NY AG indicts RCI Hospitality executives over alleged tax fraud, bribery scheme

New York Attorney General Letitia James announced the indictments of top executives of RCI Hospitality (RICK) Holdings, a company that owns and operates strip clubs throughout the country, for their roles in a major, multimillion dollar criminal tax fraud and bribery scheme. An investigation by the Office of the Attorney General revealed that RCI executives bribed an auditor with the New York Department of Taxation and Finance to avoid paying over $8M in sales taxes to New York City and the state from 2010 to 2024. A 79-count indictment unsealed today charges RCI, five of its executives, and three RCI-owned strip clubs in Manhattan with conspiracy, bribery, and criminal tax fraud, among other crimes. “RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” said Attorney General James. “I will always take action to fight corruption and ensure everyone pays their fair share.” The OAG’s investigation revealed that RCI and its top executives bribed a former DTF auditor and supervisor, in exchange for favorable treatment during at least six different sales tax audits spanning over a decade. The auditor received at least 13 complimentary multi-day trips to Florida where he was given up to $5,000 per day for private dances at RCI-owned strip clubs, including Tootsie’s Cabaret in Miami. RCI executives paid for the auditor’s hotels and restaurant visits during these trips as well. Additionally, on at least 10 occasions since 2010, Timothy Winata, RCI’s controller and accountant, traveled to Manhattan from Texas to provide the auditor with illegal bribes at RCI’s three Manhattan clubs, Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar. Winata was responsible for directly providing the bribes to the auditor and accompanied him on trips to RCI clubs. After one such trip in February 2022, the auditor texted Winata, “This was the best trip I had in Florida. The girls were very beautiful and nice…I hope we can have another trip before the summer.”