Strip Club Execs Allegedly Gave Auditor Free Dances

Executives at a company that owns strip clubs around the country 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. 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.

James alleges RCI gave the auditor at least 13 complimentary trips to Florida, including hotels, meals, and up to $5,000 per day for private dances at its strip clubs, including Tootsie's Cabaret in Miami. The auditor also received free dances, food, and admission at clubs in New York, authorities said. A 79-count grand jury indictment that was unsealed on Tuesday charges RCI, five of its executives, and three clubs in Manhattan with conspiracy, bribery, tax fraud, and other crimes. A New York lawyer for RCI disputed the allegations and said the defendants will fight the charges in court.

The indictment alleges RCI failed to pay more than $8 million in city and state taxes on the sale of "dance dollars," which are purchased by customers and redeemed for private dances. In exchange for the bribes, the auditor agreed to assess "substantially less" in unpaid sales taxes, interest, and penalties than was actually owed by RCI's New York clubs, and to stop the state from performing additional tax audits of Rick's Cabaret, the indictment says. James' office and the indictment didn't name the auditor, who worked for the state's Department of Taxation and Finance. It said that a sixth person who wasn't publicly named was indicted but not yet arrested. James' office declined to say whether that person was the auditor.

story continues below

Among the RCI executives who were indicted are CEO Eric Langan of Bellaire, Texas; and Timothy Winata of Houston, a controller and accountant. Prosecutors allege Langan and other executives authorized and oversaw the bribes, and Winata directly provided the bribes and accompanied the auditor on trips to the clubs. According to the indictment, the auditor texted Winata in 2022 saying: "This was the best trip I had in Florida. The girls were very beautiful and nice." He wrote that on one particular night there had been "so many beautiful women," and he had "many lap dances instead of going to the room." He said he hoped for another trip before the summer, reports the AP.