September 27, 2006

(CBS) LOS ANGELES A judge cleared the way Wednesday for two defendants accused of running a Coachella Valley-based prostitution ring to be released on bail.

At a hearing on Monday, Vince Kandis, owner of Spectrum Distribution and Marketing Inc., said he'd known Ofer Lupovitz, 43, and Melanie Smith, 24, for six years and wanted to post bail as a "personal favor" to them.

Her bail was set at $200,000 and Lupovitz's at $750,000.

Prosecutors were granted a two-day continuance in order to review Kandis' financial documents and confirm his ability to pay the bail premiums.

On Wednesday, Riverside County Superior Court Judge Richard Erwood approved the bond postings, which will be handled by a bail bonds company headquartered in Murrieta.

Prosecutors allege Lupovitz and Smith were ringleaders of an escort service called Elite Entertainment, which made use of 80 telephone lines and the Internet to send out as many as 240 prostitutes to clients across California, Oregon, Nevada and Arizona.

The ring operated from an office hub at 707 Tahquitz Canyon Way in downtown Palm Springs before moving to a Palm Desert office earlier this summer, according to authorities, who say toll-free numbers and Web sites were used to solicit business.

Smith is married to another alleged ringleader of the group, Boaz Benmoshe, 44.

Kandis testified Monday that he had never conducted business with Lupovitz or Elite Entertainment, but conceded that Lupovitz once wired him $60,000, which he called "a loan of sorts." He said he wired the money back to Lupovitz one week later.

He and Lupovitz were both in the sports supplements business and a friendship ensued, through which he met Smith, a former Elite receptionist, Kandis testified.

Lupovitz, along with co-defendants Moti or "Monty" Vintrov, 33, and his brother Eliran Vintrov, 28, allegedly managed Elite's day-to-day operations.

The five defendants -- a total of eight Coachella Valley residents are charged in the case -- were ordered earlier this month to stand trial on pimping, fraud and money laundering charges.

Lupovitz's next court appearance is scheduled for Oct. 11 in Indio. Smith is next due in court for a Nov. 3 trial-readiness conference, also in Indio.