Operation Midnight Climax was an operation initially established by Sidney Gottlieb and placed under the direction of Narcotics Bureau officer George Hunter White under the alias of Morgan Hall for the CIA as a sub-project of Project MKULTRA, the CIA mind-control research program that began in the 1950s.
The project consisted of a web of CIA-run safehouses in San Francisco, Marin, and New York. It was established in order to study the effects of LSD on unconsenting individuals. Prostitutes on the CIA payroll were instructed to lure clients back to the safehouses, where they were surreptitiously plied with a wide range of substances, including LSD, and monitored behind one-way glass. Several significant operational techniques were developed in this theater, including extensive research into sexual blackmail, surveillance technology, and the possible use of mind-altering drugs in field operations.
From: http://en.wikipedia.org/wiki/Operation_Midnight_Climax