Letitia James Charged 5 RCI Execs with Tax Fraud and Bribery, New Y…

New York – In a shocking turn of events, top execs of RCI Hospitality Holdings, Inc. (RCI), the operators of strip clubs across the country, are facing 79-count indictments for a massive tax fraud and bribery scheme. Attorney General Letitia James has charged five RCI executives with conspiracy, bribery, and criminal tax fraud.

The investigation, spearheaded by the Office of the Attorney General (OAG), exposed a plot where RCI execs paid over $8 million in bribes to a New York state tax auditor. In return, the auditor agreed to settle sales tax audits significantly below what was owed, saving RCI millions.

The audit official, identified as a former supervisor at the Department of Taxation and Finance (DTF), was lavished with 13 trips to Florida, where he received up to $5,000 per day for private dances at RCI-owned strip clubs. These expenses were paid by RCI execs, including Eric Langan, President and CEO; Bradley Chhay, CFO; Ahmed Anakar, Director of Operations; and Shaun Kevlin, Assistant Director of Nightclub Operations.

RCI’s controller, Timothy Winata, was directly involved in providing the bribes and accompanied the auditor on trips to RCI clubs. According to court documents, after one trip, the auditor texted Winata expressing his satisfaction with the experience.

The scheme also involved falsifying business records of RCI strip clubs, recording cash payments as ‘promotional expenses,’ and evading over $8 million in sales taxes on the sale of ‘Dance Dollars.’

Attorney General James emphasized the significance of this case in combating corruption. ‘RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,’ she said. The resolution of these charges is anticipated with great interest in the court.