AG James Busts Strip Club Empire's $8M Tax Fraud Scheme

Paul Riverbank, 9/17/2025Strip club empire executives face charges in $8M tax fraud involving bribes and perks.

Strip Clubs, Bribes, and Tax Evasion: A Tale of Corporate Misconduct

The world of adult entertainment rarely intersects with tax law in the public eye. But when it does, the results can be spectacular. Just ask RCI Hospitality Holdings, whose executives now face criminal charges in what prosecutors describe as an audacious attempt to dodge millions in New York state taxes.

I've covered corporate scandals for two decades, but this one stands out. The indictment reads less like a financial crime and more like a scene from "The Wolf of Wall Street" – complete with strip club perks, Miami junkets, and brazen text messages about bribes.

Here's what we know: New York Attorney General Letitia James has hit RCI and five executives with 79 criminal counts. The company, which runs well-known venues like Rick's Cabaret, allegedly orchestrated an $8 million tax dodge over 14 years. Their method? Prosecutors say they plied a state auditor with private dances, luxury trips, and other perks.

The details are almost comical. Picture RCI's president Eric Langan casually texting about "dance dollars" while discussing millions in unpaid taxes. Or consider the company accountant, Tim Winata, repeatedly flying from Texas to Manhattan just to wine and dine their cooperative auditor.

But there's nothing funny about the consequences. RCI's stock took a 15.9% nosedive after the news broke. More seriously, Langan and Winata could face up to 25 years behind bars on first-degree criminal tax fraud charges.

The company's defense team, led by Daniel J. Horwitz, maintains their clients' innocence. "These indictments contain only allegations," Horwitz reminded reporters yesterday. It's worth noting that in cases like these, the government's initial charges often look more dramatic than what ultimately sticks.

What fascinates me most is the casual attitude revealed in the communications. Take this gem from the auditor to Winata: "That's the way people do business in this country... Everyone is happy." This kind of brazenness suggests either remarkable naiveté or a deeply ingrained culture of corruption.

Meanwhile, RCI's Manhattan clubs keep their doors open, their dancers perform, and their lawyers prepare for battle. The coming months will reveal whether this elaborate dance with tax authorities leads to convictions or collapses under scrutiny.

For now, it serves as a reminder that even in businesses built on fantasy, reality – and the tax man – eventually catch up.

Strip Clubs, Bribes, and Tax Evasion: A Tale of Corporate MisconductThe world of adult entertainment rarely intersects with tax law in the public eye. But when it does, the results can be spectacular. Just ask RCI Hospitality Holdings, whose executives now face criminal charges in what prosecutors describe as an audacious attempt to dodge millions in New York state taxes.I've covered corporate scandals for two decades, but this one stands out. The indictment reads less like a financial crime and more like a scene from "The Wolf of Wall Street" – complete with strip club perks, Miami junkets, and brazen text messages about bribes.Here's what we know: New York Attorney General Letitia James has hit RCI and five executives with 79 criminal counts. The company, which runs well-known venues like Rick's Cabaret, allegedly orchestrated an $8 million tax dodge over 14 years. Their method? Prosecutors say they plied a state auditor with private dances, luxury trips, and other perks.The details are almost comical. Picture RCI's president Eric Langan casually texting about "dance dollars" while discussing millions in unpaid taxes. Or consider the company accountant, Tim Winata, repeatedly flying from Texas to Manhattan just to wine and dine their cooperative auditor.But there's nothing funny about the consequences. RCI's stock took a 15.9% nosedive after the news broke. More seriously, Langan and Winata could face up to 25 years behind bars on first-degree criminal tax fraud charges.The company's defense team, led by Daniel J. Horwitz, maintains their clients' innocence. "These indictments contain only allegations," Horwitz reminded reporters yesterday. It's worth noting that in cases like these, the government's initial charges often look more dramatic than what ultimately sticks.What fascinates me most is the casual attitude revealed in the communications. Take this gem from the auditor to Winata: "That's the way people do business in this country... Everyone is happy." This kind of brazenness suggests either remarkable naiveté or a deeply ingrained culture of corruption.Meanwhile, RCI's Manhattan clubs keep their doors open, their dancers perform, and their lawyers prepare for battle. The coming months will reveal whether this elaborate dance with tax authorities leads to convictions or collapses under scrutiny.For now, it serves as a reminder that even in businesses built on fantasy, reality – and the tax man – eventually catch up.