An organization that owns strip golf equipment across the nation and several other of its executives have been charged with bribing a authorities official with free journeys to among the golf equipment and hundreds of {dollars} in spending cash to keep away from paying greater than $8 million in gross sales taxes to New York Metropolis and the state of New York, prosecutors mentioned Tuesday.
New York Lawyer Basic Letitia James mentioned the alleged scheme by Houston-based RCI Hospitality Holdings and its company leaders ran from 2010 to 2024 and concerned bribing a New York state tax auditor, in change for receiving favorable therapy throughout no less than six tax audits that have been carried out over a decade.
RCI Hospitality, publicly traded on the Nasdaq composite, owns and operates greater than 60 golf equipment and sports activities bars and eating places throughout the county, together with Rick’s Cabaret institutions situated in additional than a dozen cities together with New York Metropolis, in keeping with the corporate’s web site. It additionally owns two different companies in Manhattan.
A 79-count grand jury indictment that was unsealed Tuesday costs RCI, 5 of its executives and the three golf equipment in Manhattan with conspiracy, bribery, tax fraud and different crimes.
“RCI’s executives shamelessly used their strip golf equipment to bribe their means out of paying hundreds of thousands of {dollars} in taxes,” James mentioned in an announcement. “I’ll all the time take motion to struggle corruption and guarantee everybody pays their fair proportion.”
Daniel Horwitz, a New York lawyer for RCI, disputed the allegations and mentioned the defendants will struggle the costs in courtroom.
“We’re clearly disillusioned with the New York Lawyer Basic’s determination to maneuver ahead with an indictment and sit up for addressing the allegations,” Horwitz mentioned in an announcement. “We remind all people that these indictments comprise solely allegations, which we imagine are baseless. RCI and the people concerned are presumed harmless and needs to be allowed to have their day in courtroom.”
He added that RCI’s coverage is to pay “all professional and non-contested taxes” and all three Manhattan golf equipment stay open.
Among the many RCI executives who have been indicted are Eric Langan of Bellaire, Texas, chief government officer, president and board chairman; and Timothy Winata of Houston, a controller and accountant. Prosecutors allege Langan and different executives approved and oversaw the bribes, and Winata instantly supplied the bribes and accompanied the auditor on journeys to the golf equipment.
James’ workplace didn’t identify the New York state auditor. It mentioned {that a} sixth one who was not publicly named was indicted however not but arrested. James’ workplace declined to say whether or not that individual was the auditor. The identify of the auditor, who labored for the New York State Division of Taxation and Finance, is redacted within the indictment.
Prosecutors mentioned RCI gave the auditor no less than 13 complimentary, multiday journeys to Florida and as much as $5,000 per day to spend on non-public dances at RCI strip golf equipment, together with Tootsie’s Cabaret in Miami. The auditor’s lodge and restaurant bills have been additionally paid for by RCI, authorities mentioned.
Winata additionally traveled from Texas to Manhattan to provide the auditor bribes on the three Manhattan golf equipment — Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret and Sports activities Bar, prosecutors mentioned.
The indictment alleges RCI didn’t pay over $8 million in gross sales taxes on the sale of “dance {dollars},” that are bought by prospects and redeemed for personal dances. The auditor, prosecutors alleged, settled tax audits of RCI’s Manhattan golf equipment for considerably much less in again taxes, penalties and curiosity than have been owed, saving the corporate hundreds of thousands of {dollars}.
