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The Palma police have broken up a gang of Germans who allegedly ran a prostitution ring in three clubs in Arenal. Several weeks of investigation culminated in the arrest of five Germans and a woman who was born in Latvia. They were named as Siegmund B, aged 49, Stefan L, 21, Mario L, 28, Hans Joachim J, 45, David S, 25, and Inara G, 45. nvestigations opened at the beginning of February. Police sources say that the women lived in a hostal in Calle Amilcar, in the Playa de Palma, which the organisation had contracted at one million pesetas a month. Only the women lived in the hostal which did not have a tourism permit. Although the women were not kept prisoner and could leave the hostal, they were always closely watched to prevent their escape. The police found 13 women aged between 20 and 23, from Latvia, Poland, Estonia, Ukraine and Lithuania. They entered the country as tourists and have no money as they had to hand it all over to the ringleaders of the gang.