Five executives from a strip club company indicted for tax fraud and bribing a New York tax auditor.

Five executives from RCI Hospitality Holdings Inc., a company managing a network of strip clubs, have been indicted on multiple charges, including tax fraud and bribery of a tax auditor, according to an announcement by State Attorney General Letitia James. If convicted, the defendants could face significant prison sentences ranging from eight to 25 years.

The accused executives—Ahmed “Ed” Anakar, 58, Bradley Chhay, 41, Shaun Kevlin, 45, Eric Langan, 57, and Timothy Winata, 71—are implicated in a total of 79 crimes, comprising conspiracy, bribery, and criminal tax fraud. This indictment follows an extensive investigation conducted by the Attorney General’s office.

The indictment also names three of the company’s Manhattan strip clubs: Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar, all located in Midtown. Despite the serious allegations, these establishments are reportedly continuing to operate.

RCI Hospitality’s attorney, Daniel J. Horowitz, issued a statement asserting the company’s and individuals’ commitment to contesting the allegations, characterizing them as overly broad. He emphasized that RCI Hospitality, as a publicly traded and audited entity, adheres to legitimate tax regulations, maintaining a policy of compliance with all non-contested taxes.

The charges against the executives revolve around the allegation that they engaged in bribery of a New York Department of Taxation and Finance auditor in exchange for favorable treatment regarding the clubs’ tax liabilities. From 2010 to 2024, it is alleged that the defendants sought to evade over million in sales taxes owed to New York City and the state by providing the auditor with luxury trips and various perks.

In addition, the company’s practice of utilizing an in-house currency labeled “dance dollars” for transactions reportedly formed part of the alleged fraudulent scheme, contributing to significant sales tax losses. Customers had the option to buy these “dance dollars,” which could then be exchanged for private dance services.

The Attorney General’s office claims that the executives went to great lengths to curry favor with the auditor, including financing at least 13 lavish trips to destinations such as Miami, Florida. They are accused of providing the auditor with ,000 daily for hotel accommodations, tips at restaurants, and additional expenses for private dances at another club owned by RCI.

Evidence gathered during the investigation allegedly includes communications between the auditor and the executives, revealing attempts to negotiate favorable outcomes related to a sales tax audit. The indictment also mentions a sixth individual who has been charged but was not in custody as of the latest updates.

RCI Hospitality Holdings operates a total of 55 strip clubs across the United States, highlighting the scale of the company involved in these serious legal issues. Media News Source will continue to monitor the developments of this case as further information becomes available.