The owner and an employee of a Winnipeg beauty spa face extortion charges after a man says he was sexually assaulted, videotaped and threatened with the footage.

Police believe there are other victims as well and are urging them to come forward.

Simple Mehta, the owner of Simi Magic Spa on St. Anne's Road, is charged with extortion, procuring and conspiracy to commit an indictable offence.

The employee, Pam Sandu, 22, is charged with extortion, voyeurism, sexual assault and conspiracy to commit an indictable offence.

Mehta has also been accused of enlisting another woman to "offer or provide sexual services," according to court documents.

Police say a 29-year-old man, who was in a business relationship with 39-year-old Mehta, went to the spa on a business matter and was offered a massage by an employee while he waited for Mehta.

Once he had prepared himself for the massage, the man was sexually assaulted and discovered he was being videotaped with a cellphone, police said.

"At this point the victim was extorted out of a sum of money with the threat that the video recording would be released," police said.

The owner and employee of a Winnipeg beauty spa face extortion charges after a man says he was sexually assaulted, videotaped and threatened with the footage. 2:15 The man handed over "thousands" of dollars before going to police to report the incident, police spokesperson Const. Rob Carver said at a news conference.

Asked if the assault was actually a sexual favour the man had agreed to, Carver said it doesn't appear he was under the impression "he was getting anything other than a regular massage."

Carver also said police believe the man is likely not alone in being blackmailed in that way.

"It is our understanding that there's certainly a potential there are other victims, and if anyone feels they have any connection, we'd like them to come forward for sure," he said.

Asked if the police believe the incident was a "systemic" issue at Simi Magic Spa, Carver said "we believe that's the potential here, yes."

"We had received information that had put this business on our radar, but we hadn't been able to move forward prior to this," he said.

That "information" isn't restricted to sexual assault, he added, saying police are looking into the possibility "that other criminal activity may have been occurring at the business."

Mehta and Sandhu remain in police custody and more information on further charges could be released on Tuesday, police said.

The investigation continues, and anyone with information is asked to call police at 204-986-3464 or Crime Stoppers at 204-786-TIPS (8477).