Faquar "Terry" Holland, 39, of Charleroir made a brief court appearance, the Pittsburgh Tribune-Review reported. Holland was a detective in Pittsburgh and was honored for his work in 2000.
Talib "Kevin" Ghafoor, 55, of Liberty who was Police Officer of the Year in 1999, is also charged, and a hearing has been scheduled for Aug. 2.
Police in Moon, a Pittsburgh-area township, said they discovered phone numbers and credit card numbers belonging to the two former officers used in connection with online ads for sexual services. They face charges that include promoting prostitution and conspiracy.
Ghafoor was arrested in March. Police said undercover investigators arranged a meeting with a woman named "Sally," later identified as Sabina Sailer, 43, of Venice, Fla.
Sailer, who also faces charges, allegedly identified Ghafoor as her driver and fiancee and said he was a former Pittsburgh police officer.
Investigators said Holland has been cooperative since his arrest Friday.