Simultaneously, in Australia, over 150 individuals were arrested on charges of possession and distribution of child pornography. In reality, the agency psychologically manipulated the children, coaxing them into explicit photoshoots under the guise of changing outfits or playing games, ensuring that most of the young victims were oblivious to the exploitative nature of the activities. They deceived parents by presenting the façade of a legitimate modeling business, showing them reputable magazines with children on the covers, and promising similar opportunities for their kids. Sergei Bakaev, head of the department for combating crimes related to human trafficking, emphasized the manipulative strategies used by the agency to exploit children. As part of the subsequent investigation, the Alex Model agency in Kharkov was discovered. The operations of the Kyiv-based porn studio came to close law enforcement agencies stopped its operations. Law enforcement started surveillance and collected information, and officers identified about 40 people involved in this case in one way or another.

The first police report for the agency was received by the Crimean police in 2004 from a resident of Simferopol. The images of minors were then disseminated predominantly on foreign internet websites to consumers in the United States, Canada and Australia among others. The agency had many branches located throughout Ukraine, in particular in Kyiv, Kharkiv, and Simferopol. It's believed, the agency have lured approximately 1,500 girls, aged between 8 and 16. Parents, believing in opportunities for their children, brought in their kids, and the agency's workers would create explicit content. They would regularly advertise on TV, in local newspapers and radio, calling for children with a 'model appearance'. The agency's operations spanned several cities in Ukraine. The leaders attracted minors with the prospect of modeling opportunities, only to involve them in illicit activities.

Operating predominantly in Kyiv with branches in cities like Kharkiv and Simferopol, the agency, named 'Alex Model' ( Ukrainian: Алекс-Модел), was identified as one of the major producers and distributors of child pornographic content which was branded under several names throughout the world using 'LS' abbreviature as LS-Models, LS-Magazine, LS-Girls, LS-Studio, LS-Island, LS-Land, LS-Dreams, LSMODELCLUB (LS Model Club). The ring had operated since 2001 and used a modeling agency as a front. The 2004 Ukrainian child pornography raids occurred a few months before the First Orange Revolution, when police in Ukraine raided a softcore child pornography ring operating in the cities of Kyiv, Kharkiv, and Simferopol.

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