Executives of RCI Hospitality Holdings, a Houston-based company that owns dozens of strip clubs across the U.S., have been indicted on charges of bribing a New York state tax auditor with luxury trips, private dances, and lavish perks to avoid paying more than $8 million in sales taxes.
According to a 79-count indictment unsealed Tuesday in Manhattan, prosecutors allege that five company executives, along with three of RCI’s New York clubs, conspired over more than a decade to provide the auditor with repeated favors in exchange for favorable treatment during tax audits.
Authorities say the auditor was treated to at least 13 all-expenses-paid trips to Florida, where he visited RCI-owned clubs such as Tootsie’s Cabaret in Miami, billed as one of the world’s largest strip clubs.
The perks allegedly included hotel stays, restaurant meals, thousands of dollars per day in private dances, and “Dance Dollars”—in-house currency at the clubs. The auditor was also given complimentary entry, food, and private dances at RCI’s New York locations, including Rick’s Cabaret NYC, Hoops Cabaret, and Vivid Cabaret.
In return, prosecutors say the auditor agreed to significantly reduce tax bills for RCI clubs and even blocked further audits. In one instance, executives discussed cutting a $200,000 tax payment down to just $70,000.
In text messages cited in the indictment, the auditor openly praised the trips, once writing in 2022 that it was “the best trip I had in Florida,” adding he enjoyed “many lap dances instead of going to the room.”
The executives charged include:
- Eric Langan, CEO, president, and board chairman of RCI
- Bradley Chhay, chief financial officer
- Ahmed “Ed” Anakar, director of operations
- Shaun Kevlin, a regional manager in New York
- Timothy Winata, RCI’s controller and accountant
Prosecutors allege Langan and others approved and oversaw the bribes, while Winata directly handled payments and accompanied the auditor on club trips.
The indictment also charges RCI itself and its three Manhattan clubs with conspiracy, bribery, tax fraud, and falsifying business records.
New York Attorney General Letitia James said the executives “shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes.”
RCI, which operates more than 60 clubs and sports-bar restaurants nationwide and is publicly traded on Nasdaq, has denied wrongdoing.
“We are clearly disappointed with the New York Attorney General’s decision,” said company attorney Daniel Horwitz. “These indictments contain only allegations, which we believe are baseless. The company and individuals involved are presumed innocent and should be allowed to have their day in court.”
Despite the charges, the three Manhattan clubs remain open.
