Strip club executives charged with bribing NY official to avoid paying $8M in taxes

A company that owns strip clubs around the country and several of its executives have been charged with bribing a government official with free trips to some of the clubs and thousands of dollars in spending money to avoid paying more than $8 million in sales taxes to New York City and the state of New York, prosecutors said Tuesday.

New York Attorney General Letitia James said the alleged scheme by Houston-based RCI Hospitality Holdings and its corporate leaders ran from 2010 to 2024 and involved bribing a New York state tax auditor, in exchange for receiving favorable treatment during at least six tax audits that were performed over a decade.

RCI Hospitality, publicly traded on the Nasdaq composite, owns and operates more than 60 clubs and sports bars and restaurants across the county, including Rick’s Cabaret establishments located in more than a dozen cities including New York City, according to the company’s website. It also owns two other businesses in Manhattan.

A 79-count grand jury indictment that was unsealed Tuesday charges RCI, five of its executives and the three clubs in Manhattan with conspiracy, bribery, tax fraud and other crimes.

“RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” James said in a statement. “I will always take action to fight corruption and ensure everyone pays their fair share.”

Daniel Horwitz, a New York lawyer for RCI, disputed the allegations and said the defendants will fight the charges in court.

“We are clearly disappointed with the New York Attorney General’s decision to move forward with an indictment and look forward to addressing the allegations,” Horwitz said in a statement. “We remind everybody that these indictments contain only allegations, which we believe are baseless. RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.”

He added that RCI’s policy is to pay “all legitimate and non-contested taxes” and all three Manhattan clubs remain open.

Among the RCI executives who were indicted are Eric Langan of Bellaire, Texas, chief executive officer, president and board chairman; 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.

James’ office did not name the New York state auditor. It said that a sixth person who was not publicly named was indicted but not yet arrested. James’ office declined to say whether that person was the auditor. The name of the auditor, who worked for the New York State Department of Taxation and Finance, is redacted in the indictment.

Prosecutors said RCI gave the auditor at least 13 complimentary, multiday trips to Florida and up to $5,000 per day to spend on private dances at RCI strip clubs, including Tootsie’s Cabaret in Miami. The auditor’s hotel and restaurant expenses were also paid for by RCI, authorities said.

Winata also traveled from Texas to Manhattan to give the auditor bribes at the three Manhattan clubs — Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret and Sports Bar, prosecutors said.

The indictment alleges RCI failed to pay over $8 million in sales taxes on the sale of “dance dollars,” which are purchased by customers and redeemed for private dances. The auditor, prosecutors alleged, settled tax audits of RCI’s Manhattan clubs for substantially less in back taxes, penalties and interest than were owed, saving the company millions of dollars.