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.
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.
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. (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.”
