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Chambers used his family's funeral business to set up Professional Services' "sub-merchant" account with a Sovran Bank branch in Silver Spring.Credit card charges and checks were deposited in the Sovran account, while cash paid for escort services usually was deposited at other area banks, including Riggs, National Bank of Washington and First American.Sovran canceled Professional Services' account after the comptroller of Chambers Funeral Home discovered the secret sex-for-hire card processing scheme. Chambers now funnels charge slips through another licensed credit card processing company, Executive Services, in Suitland.Part of the regional escort network is directly linked to employees at dozens of hotels in the area, those interviewed said.The escort firm has relocated and - using a 50-line Merlin computerized call-forwarding system - is still in operation while local authorities try to track down individual call boys with information gathered from seized documents.In want ads placed in local tabloid newspapers and Yellow Pages telephone directories, Professional Services hawks its wares under such names as In its own investigation of the male escort service raided in February and again May 18, The Times has obtained extensive financial records that reveal how the homosexual network handled its credit card and check cashing needs by using legitimate umbrella organizations in the Members of the law enforcement team investigating Professional Services, which includes the Secret Service and the Metropolitan Police, said a special federal grand jury is expected to hand up indictments based on violations of federal credit card statutes, mail fraud laws and banking regulations that bar illegal activities, such as prostitution.These accounts were usually in the names of the escort operators - principally Henry W.

Bars and clubs catering to a homosexual clientele include The Chesapeake House, Brass Rail, Knob Hill, The Follies, Lost and Found, Tracks, and La Cage Aux Follies. Spence, an enigmatic figure who threw glittery parties for key officials of the Reagan and Bush administrations, media stars and top military officers, bugged the gatherings to compromise guests, provided cocaine, blackmailed some associates and spent up to ,000 a month on male prostitutes, according to friends, acquaintances and records. Several former associates said his house on Wyoming Avenue was bugged and had a secret two-way mirror, and that he attempted to ensnare visitors into compromising sexual encounters that he could then use as leverage.But the next year, he pleaded guilty and got a five-year prison term. Shafer's office Monday and talked to a man who called himself "Henry Shafer." When she asked if his name is Henry Vinson, he screamed: "Would you like to come and have sex with me, you [racial obscenity]? Well, that's just this week's developments in murky Mingo, where public officials have always been bizarre.Now Vinson's sister says she thinks he's married to Dr. Matewan Police Chief Sid Hatfield led strikers in a historic shootout with Baldwin-Felts detectives; Sheriff Johnie Owens "sold" his elected office to another politician for $ 100,000; Kermit Fire Chief "Wig" Preece and his relatives sold drugs from the firehouse - that's public life in the Deep South coal county. Va., a coal miner's son accused of setting up the homosexual escort service, was arraigned in U. District Court here yesterday afternoon after turning himself in to Secret Service agents . Spence was found dead in a Boston hotel room last fall, and authorities ruled his death a suicide . Vinson vowed that he'd never be convicted, because he said his "call boy" service had been utilized by officials of the Moore administration in Charleston and by officials of the Reagan-Bush White House in Washington. Truman Chafin, D-Mingo, was indicted on federal wiretap charges in his messy divorce, but was found innocent. Spence, a Washington lobbyist and party-giver who, the paper said, took friends and prostitutes on late-night tours of the White House. To date, however, investigators have disclosed no evidence linking any high-level government official to the escort service.