It split in 2001 into two separate outlets, LS and BD. The deputy head of the department, Vitaly Yarema, said that the bank accounts of the agency, containing hundreds of thousands of dollars, had been frozen.Ukrainian Angels Studios actually began work much earlier, around 1999 or 2000. Erotic materials produced by the agency were distributed over the Internet to various countries.The agency, Ukrainian Angels Studio, streamed on the web was called LS (Lolita Studio) Models and had a number of different domains such as LS Island, LS Magazine, Lolitas on Holiday, LS Dreams, and a series of sites under the LS Land moniker.The Crime Investigation Department of the Ministry for the Interior conducted the raids.

Although some models were of legal age-18+-approximately 1,500 girls aged from 8 to 16 were said to have been to the agency.