RCI Hospitality strip club execs bribed tax auditor with comped dances: NY AG

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New York Attorney General Letitia James holds a property league pursuing a ruling against erstwhile U.S. President Donald Trump ordering him to wage $354.9 cardinal and barring him from doing concern successful New York State for 3 years, successful the Manhattan borough of New York City connected Feb. 16, 2024.

David Dee Delgado | Reuters

Five apical executives of the portion nine relation RCI Hospitality Holdings person been indicted successful transportation with a multi-million-dollar transgression taxation fraud and bribery scheme, New York Attorney General Letitia James announced Tuesday.

The strategy included RCI executives allegedly bribing a New York authorities Department of Taxation and Finance auditor with 13 complimentary multi-day trips to Florida, wherever helium was fixed up to $5,000 per time for "private dances astatine RCI-owned portion clubs, including Tootsie's Cabaret successful Miami," James' bureau said.

The alleged bribes helped RCI debar paying much than $8 cardinal successful New York City and authorities taxes from 2010 done 2024, according to the AG's office.

RCI shares dropped astir 17% successful precocious day trading aft the indictments were announced.

"RCI's executives shamelessly utilized their portion clubs to bribe their mode retired of paying millions of dollars successful taxes," James said successful a statement.

"I volition ever instrumentality enactment to combat corruption and guarantee everyone pays their just share," she said.

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