Executives of RCI Hospitality Holdings face allegations of tax evasion and bribery in a court proceeding based in New York.
RCI Hospitality Executives Indicted for Tax Fraud and Bribery
New York State Attorney General Letitia James announced the indictment of top executives of RCI Hospitality Holdings Inc., a strip-club and sports-bar operator that owns about 60 gentlemen's clubs across the country, on charges of criminal tax fraud, bribery, and conspiracy.
The indictment includes charges against five company executives, including CEO Eric Langan, and three RCI-owned strip clubs in Manhattan. The charges include nearly 80 counts against the company and its Manhattan clubs.
According to the indictment, the executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes. An investigation revealed that RCI executives bribed an auditor with the New York Department of Taxation and Finance.
The charges include conspiracy, bribery, and criminal tax fraud, among other crimes. Eric Langan, CEO of RCI Hospitality Holdings Inc., faces a maximum sentence of eight and one third to 25 years in prison if convicted of the top count of criminal tax fraud in the first degree. Timothy Winata, RCI's controller and accountant, is accused of traveling from Texas to New York to provide bribes to the auditor at various RCI clubs.
Ahmed "Ed" Anakar, RCI's director of operations, and Bradley Chhay, RCI's CFO, are also named in the indictment and face maximum sentences of eight and one third to 25 years in prison and five to 15 years in prison, respectively, if convicted on the bribery charges. Shaun Kevlin, a regional manager and later assistant director of nightclub operations, is also named in the indictment and faces a maximum sentence of five to 15 years in prison if convicted on the bribery charges.
A sixth person has been indicted but had not yet been arrested when the indictment was announced earlier this week.
In a statement, RCI attorney Daniel Horwitz of Tannenbaum Helpern expressed disappointment with the New York Attorney General's decision to move forward with an indictment. Horwitz stated that the company will defend itself against the "overreaching charges" and seek a just resolution. He also emphasized that RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.
The bribe involved avoiding the payment of more than $8 million in sales taxes to both New York City and the state between 2010 to 2024. The bribe included at least 13 free multi-day trips to Florida and up to $5,000 per day for private dances at RCI-owned strip clubs.
Last year, RCI closed a number of underperforming Bombshells locations, which is a 10-unit military-themed breastaurant chain that is also owned by RCI Hospitality Holdings Inc.
Lisa Jennings, a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants, and emerging chain concepts, provided further context on the situation. She noted that the indictment comes amidst a broader crackdown on the adult entertainment industry in New York, which has been under scrutiny for its tax practices.
The indictment is a significant development in the ongoing saga of RCI Hospitality Holdings Inc. and its executives, and it remains to be seen how the case will unfold in the coming months.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
