Strip Club Group Accused of Bribing Auditors

A significant strip club organization stands accused of bribing state auditors, allegedly to dodge over $8 million in sales tax owed to New York City over a span of 14 years. Prosecutors unveiled these charges on Tuesday.

The New York Attorney General’s office has filed 79 criminal charges against RCI and five of its executives, accusing them of participating in a scheme to commit tax fraud.

This operation appears to be quite bold, with RCI accountants reportedly making at least ten trips from Texas to New York to entertain former auditors at their establishments, which include the Manhattan Zigle Joint, Rick’s Cabaret, Vibrant Cabaret, and the Hoop Court Bar.

Attorney General Letitia James commented, “RCI executives are shamelessly using strip clubs to finance their way out of paying millions in taxes. I’m committed to fighting corruption and ensuring everyone contributes their fair share.”

According to the allegations, RCI and its executives have been offering auditors various tempting incentives since 2010, including at least 13 complimentary multi-day trips to Miami.

Internal communications reveal that the AG’s office discussed how much cash RCI executives should pass on to auditors in exchange for favorable tax assessments.

RCI President Eric Langan reached out to CFO Ahmed Anakar, discussing the urgent need to approach the state about their tax situation, suggesting they might soon need to pay $3 million in sales tax.

In return for cash, trips, and meals, state employees, whose identities have not been disclosed, provided RCI with advantageous treatment during six state audits.

The auditors reportedly agreed to resolve back tax issues for amounts significantly lower than what was actually owed.

In a 2018 conversation, Langan expressed to Anakar that an auditor had shown interest in their sales tax situation, hinting at ongoing discussions regarding this matter.

One of the auditors allegedly remarked to RCI accountant Tim Winta about how this is just how business is conducted in the country, suggesting a certain level of acceptance of these practices.

A text from 2023 indicated that a man associated with RCI had spent $47,000 at Vivid New York but had also traveled multiple times.

Daniel J. Holwitz, an attorney representing RCI, stated that the company and the executives facing indictment are pursuing a fair resolution while denying the allegations and taking necessary steps to address the claims.