NYC Strip Club Scandal: Executives Indicted for $8M Tax Evasion Scheme

A bombshell in the New York City business world! RCI Hospitality Holdings, a company owning numerous strip clubs nationwide, and several executives face serious charges.

The New York Attorney General alleges a decade-long bribery scheme (2010-2024). Executives allegedly bribed a state tax auditor with lavish trips to their clubs and cash to avoid paying over $8 million in sales taxes.

The indictment includes 79 counts against RCI, five executives, and three Manhattan clubs. Charges include conspiracy, bribery, and tax fraud.

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Key Players:

• RCI Hospitality Holdings: The Houston-based company operating over 60 clubs and restaurants.
• Eric Langan: CEO, President, and Board Chairman, accused of authorizing the bribes.
• Timothy Winata: Controller and accountant, allegedly directly handing out bribes.
• Unnamed Tax Auditor: The recipient of the bribes, currently under investigation.

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The Alleged Scheme:

The bribes allegedly involved multiple trips to Florida, with the auditor receiving up to $5,000 per day for private dances at RCI clubs like Tootsie's Cabaret in Miami. Expenses were also covered by RCI.

The tax evasion centered around "dance dollars." Authorities claim RCI underreported sales tax revenue generated from these. The auditor allegedly helped RCI settle tax audits for significantly less than owed, saving the company millions.

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RCI's Response:

RCI's lawyer denies the allegations and plans to fight the charges, asserting that all legitimate taxes have been paid, and their Manhattan clubs remain open.

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This case highlights a significant issue of tax evasion and corruption in New York City, promising a high-stakes legal battle ahead. The outcome will set a precedent for future tax compliance and enforcement within the city.