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NY AG Indicts RCI Hospitality and Five Executives in $8 Million Tax Bribery Case

Prosecutors describe a decade-long scheme to sway sales tax audits using Florida trips, cash, private dances.

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FILE - Eric Langan, president and CEO of Rick's Cabaret International Inc., speaks during the company's annual stockholders meeting, Aug. 27, 2004, in Houston. (AP Photo/Pat Sullivan, file)
The office of state Attorney General Letitia James has indicted the parent company of Rick's Cabaret and other Manhattan strip clubs for tax fraud and bribery. A former auditor with the state Department of Taxation and Finance also is expected to face criminal charges.

Overview

  • An unsealed 79-count indictment charges RCI Hospitality, three Manhattan clubs, and five senior executives over audits spanning 2010 to 2024, with a sixth defendant listed but unnamed because he has not been arrested.
  • Prosecutors say the scheme helped the company avoid more than $8 million in New York City and state sales taxes by securing favorable outcomes in at least six sales tax audits.
  • The alleged bribes included at least 13 complimentary multi-day trips to Florida with up to $5,000 per day for private dances, hotel stays, and meals, plus cash delivered at RCI’s Manhattan clubs.
  • Named defendants include CEO Eric Langan, CFO Bradley Chhay, operations director Ahmed Anakar, NYC regional manager Shaun Kevlin, and controller Timothy Winata, with records allegedly falsified as “promotional” expenses and texts describing reduced penalties.
  • The indictment centers on taxes tied to customer “Dance Dollars,” and states that if convicted on top counts, Langan, Winata, and Anakar face up to 25 years in prison, while Chhay and Kevlin face up to five.