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yesterday

RCI Hospitality, Executives Indicted in 79-Count New York Bribery and Tax-Fraud Case

Prosecutors say perks for a state auditor helped the company reduce liabilities on taxes tied to its “Dance Dollars” by more than $8 million.

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

  • New York Attorney General Letitia James unsealed charges against RCI Hospitality, CEO Eric Langan, CFO Bradley Chhay, Ahmed “Ed” Anakar, Shaun Kevlin, controller Timothy Winata, and three Manhattan clubs.
  • The indictment alleges a 2010–2024 scheme in which a Department of Taxation and Finance auditor received at least 13 Florida trips with hotels and meals and up to $5,000 per day for private dances, plus bribes delivered at the Manhattan venues.
  • Prosecutors say the favors yielded lenient outcomes in at least six sales-tax audits and enabled RCI to avoid more than $8 million in city and state sales taxes related to its in‑house “Dance Dollars.”
  • Emails and texts quoted in the filing describe efforts to cut assessments, including a 2023 message that a bill at Vivid Cabaret was reduced to $47,000 with the expectation of more trips for the auditor.
  • The defendants deny wrongdoing, RCI shares fell about 16% on the news, the three New York clubs remain open, and a sixth indicted individual has not yet been arrested or publicly named.