LYNN – Sitting on her front porch on Rockaway Street, Chalia Taylor let out a shriek and shook her head in disbelief upon learning that Lynn police busted her neighbor on Tuesday for running an alleged house of prostitution.?I think it?s disgusting, disturbing and just horrible,” she said. “I?m heartbroken over this.”According to court documents, police stormed an apartment on the first floor of 70 Rockaway St. around 10 p.m., where they arrested Elmer Canizales, 33, of 92 Marianna St., #1, Lynn. He was charged with deriving support from prostitution and maintaining a house of prostitution. Judge Ellen Flatley arraigned Canizales at Lynn District Court on Wednesday, where he was ordered held in lieu of $1,000 cash bail. A pre-trial hearing has been scheduled for Aug. 24.Police are also in the process of summonsing two alleged prostitutes who were removed from the apartment, one of whom was allegedly caught engaged in a sex act with a John. According to the police report, one of the prostitutes said she had arrived on Monday after she was driven from New York to East Boston and then to Lynn by a Columbian male.The report went on to say that men are charged $30 for a sex act, which is then split with the prostitute following her week-long stay at the apartment. Both women, one from Mexico, the other from Costa Rica, were found to have green poker chips in their pocketbooks, which police say indicate the number of men they have had sex with.The ring leaders of the operation are believed to be Columbian with ties to East Boston, according to reports.Shocked by the news, Taylor shuddered when she recalled seeing police remove people from the home on Tuesday, along with an unrelated bible group that had met in another apartment, unknowing of what was going on downstairs.?I?ve seen men go into the house before with cases of beer and they always whistle at me,” Taylor said. “I have young children, so I can?t believe this is happening. And the Ford School is right up the street and playgrounds too!”A row of unkempt homes line the busy street with seemingly never ending traffic, which Taylor said probably contributed to no one knowing what was going on behind closed doors. Police say the first floor apartment was sparsely furnished, with just a mattress on the floor in each of the rooms.?Oh my God, those poor women, how degrading,” Taylor said. “I?ve been living here for five years, but I?m moving, I?ve had enough.”Police seized $130 combined in cash from the prostitutes, along with seven poker chips, $342 in cash and two cellular phones from Canizales.