Kandi Brown told 7NEWS that said she and her friends were turned away from Club Chloe even before they got in line.

"Upon arrival to the line, before we even got to the line, a gentleman that appeared to be a doorman said, 'We're not going to be able to accommodate you today,'" said Brown.

As Brown and her friends were turned away, she said she noticed a steady stream of white patrons who were being allowed inside the club.

Another woman, Rachel Placide, was at the club the same night. Placide said she showed up with a group of friends who were minorities. She got in with no problem but her friends were quickly turned around. She was so disturbed she said she even tried entering the club a second time.

"Not only were we greeted and ushered in ... we were pointed out in the line: 'You two, right there, right this way.' They let us in," Placide recalled.

"Chloe and Suite 200 have limited capacity and high demand. It is difficult to accommodate a large number of people without a reservation or once they reach capacity," said Lotus Concepts, the owner of Chloe and other popular clubs, in a statement last August. "At no time do we condone racial discrimination."

However, the Colorado Department of Regulatory Agencies disagreed.

"I conclude from our investigation that there is sufficient evidence to find that the Respondent [Lotus Concepts] discriminatorily denied the Charging Party [Brown] the goods, services, facilities, privileges, advantages or accommodations of a place of public accommodation due to her race/color," the report from the Division of Civil Rights said. "The record also supports a finding that the Respondent maintains covert practices designed to limit the number of persons of color as general patrons in the nightclubs while not similarly enforcing the dress code or admission policies against Caucasian/White patrons."

The division issued a probable cause determination. The owner of the club will have to negotiate a settlement in the case later this month.