Strip club executives allegedly bribed tax auditor with lap dances and luxury trips to slash tax bills

In a dramatic legal development, a group of strip club executives stands accused of bribing a New York state tax auditor with cash, luxury trips to Florida, and extravagant lap dances to significantly reduce their tax obligations. This claim is part of an extensive indictment announced by Attorney General Letitia James.

The indictment, which includes 79 charges, targets senior figures at RCI Hospitality Holdings Inc., a Texas-based company that owns well-known strip clubs such as Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret. These executives are alleged to have disguised bribes as “promotional” expenses to evade over $8 million in sales taxes from 2010 to 2024.

According to prosecutors, the implicated auditor enjoyed at least 13 all-expenses-paid trips to Florida. During these trips, the auditor was purportedly lavished with hotel accommodations, dining experiences, and up to $5,000 daily for private dances at clubs owned by RCI.

Legs of an exotic dancer wearing high heels on stage

An image capturing a performance at the “2001 Odyssey” strip club on August 25, 2012, in Tampa, Florida. (Getty Images)

Federal defense attorney Ronald Chapman II weighed in on the case, describing the allegations as “sensational” and cautioning that they might not hold up under legal scrutiny. “Upon closer examination, the situation may appear differently,” Chapman shared with Fox News Digital. “This case is reminiscent of the Trump financial-fraud case, where prosecutors in New York constructed a broad narrative based on business decisions that might not actually breach the law.”

“When you look a little deeper, things start to look a little bit different,” Chapman told Fox News Digital. “This case reminds me of the [President] Trump financial-fraud case, where prosecutors in New York built a sweeping narrative around business judgments that may not actually violate the law.”

Chapman said prosecutors face an uphill battle to prove a quid pro quo and that the auditor’s decisions were directly influenced by the perks.

“It only turns into bribery when that is also done consistent with bad conduct, looking the other way on something,” he said. “I just don’t see that other side of the quid pro quo yet.”

He also questioned the timing of the charges, pointing to the embattled attorney general.

“We see, once again, a very late indictment being brought. That means somebody brought this case from a pile of cases and decided to pluck it out,” he said.

“Oftentimes we will see prosecutors right around the time they’re about to be facing re-election, trying to bring big cases like this with sensational headlines where they don’t really have the goods to fully handle the prosecution,” he said.

Letitia James speaking in press conference

Fannie Mae and Freddie Mac offices in New York will shutter in response to Attorney General Letitia James’ alleged “corrupt” business practices, Fox News Digital learned.  (Michael M. Santiago/Getty Images)

James is facing one count of bank fraud and one count of making false statements to a financial institution. The allegations stem from a home she purchased in 2020 in Norfolk, Virginia.

Prosecutors say James misrepresented the property as a secondary residence on loan/mortgage documents, when in fact they allege she used it as a rental investment property, which qualified her for more favorable loan terms. She has pleaded not guilty.

Rick's Cabaret at 50 West 33rd street in Manhattan.

Rick’s Cabaret at 50 West 33rd Street in Manhattan. (John Roca/NY Daily News Archive via Getty Images)

The indictment, filed in New York County Supreme Court, names 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 as defendants. A sixth individual has also been charged but was not identified because of the sealed indictment.

RCI and its three Manhattan-based clubs, Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret and Sports Bar, are also charged in the case, which includes counts of criminal tax fraud, bribery, conspiracy and filing false business records.

If convicted of the top counts, Langan, Winata and Anakar could each face up to 25 years in prison, while Chhay and Kevlin could face a maximum of 15 years.

James described the case as a blatant abuse of power by a publicly traded company seeking to skirt its tax obligations.

“RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” James said in a statement announcing the indictment. “I will always take action to fight corruption and ensure everyone pays their fair share.”

You May Also Like
French capital hosts Paris Saint-Germain parade after clashes marred Champions League win

Triumphant PSG Parade in Paris: Celebrations and Clashes After Champions League Victory

A vast assembly of Paris Saint-Germain enthusiasts congregated peacefully near the iconic…
Haunting image emerges as suspect in Virginia deputy's death spotted; $60K reward offered

Chilling Image Released of Suspect in Virginia Deputy’s Death; Authorities Announce $60K Reward for Capture

The man described as “armed and extremely dangerous” and sought in connection…
Elderly couple stabbed to death inside NYC apartment : cops

Elderly Couple Tragically Fatally Stabbed in New York City Apartment: Police Report

A man and a woman were discovered fatally stabbed inside a garden…
Scott Bessent says it's 'fitting' to put Trump's face on $250 bill: 'Great celebratory note'

Investor Scott Bessent Suggests Donald Trump’s Image for New $250 Bill as a ‘Symbolic Tribute

WASHINGTON — Treasury Secretary Scott Bessent has expressed enthusiastic support for the…
Drunk husband takes messy breakup with wife to the next level with home demolition

Intoxicated Spouse Escalates Divorce Drama by Demolishing Family Home

A domestic conflict in Pennsylvania escalated dramatically, leading to significant damage to…
Trans track athlete AB Hernandez competes in state championships as protests mount outside stadium

Trans Track Star AB Hernandez Shines at State Championships Amidst Heated Stadium Protests

On Saturday, transgender athlete AB Hernandez took part in the CIF State…
FBI hunts most wanted neighbor next door who allegedly faked cancer, scammed loved ones for luxury getaways

FBI Pursues ‘Next-Door Neighbor’ Accused of Cancer Fraud and Luxury Scams

Minnesota fraud mastermind to face sentencing for $250 million scheme Emily Compagno,…
United flight diverted to Madison: Man tries to breach cockpit of United Airlines flight 2005 from Chicago, forces hijacking alert

Chaos in the Skies: Man Attempts Cockpit Breach on United Flight 2005, Sparks Hijacking Alert

CHICAGO (WLS) — Wisconsin authorities reported to ABC News that a disruptive…
Suspect accused of killing 3 elderly men in Hawaii faces almost a dozen charges, including murder

Hawaii Tragedy: Suspect Charged with Multiple Counts, Including Murder, in Triple Homicide of Elderly Men

Authorities announced on Sunday that a suspect, accused of the murder of…
A rematch of 1999: It's Spurs vs. Knicks for NBA title, after teams met in NBA Cup final as well

Relive the Epic 1999 Showdown: Spurs and Knicks Clash Again for NBA Glory!

OKLAHOMA CITY — A familiar storyline unfolds as the New York Knicks…
Maine Dem Senate Candidate Platner Says He Forgot to Close His Kik Account. Sure.

Maine Senate Candidate’s Kik Account Controversy: A Simple Oversight or Something More?

Maine’s Democratic Senate hopeful, Graham Platner, finds himself entangled in a new…
California neighborhood on alert after bat found near sidewalk tests positive for rabies virus

Rabies Alert: Infected Bat Discovered in California Neighborhood Spurs Safety Concerns

A rabid bat discovered near a residential area in California has led…