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3w ago

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

Prosecutors say perks for a state auditor won favorable outcomes on six sales-tax audits 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 grand jury filing names CEO Eric Langan, CFO Bradley Chhay, controller Timothy Winata, operations executive Ahmed “Ed” Anakar, regional manager Shaun Kevlin, and three Manhattan clubs: Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar.
  • The alleged conduct spanned 2010 through early 2024 and, according to authorities, avoided more than $8 million in New York state and city sales taxes.
  • Charging documents cite emails and texts about trips, cash, and logging bribe payments as “promotional” expenses, including a 2023 message boasting that a Vivid Cabaret audit was reduced to $47,000.
  • Prosecutors describe at least 13 Florida trips for the auditor with hotels, meals, free entry, and up to $5,000 per day for private dances, including at Tootsie’s Cabaret in Miami.
  • RCI and the individuals deny the allegations and pledge to fight the case; the company’s shares fell nearly 16% after the announcement, and a sixth indicted person has not yet been arraigned.