Sentence:  Perhaps in order to create his own, more controlled environment for debaucherie, he set up a house of prostitution with Gestapo funds, justifying it as a "<WSD>honeypot</WSD>" with which to ensnare unsuspecting foreign diplomats. 
Meaning of the word marked with <WSD> tags:  A spy (typically attractive and female) who uses sex to trap and blackmail a target.