The Plain Dealer of Cleveland reported Wednesday that a federal grand jury is investigating whether money laundering and prostitution occurred at the Bella Health Spa in Warren.

Last week, the spa's former manager, Janet Blasens, was arraigned in U.S. District Court in Cleveland on charges of lying to a grand jury.

The indictment against Blasens says that from 1997 to 1999, employees of the Bella Health Spa were encouraged to have sex with patrons and that the business brought women from out of state to work in the spa and engage in sexual activity with customers.

She also knew prostitution occurred regularly but refused to admit it, assistant U.S. Attorney Thomas J. Gruscinski alleges.

Blasens, 35, of Youngstown, has denied any wrongdoing. The Plain Dealer reported that she told the grand jury that she would tell customers, "If you'd like to stay for a relaxation massage, fine. If you're expecting more, you can go a mile down the street."

William Boldin, a Warren police detective, said the Bella Health Spa investigation began as a result of another case. He said officers then sought out the FBI and federal prosecutors to help in the case.