Now, authorities in Colorado Springs are defending the move.
Police say the officers had to look like real customers as part of a liquor compliance and prostitution sting at PT's Showclub.
Officials tell The Gazette newspaper the cash had been seized in other undercover operations.
Investigators say no sex-for-cash violations were found.
But authorities add there were alcohol violations.
Lawyers for the club say the owners have surrendered their license to sell booze.
