High-ranking officials at RCI Hospitality Holdings face accusations of tax evasion and bribery in a New York courtroom.
In a shocking turn of events, RCI Hospitality Holdings Inc., a prominent strip-club and sports-bar operator, has been indicted on tax fraud and bribery charges. The company, which also owns the military-themed breastaurant chain Bombshells Restaurant & Bar, is at the centre of a wide-ranging investigation by the New York State Attorney General Letitia James.
According to the indictment, RCI executives allegedly conspired to bribe a former auditor of the New York tax and finance authority to avoid paying over $8 million in sales tax from 2010 to 2024. Among those named in the indictment are Eric Langan, the president and CEO of RCI, Timothy Winata, the company's controller and accountant, Bradley Chhay, the CFO, Shaun Kevlin, a regional manager and later assistant director of nightclub operations, and Ahmed "Ed" Anakar, the director of operations.
The bribes, as detailed in the indictment, included at least 13 free multi-day trips to Florida and up to $5,000 per day for private dances at RCI-owned strip clubs. Five of the company's executives, including Langan, are charged for their alleged roles in this scheme.
In addition to the executive indictments, three RCI-owned strip clubs in Manhattan are also included in the charges. Moreover, a sixth person has been indicted but had not yet been arrested when the indictment was announced.
RCI's attorney, Daniel Horwitz, has denied the allegations and stated that the company will defend itself against the "overreaching charges." He reiterated that all individuals involved are presumed innocent and should be allowed to have their day in court.
Last year, RCI closed a number of underperforming Bombshells locations. The company, which owns about 60 gentlemen's clubs across the country, has not yet issued a public statement regarding the recent indictment.
If convicted on the bribery charges, Chhay and Kevlin could face a maximum sentence of five to 15 years. If convicted of the top count of criminal tax fraud in the first degree, Langan, Winata, and Anakar could face a maximum sentence of eight and one third to 25 years in prison.
This is a developing story and more details will be released as information becomes available. Stay tuned for updates.
