involving heroin and cocaine.

There was several State Police cars and investigators at 24 Karat Gold on Route 5, Tuesday morning and State Police Investigators and canine police dogs seen Tuesday morning, at Rick's Tally Ho.

Federal Court sources tell News 4 that several suspects have been brought in to federal court for arraignment.

Law enforcement sources say that neither owner of each night club has been charged, but managers and employees of both places have been charged.

Sources also say, that drug dealing and use and prostitution is alleged in this investigation.

>> The FBI plans to announce 27 arrests in connection to this investigation, Tuesday afternoon.

24 Karat Gold is the same strip club that made headlines last month. Reliable sources said two on duty officers were the focus of an internal police investigation after disturbing allegations emerged, accusing them of having a possible "sexual encounter" with a stripper.

>> For more on that story, click here.