Lap Dance Dollars

Executives from world's largest publicly traded strip club company allegedly bribed a public auditor to dodge $8 million in sales taxes

“If you’re at a strip club, and the sun is out, you got some problems!” – Chris Rock

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In all my decades of covering business blunders, I have never seen an allegation like this. Who’d have thought you could bribe a public tax auditor with lap dances to dodge millions of dollars in sales taxes?

This morning, New York Attorney General Letitia James announced a 79-count indictment against five top executives of Houston-based RCI Hospitality Holdings, the world’s largest publicly traded strip club operator.

You may know RCI as Rick’s Cabaret, Tootsie’s Cabaret, XTC Cabaret, Vivid Cabaret, Hoops Cabaret or Club Onyx – and if you do, don’t tell your wife. Despite it’s tacit stamp of approval from Wall Street, this is a company that apparently runs as sleazy as the back-alley industry it has attempted to gentrify.

RCI has been under fire before, but these criminal charges are a first. In 2020, RCI settled a civil action from the Securities and Exchange Commission for failing to disclose to investors some perquisites it gave to top executives. It has also had to settle investor lawsuits for alleged securities violations.

Dance Dollars – Better than bitcoin? (Comic: ChatGPT)

Forget crypto. RCI executives created “Dance Dollars,” an in-house currency that can be exchanged for lap dances.

The redacted indictment alleges company executives plied a former New York state tax auditor with $5,000 worth of dance dollars per day during at least 13 complimentary, multi-day trips to Florida. It was allegedly part of an overall scheme to avoid $8 million in sales taxes.

Talk about grinding the numbers.

RCI has a market capitalization of less than $230 million. Its stock fell about 9% on the news this morning.

But forget about the investors. Think about $8 million worth of lap dances could do to your soul? Especially on top of a greasy New York state auditor?

No word on what happened to the lap-dance-loving auditor, other than he has retired. But CEO Eric Langan, 57, of Bellaire, Texas, was indicted. So were four other top executives:

• Ahmed “Ed” Anakar, 58, of Plantation, Fla.

• Bradley Chhay, 41, of Conroe, Texas.

• Shaun Kevlin, 45, of Warwick, NY.

• Timothy Winata, 71, of Houston, Texas.

A sixth person has also been indicted but not yet arrested, James’ press release said.

RCI issued a statement this morning denying the allegations.

‘We remind everybody that these indictments contain only allegations, which we believe are baseless,” said the company’s lawyer, Daniel Horwitz. “RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.”

These guys remind me of Moe, the very smartest of the Three Stooges, who can keep getting smacked in the head and keep everybody laughing.

In the press release Horwitz also tossed in this reminder: “All three New York City clubs remain open for business.”

Yeah, and don’t forget to bring your Dance Dollars.