A stunning indictment has revealed allegations of a brazen scheme to evade millions in taxes, orchestrated by executives at the parent company of several well-known New York City strip clubs. The Attorney General alleges a calculated effort to corrupt a state tax auditor with a lavish stream of benefits.
According to the charges, top leaders of RCI Hospitality Holdings Inc., the company behind Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret, allegedly showered a tax auditor with cash bribes, all-expenses-paid trips to Florida, and an astonishing amount of private entertainment. The value of these “promotional” expenses, disguised as legitimate business costs, reportedly reached thousands of dollars *per day*.
The alleged bribery extended over a fourteen-year period, from 2010 to 2024, with prosecutors claiming the auditor received at least thirteen luxurious trips to Florida. These weren’t simple vacations; they included premium hotel accommodations, fine dining, and access to unlimited private dances within the company’s own establishments.
The indictment details a conspiracy to avoid paying over $8 million in sales taxes. The core accusation centers on the deliberate manipulation of business records to conceal the true nature of the payments made to the auditor, effectively turning the clubs into instruments of corruption.
Defense attorneys are already pushing back, arguing that the allegations, while dramatic, don’t automatically equate to criminal intent. They suggest the case mirrors other high-profile financial investigations where prosecutors built narratives around potentially legitimate business decisions.
A key point of contention will be proving a direct “quid pro quo” – demonstrating that the auditor’s decisions were specifically influenced by the perks received. The defense argues that simply receiving benefits isn’t enough to establish bribery; there must be evidence of deliberate wrongdoing overlooked in exchange.
The timing of the indictment has also drawn scrutiny, with questions raised about the motivations of the Attorney General, who herself is facing legal challenges. Critics suggest the case may be a politically motivated attempt to generate headlines before an upcoming election.
The Attorney General is currently facing charges of bank fraud and making false statements related to a property purchase in Virginia, alleging she misrepresented the property’s use to secure more favorable loan terms. She has entered a plea of not guilty.
Named in the indictment are RCI Chief Executive Officer Eric Langan, Controller Timothy Winata, Chief Financial Officer Bradley Chhay, Operations Director Ahmed "Ed" Anakar, and Nightclub Operations Director Shaun Kevlin. An additional individual remains unnamed due to a sealed portion of the indictment.
RCI Hospitality Holdings Inc. and its three Manhattan clubs are also facing charges, including criminal tax fraud, bribery, conspiracy, and falsifying business records. The potential consequences are severe, with top executives facing up to 25 years in prison if convicted on the most serious counts.
The Attorney General has framed the case as a clear example of corporate greed and abuse of power, vowing to hold those responsible accountable and ensure fair tax contributions from all businesses. The case promises a complex legal battle with far-reaching implications.
