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17h ago

RCI Hospitality and Senior Executives Indicted in New York Bribery and Tax-Fraud Case

Prosecutors say a yearslong quid pro quo with a state tax auditor secured favorable audits on sales tied to the clubs’ “Dance Dollars.”

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)
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Overview

  • A 79-count indictment unsealed Sept. 16 charges RCI, CEO Eric Langan, CFO Bradley Chhay, executives Ahmed Anakar, Shaun Kevlin and Timothy Winata, plus three Manhattan subsidiaries, with conspiracy, bribery, criminal tax fraud and related offenses.
  • The filing alleges the group bribed a New York Department of Taxation and Finance auditor from 2010 to 2024 to obtain lenient outcomes in at least six sales‑tax audits.
  • Perks described include at least 13 company-funded trips to Florida and up to $5,000 per day for private dances, as well as cash provided at Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret in Manhattan.
  • Prosecutors cite emails, texts and accounting entries that allegedly disguised bribes as “promotional” expenses, including a 2023 message boasting an audit settlement at Vivid Cabaret reduced to about $47,000.
  • RCI and the individuals deny wrongdoing and vow to fight the charges; shares fell about 16% after the news, the clubs remain open, and a sixth indicted person is named under seal pending arrest.