{"id":1106,"date":"2025-09-17T18:01:57","date_gmt":"2025-09-17T18:01:57","guid":{"rendered":"http:\/\/www.agencywebdesigners.com\/?p=1106"},"modified":"2025-09-18T14:25:50","modified_gmt":"2025-09-18T14:25:50","slug":"company-that-owns-denver-strip-clubs-accused-of-bribing-ny-tax-auditor-with-private-dances-other-perks","status":"publish","type":"post","link":"http:\/\/www.agencywebdesigners.com\/index.php\/2025\/09\/17\/company-that-owns-denver-strip-clubs-accused-of-bribing-ny-tax-auditor-with-private-dances-other-perks\/","title":{"rendered":"Company that owns Denver strip clubs accused of bribing NY tax auditor with private dances, other perks"},"content":{"rendered":"

Executives at a company that owns strip clubs around the country \u2014 including five in Denver \u2014 have been charged with bribing a New York official with free trips to some of the venues and with private dances to avoid paying more than $8 million in sales taxes, authorities said Tuesday.<\/p>\n

Houston-based RCI Hospitality Holdings and its corporate leaders received favorable treatment during at least six tax audits that were performed over a decade in exchange for the perks given to a state auditor, New York Attorney General Letitia James said.<\/p>\n

James alleges RCI gave the New York auditor at least 13 complimentary trips to Florida, including hotels and meals, plus up to $5,000 per day for private dances at its strip clubs, including Tootsie\u2019s Cabaret in Miami. The auditor also received free dances, food and admission at clubs in New York, authorities said.<\/p>\n

\u201cRCI\u2019s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,\u201d James said in a statement.<\/p>\n

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Colorado strip clubs persistently steal wages from their workers, dancers say: \u201cWe have to pay to work\u201d<\/a><\/p>\n<\/blockquote>\n

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RCI Hospitality, publicly traded on the Nasdaq composite, owns and operates more than 60 clubs and sports bars and restaurants across the country, including Rick\u2019s Cabaret establishments in more than a dozen cities, including New York, according to the company\u2019s website. It also owns two other businesses in Manhattan.<\/p>\n

The company purchased five Denver clubs in 2021: Diamond Cabaret, Rick\u2019s Cabaret, PT\u2019s Showclub, PT\u2019s Centerfold and Scarlett\u2019s Cabaret.<\/p>\n

A multi-year investigation<\/a> announced by Denver’s labor department in February found Diamond Cabaret and Rick\u2019s Cabaret engaged in widespread wage theft involving hundreds of workers.<\/p>\n

The investigation found the adult venues \u201cviolated nearly every applicable provision\u201d of Denver\u2019s minimum-wage laws, including misclassifying entertainers as exempt from city ordinances; failing to pay staff the city\u2019s minimum wage; and stealing money from entertainers by requiring them to pay fees for the privilege of working.<\/p>\n

Denver Labor ordered the company to pay $14 million in penalties and restitution. The strip clubs subsequently sued the city, arguing officials overstepped their authority.<\/p>\n

In the New York case, a\u00a079-count grand jury indictment that was unsealed Tuesday charges RCI, five of its executives and the three clubs in Manhattan with conspiracy, bribery, tax fraud and other crimes.<\/p>\n

Daniel Horwitz, a New York lawyer for RCI, disputed the allegations and said the defendants will fight the charges in court.<\/p>\n

\u201cWe are clearly disappointed with the New York attorney general\u2019s decision to move forward with an indictment and look forward to addressing the allegations,\u201d Horwitz said in a statement. \u201cWe remind everybody that these indictments contain only allegations, which we believe are baseless. RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.\u201d<\/p>\n

He added that RCI\u2019s policy is to pay \u201call legitimate and non-contested taxes,\u201d and all three Manhattan clubs remain open.<\/p>\n

The indictment alleges RCI failed to pay over $8 million in city and state sales taxes on the sale of \u201cdance dollars,\u201d which are purchased by customers and redeemed for private dances.<\/p>\n