Executives at an organization that owns strip golf equipment across the nation have been charged with bribing a New York official with free journeys to among the venues and with non-public dances to keep away from paying greater than $8 million in gross sales taxes, authorities mentioned Tuesday.
Houston-based RCI Hospitality Holdings and its company leaders acquired favorable remedy throughout not less than six tax audits that had been carried out over a decade in trade for the perks given to a state auditor, New York Legal professional Common Letitia James mentioned.
James alleges RCI gave the auditor not less than 13 complimentary journeys to Florida, together with resorts meals, plus as much as $5,000 per day for personal dances at its strip golf equipment, together with Tootsie’s Cabaret in Miami. The auditor additionally acquired free dances, meals and admission at golf equipment in New York, authorities mentioned.
“RCI’s executives shamelessly used their strip golf equipment to bribe their approach out of paying thousands and thousands of {dollars} in taxes,” James mentioned in an announcement.
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 in additional than a dozen cities together with New York, 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.
Daniel Horwitz, a New York lawyer for RCI, disputed the allegations and mentioned the defendants will struggle the fees in courtroom.
“We’re clearly disenchanted with the New York Legal professional Common’s resolution to maneuver ahead with an indictment and stay up for addressing the allegations,” Horwitz mentioned in an announcement. “We remind all people that these indictments include solely allegations, which we consider are baseless. RCI and the people concerned are presumed harmless and must be allowed to have their day in courtroom.”
He added that RCI’s coverage is to pay “all official and non-contested taxes” and all three Manhattan golf equipment stay open.
The indictment alleges RCI did not pay over $8 million in metropolis and state gross sales taxes on the sale of “dance {dollars},” that are bought by clients and redeemed for personal dances.
In trade for the bribes, the auditor agreed to evaluate “considerably much less” in unpaid gross sales taxes, curiosity and penalties than was really owed by RCI’s New York golf equipment and to cease the state from performing extra tax audits of Rick’s Cabaret, the indictment says.
James’ workplace and the indictment didn’t identify the auditor, who labored for the state’s Division of Taxation and Finance. 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.
Among the many RCI executives who had 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 offered the bribes and accompanied the auditor on journeys to the golf equipment.
In accordance with the indictment, the auditor texted Winata in 2022 saying: “This was the most effective journey I had in Florida. The women had been very lovely and good.” He wrote that on Thursday night time there have been “so many lovely girls,” and he had “many lap dances as a substitute of going to the room.” He thanked Winata and mentioned he hoped for an additional journey earlier than the summer season.
