New York Attorney General Letitia James on Monday announced the indictment of top executives of RCI Hospitality Holdings, Inc., which operates strip clubs nationwide, in connection with a multimillion-dollar tax fraud and bribery scheme.
The 79-count indictment charges RCI, five executives, and three Manhattan-based clubs—Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar—with conspiracy, bribery, and criminal tax fraud. Investigators said RCI executives bribed a New York Department of Taxation and Finance auditor to avoid paying more than $8 million in sales taxes from 2010 to 2024.
The auditor received at least 13 trips to Florida, where he was given up to $5,000 per day for private dances at RCI clubs, along with hotel and restaurant expenses. RCI controller Timothy Winata allegedly delivered bribes in person during trips to Manhattan, coordinating the scheme with CEO Eric Langan, CFO Bradley Chhay, Director of Operations Ahmed Anakar, and Regional Manager Shaun Kevlin.
The indictment claims executives falsified club records to conceal the payments as “promotional” expenses. RCI used an in-house currency, “Dance Dollars,” and failed to remit sales taxes on their sale. In return for bribes, the auditor allegedly agreed to settle audits for substantially less than the taxes owed, saving RCI millions.
“RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” James said. Acting Commissioner Amanda Hiller of the Department of Taxation and Finance praised the collaboration with the Attorney General’s Office.
The defendants face prison terms ranging from five to 25 years if convicted. Authorities stressed the charges are allegations and the individuals are presumed innocent until proven guilty in court.
The indicted executives are Anakar, Chhay, Kevlin, Langan, and Winata. A sixth individual has also been indicted but has not yet been arraigned.
RCI and its three Manhattan subsidiaries are named as corporate defendants. The case was investigated by the Attorney General’s Office Major Investigations Unit and the Department of Taxation and Finance’s Internal Affairs team.
