During the Reaper War, Aria T'Loak decided to take back Omega with Shepard and Olivia's help and once the Reaper War was over, she decided not to return to the Citadel. It was at this time that the Auroras (Geovanni and Giuliana, respectively) took over the crumbling empire and rose to power. Even though they had taken power, they'd left Purgatory to rot and the club headed the route of Chora's Den. It became the meeting place for the degenerates of the Citadel.
After the first barfight, the Executor of C-Sec tried to have it shut down, but couldn't get the clout to do so. C-Sec and the council battled to have it shut down and as they did, Purgatory sank into decline.
On the last night of its opening, Olivia Marcellus (as she was widowed then, dating Carmen, and had subsequently dropped Shepard from her name), Ranger Steele, and Jamie Brooke decided to go and have a night out. The three of them got drunk as as usual, Olivia and Jamie decided to commandeer the stage and start to sing. After the two finished the song, two krogans attempted to drag them away and a fight ensured as Ranger stepped in to help. Shots were fired, a varren got hurt in the process, and arrows were shot.
It was then that the Executor got the clout to shut Pugatory down.
After Olivia and Carmen's marriage, Olivia decided to take over the club and make it her own. She'd had funds sat aside and with Shale and Ranger's help financially (also the Auroras to Olivia's consternation), she bought the club. Renovations began and afterwards, Olivia opened the club to the general public.
Guilty Pleasures has become the setting for many of Olivia's misdeeds, including her Creed Holdings, Inc. operations and her Pirating activities. Although she's resigned the position of Captain of the Order of the Crimson Shadows to her brother Captain Marcus Marcellus, she still maintains their activities in her underground command center, deep under Guilty Pleasures.