Managers of a company that owns strip clubs throughout the country are responsible for bribing a New York officer with free travel to some locations and with private dancing to prevent them from paying more than $ 8 million in sales tax, the authorities said Tuesday.
RCI Hospitality Holdings, based in Houston, received favorable treatment during at least six tax audits that were performed for more than ten years in exchange for the benefits given to a state auditor, said New York Attorney-General Letitia James.
James claims that RCI has given the auditor at least 13 free trips to Florida, including hotels meals, plus up to $ 5,000 a day for private dancing in the strip clubs, including Tootsie's cabaret in Miami. The auditor also received free dancing, eating and access at clubs in New York, the authorities said.
“RCI's managers shamelessly used their strip clubs to drill their way out of paying millions of dollars in taxes,” James said in a statement.
According to the company's website, RCI Hospitality, publicly traded on the Nasdaq Composite, owns and operates more than 60 clubs and sports bars and restaurants in the province, including Rick's cabaret locations in more than a dozen cities, including New York, including New York, according to the company's website. It also owns two other companies in Manhattan.
A 79-count Grand Jury-Actrency that was unlocked on Tuesday, Co-charges RCI, five of his managers and the three clubs in Manhattan with conspiracy, bribery, tax fraud and other crimes.
Daniel Horwitz, a lawyer in New York for RCI, disputed the allegations and said that the defendants will fight the charges before the court.
“We are clearly disappointed about the decision of the attorney general of the New York to continue with an indictment and look forward to the allegations,” Horwitz said in a statement. “We remind everyone that these charges only contain allegations that we think they are unfounded. RCI and the persons involved are assumed to be innocent and must have their day before court.”
He added that RCI's policy is to pay “all legitimate and non-guided taxes” and that all three clubs of Manhattan remain open.
The indictment claims that RCI has paid no more than $ 8 million in the sales tax of the city and the state on the sale of 'dance dollars', which are purchased by customers and exchanged for private dancing.
In exchange for the bribes, the auditor agreed to assess “considerably less” in unpaid sales tax, interest and fines then actually owed by RCI's New York Clubs and to prevent the state from carrying out extra taxAudits from Rick's Cabaret, says the indictment.
The office of James and the indictment did not mention the auditor, which worked for the Ministry of Taxation and Finance of the State. It stated that a sixth person who was not called publicly was charged but was not yet arrested. James's office refused to say whether that person was the auditor.
Among the RCI leaders who have been charged, Eric Langan van Bellaire, Texas, Chief Executive Officer, president and chairman of the board are; And Timothy Winata van Houston, a controller and accountant. Prosecutors claim that Langan and other managers have authorized and supervised the bribes, and Winata took directly for the bribes and accompanied the auditor for traveling to the clubs.
According to the indictment of the Winata auditor in 2022 and said: “This was the best journey I had in Florida. The girls were very beautiful and nice.” He wrote that there were 'so many beautiful women' on Thursday evening and he had 'many lap dancing instead of going to the room'. He thanked Winata and said he was hoping for a new trip for the summer.
