RCI Hospitality strip club execs bribed tax auditor with comped dances: NY AG

Core Points - New York Attorney General Letitia James announced the indictment of five top executives from RCI Hospitality Holdings, including CEO Eric Langan, for their involvement in a multi-million-dollar tax fraud and bribery scheme [2][8] - The scheme allegedly involved bribing a New York state auditor with trips and payments to avoid over $8 million in taxes from 2010 to 2024 [5][6] Group 1: Indictment Details - The executives are accused of providing the auditor with 13 complimentary trips to Florida and payments for private dances at RCI-owned strip clubs [3][5] - RCI's controller, Timothy Winata, allegedly traveled to Manhattan multiple times to deliver illegal bribes at RCI's clubs [4][8] - The indictment includes 79 counts of conspiracy, bribery, and criminal tax fraud against the executives and the three Manhattan clubs [8] Group 2: Financial Impact - Following the announcement of the indictment, RCI's shares dropped nearly 17% in late afternoon trading [8] - The alleged tax evasion involved the sale of "Dance Dollars," which customers purchased for private dances at RCI's strip clubs [5][6] Group 3: Company Response - RCI and the individuals involved deny the allegations and plan to defend themselves against what they describe as overreaching charges [9][10] - RCI has previously disclosed the investigation in its SEC filings and maintains a policy of paying all legitimate taxes [10]