A group of executives from strip clubs is facing serious allegations of bribing a New York state tax assessor with cash, extravagant trips to Florida, and lap dances in an attempt to reduce their tax liabilities by millions. This comes from a comprehensive indictment issued by Attorney General Letitia James.
The indictment consists of 79 counts and accuses top figures from Texas-based RCI Hospitality Holdings, which owns Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret, of disguising bribes as “promotional” fees. The company allegedly evaded over $8 million in sales taxes during the period from 2010 to 2024.
According to the prosecution, at least 13 auditors were treated to all-expenses-paid trips to Florida, while the company’s executives received up to $5,000 daily for accommodations, dining, and private dances at RCI’s clubs.
In a related matter, Federal Defender Ronald Chapman II argued that although the allegations are striking, they might not demonstrate criminal intent in court. He suggested that a deeper examination could reveal a different picture, similar to how New York prosecutors previously handled President Trump’s financial fraud case by framing it around questionable business decisions that might not have violated the law.
Chapman expressed skepticism about the prosecutors’ ability to establish a clear quid pro quo, stressing that the determination of bribery hinges on the actions being carried out blindly alongside other misconduct. He implied that the full scope of the alleged payoff has yet to be unveiled.
He also raised concerns about the timing of the indictments, hinting that Attorney General James might be targeting high-profile cases to bolster her public image, particularly during an election cycle when such sensational headlines attract attention.
Moreover, Letitia James is herself facing federal charges relating to bank fraud for allegedly misrepresenting a property purchase in Norfolk, Virginia, in 2020. She’s accused of describing the home as a secondary residence on loan documents, while she was actually using it as an investment property. She has pleaded not guilty.
The indictment, which was filed in New York County Supreme Court, includes prominent individuals such as RCI CEO Eric Langan and several other executives as defendants. Additionally, their establishments, including Rick’s Cabaret, are also caught up in charges of tax evasion and bribery. If convicted, the executives could face significant prison time.
James characterized the situation as a gross misuse of authority by a public company looking to sidestep its tax responsibilities, vowing to combat corruption and ensure fair tax contributions from all parties involved.
