5 top executives of strip club operators RCI Hospitality Holdings – Including CEO Eric Langan – New York Attorney General Letitia James, who was charged with millions of dollars in criminal tax fraud and bribery schemes, announced Tuesday.
The scheme included RCI executives who allegedly fed bribes on 13 free multi-day trips to Florida to the New York State Department of Taxation, the Financial Audit Bureau and Supervisors. He was given up $5,000 a day for “private dances at RCI-owned strip clubs, including Tootsie’s Cabaret in Miami.”
“Timothy Winata, the RCI controller and accountant, traveled from Texas to Manhattan, providing illegal bribery at RCI’s three Manhattan clubs, Rick’s cabaret, Veeve Cavalley, and Hoop Cavalley and sports bars.
These three clubs were also charged in the case.
“After one such trip in February 2022, the auditor texted Winata. “This was the best trip I’ve had in Florida. The girls were so beautiful and lovely. I hope I can do another trip before summer,” according to James’ office.
According to the AG’s office, after auditors provided favorable treatment with at least six separate sales tax audits, the RCI helped to avoid paying more than $8 million in New York City and state taxes from 2010 to 2024.
The tax included sales of “dance dollars” purchased and redeemed by customers at RCI strip clubs for private dance.
Langan is accused of personally overseeing the RCI negotiations with the auditor and approving the payment of bribery.
“On April 12, 2018, for Weinata to be in Manhattan and meet with auditors in Rick’s cabaret and elsewhere, Langan said the text (Ahmed director of operations) Anakar: “We need to talk about New York and talk about Dancedol,” and the RCI said, “We’ll reach 3M in sales tax.”
“That same day, Langan texted Anakar. “I think it’s been making interest in New York’s sales tax of over 350. Tim (Winata) is in discussion with the auditor tonight.”
The Attorney General’s Office said the trip to strip the club was “approved, supervised and supervised” by Auditor and Bribery Bri chief Langan, RCI chief financial officer Bradley Chhay, 41, Anakar, 58 and 45-year-old Shaun Kevlin, assistant regional manager at RCI’s Night Chite Clubs oversition oversition, and 57-year-old Langan, head of New York City Clubs.
All four men were charged in the case, along with 71-year-old Winata, along with three Manhattan clubs.
The AG’s office said the sixth person will be charged and will be arrested at a later date. At that point, the charges will not be sealed.
RCI’s shares fell nearly 17% in late afternoon transactions after 79 counts of indictment alleged conspiracy, bribery, criminal tax fraud and other charges.
“RCI executives are empowering how they can embarrass themselves on strip clubs and get out of paying millions of dollars of taxes,” James said in a statement.
“I always fight corruption and act to ensure that everyone pays a fair distribution,” she said.
“The RCI, the parties and three clubs will deny the claims and file all the necessary lawsuits to defend these excess inheritance fees,” RCI’s attorney Daniel Holwitz said in a statement to CNBC.
“We are clearly disappointed with the decision to proceed with the New York Attorney General’s indictment and look forward to dealing with the allegations,” Horwitz said. “We remind everyone that these indictments only include claims that appear unfounded. The RCI and its officials should be presumed innocent and allowed to spend the day in court.”
“RCI previously disclosed an investigation into the New York Attorney General’s SEC application,” the attorney said. “As a publicly and audited company, RCI has a policy of paying all legitimate and non-conditional taxes.”
