RCI Execs Bribed Tax Auditor with Lap Dances: $8M Fraud

NEW YORK – The glitter and grime of New York City’s strip club scene just got a whole lot stickier. Top executives at RCI Hospitality Holdings, Inc. are facing a 79-count indictment after Attorney General Letitia James unveiled a brazen scheme to dodge over $8 million in taxes through bribery and fraud. The target? A compromised auditor within the New York Department of Taxation and Finance.

The investigation, spearheaded by the Attorney General’s Office (OAG), reveals a decade-long pattern of illicit activity. From 2010 to 2024, RCI executives allegedly showered a DTF auditor with free trips to Florida, complete with $5,000-a-day allowances for “private dances” at RCI’s Tootsie’s Cabaret in Miami. Hotels, meals, and the auditor’s every whim were footed by the company, all in exchange for favorable treatment during sales tax audits.

Five RCI leaders are now charged with conspiracy, bribery, and criminal tax fraud: Eric Langan, RCI’s president and Chief Executive Officer; Bradley Chhay, RCI’s Chief Financial Officer; Ahmed Anakar, RCI’s Director of Operations; Shaun Kevlin, a Regional Manager turned Assistant Director of Nightclub Operations; and Timothy Winata, RCI’s controller and accountant. Three Manhattan-based RCI clubs – Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar – are also named in the indictment.

The scheme centered around RCI’s “Dance Dollars,” an in-house currency used for private dances. The company allegedly failed to collect and remit over $8 million in sales taxes on these transactions. Winata, the accountant, acted as the direct conduit for bribes, personally delivering cash to the auditor during trips to the Manhattan clubs. A text message from the auditor after a February 2022 trip speaks volumes: “This was the best trip I had in Florida. The girls were very beautiful and nice…I hope we can have another trip before the summer.”

According to the OAG, the auditor, in return for the lavish gifts, agreed to settle RCI’s tax audits for far less than what was actually owed, saving the company millions. The fraudulent payments were cleverly disguised as “promotional” expenses in RCI’s business records. “RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” Attorney General James stated. “I will always take action to fight corruption and ensure everyone pays their fair share.”

Amanda Hiller, Acting Commissioner and General Counsel of the State Department of Taxation and Finance, added, “Tax Department Internal Affairs investigators worked closely with the Attorney General’s Office throughout the investigation of this case.” The case is a stark reminder that even the most carefully concealed schemes can – and will – be brought to light. The investigation is ongoing, and the defendants face significant prison time if convicted on all charges.