According to a report from the British Broadcasting Corp, police discovered the bizarre sect after raiding a home in the suburbs of the northeastern British town of Darlington.
However, when police called at the house, they found no evidence of criminal activity and said all those involved were "consenting adults."
The 29-year-old Canadian woman reportedly joined the sect after reading about it on the Internet.
She told a friend in the United States that she wanted to leave but couldn't because the sect had burnt her passport and return ticket. Her friend called British police, who subsequently conducted the raid.
But upon arriving at the premises, a police spokesman told the BBC they did not find any evidence of "criminal offences."
Authorities also investigated claims from a father in Essex who expressed concern his 18-year-old son was being trained to be "a master of his own sex slaves".
Officers who spoke to the teenager said they had no grounds to get involved because they were satisfied that he was at the property voluntarily.
Lee Thompson, 31, who lives at the property that was raided, described himself to reporters as a master who trains slaves.
Thompson told the Northern Echo that: "I have been called sick but I don't think what I do is bad."
He said about 350 followers met regularly in pubs and clubs around Britain's north-east.
Thompson, who was banned from a butcher's shop in the town for turning up with a woman on a leash, said that female members of the cult cooked and cleaned as part of their responsibilities, but there was also "an element of sexual domination."
The so-called Kaotian sect follow the Chronicles of Gor novels, which depict a society that is divided into castes and where women are kept as slaves.
Kaotians are a splinter group of the Goreans, who base their lives on a series of novels written by John Norman, the pen name of American university professor John Frederick Lange.
Fascination with the books has spread since the advent of the Internet, where there are sites, chatrooms and role-playing games dedicated to the fictional land of Gor.
"It works on the system that some women have a desire to serve. Most people think it is a very sexual thing, but it is about every action that they make, they do it for their master," Thompson said.
"Saying that, the girls will do everything they are told when it comes to sex, but it is all voluntary and all safe. I use Internet chatrooms to meet people, the girls are quite willing."