New York Attorney General Letitia James holds a press conference following a ruling against former U.S. President Donald Trump ordering him to pay $354.9 million and barring him from doing business in New York State for three years, in the Manhattan borough of New York City on Feb. 16, 2024.
David Dee Delgado | Reuters
Five top executives of the strip club operator RCI Hospitality Holdings have been indicted in connection with a multi-million-dollar criminal tax fraud and bribery scheme, New York Attorney General Letitia James announced Tuesday.
The scheme included RCI executives allegedly bribing a New York state Department of Taxation and Finance auditor with 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,” James’ office said.
The alleged bribes helped RCI avoid paying more than $8 million in New York City and state taxes from 2010 through 2024, according to the AG’s office.
RCI shares dropped nearly 17% in late afternoon trading after the indictments were announced.
“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,” she said.
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