A Shelby County, Tennessee, high school teacher has resigned after police accused him of running a sex club as well as other offenses.

The district told the media that Walter McCrimmon was suspended without pay as soon as news broke that he had been arrested by Memphis police.

“We are very concerned about the severity of these allegations,” the school district said in a statement. “At this point, the teacher has been suspended without pay.”

Authorities accused McCrimmon of being “a teacher by day and a pimp by night,” allegedly running prostitutes out of “Walt’s Place,” a nightclub he owns and operates.

The now former teacher was charged with promoting prostitution, unlawful sale of alcohol, and money laundering

Along with owning the nightclub, McCrimmon had been working as a history teacher at Raleigh-Egypt High School since 2003.

During its four-month sting, Memphis police reported that officers bought untaxed liquor and found that Walt’s Place had no liquor license. They also recorded instances of prostitution and noted that the club was a “nuisance” to the neighborhood.

“We will continue to dismantle businesses that are operating in an unlawful manner. We are dedicated to bring relief to communities afflicted by businesses such as this one,” Memphis Police Director Toney Armstrong told Action News 5.

Fox 13 Memphis spoke to several residents and they expressed their shock at the arrest.

“It’s ridiculous, it’s crazy. How can you trust your daughter to come here and go to school with a teacher that sells out young girls?” local resident Carl Piggie said.

Follow Warner Todd Huston on Twitter @warnerthuston, or email the author at igcolonel@hotmail.com.