RCI Hospitality strip club execs bribed tax auditor with comped dances: NY AG
Five top executives of publicly traded strip club operator RCI Hospitality Holdings — including its CEO Eric Langan — have been indicted in connection with a multi-million-dollar criminal tax fraud and bribery scheme, New York Attorney General Letitia James announced Tuesday.
The scheme included RCI executives allegedly bribing a New York state Department of Taxation and Finance auditor and supervisor with 13 complimentary multi-day trips to Florida, where he was given up to $5,000 per day for “private dances at RCI-owned strip clubs, including Tootsie’s Cabaret in Miami,” James’ office said in a press release.
And “on at least 10 occasions since 2010, Timothy Winata, RCI’s controller and accountant, traveled to Manhattan from Texas to provide the auditor with illegal bribes at RCI’s three Manhattan clubs, Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar,” the office said.
The alleged bribes helped RCI avoid paying more than $8 million in New York City and state taxes from 2010 through 2024, after the auditor gave them favorable treatment in at least six separate sales tax audits, according to the AG’s office.
The taxes involved the sale of “Dance Dollars,” which customers of RCI’s strip clubs bought and redeemed for private dances.
A lawyer for RCI, Daniel Horwitz, in a statement to CNBC, said, “RCI, the individuals involved, and the three clubs deny the allegations and will take all necessary action to defend themselves against these overreaching charges, while continuing to seek a just resolution.”