Strip club executives charged with bribing NY official to avoid paying $8M in taxes

Core Points - A company, RCI Hospitality Holdings, and several of its executives have been charged with bribing a government official to evade over $8 million in sales taxes owed to New York City and the state of New York [1][2][9] - The alleged bribery scheme involved providing free trips and spending money to a New York state tax auditor from 2010 to 2024, in exchange for favorable treatment during tax audits [2][8] - A grand jury indictment has been unsealed, charging RCI, five executives, and three clubs in Manhattan with conspiracy, bribery, tax fraud, and other crimes [3][4] Company Overview - RCI Hospitality Holdings is publicly traded on the Nasdaq and operates over 60 clubs, sports bars, and restaurants across the United States, including multiple Rick's Cabaret locations in major cities [3] - The company also owns two additional businesses in Manhattan [3] Legal Proceedings - The indictment includes 79 counts against RCI and its executives, with specific allegations that they used their clubs to facilitate bribery to avoid tax liabilities [3][4] - RCI's legal representation has stated that the allegations are baseless and that the company intends to contest the charges in court [5][6] Allegations of Bribery - Prosecutors allege that RCI provided the auditor with at least 13 complimentary trips to Florida and up to $5,000 per day for private dances at RCI clubs, covering additional expenses such as hotels and restaurants [8] - The company is accused of failing to pay over $8 million in sales taxes related to "dance dollars," which are purchased by customers for private dances, and of receiving significantly reduced tax liabilities due to the alleged bribery [9]