New York Attorney General Letitia James announced criminal charges against top executives of RCI Hospitality Holdings, Inc., alleging they orchestrated a years-long bribery and tax fraud scheme to avoid paying more than $8 million in taxes.
According to the Attorney General’s office, the executives bribed a former New York tax auditor with cash payments, meals at restaurants, and trips to their strip clubs. In exchange, the auditor allegedly looked the other way, allowing the company to evade millions in tax obligations.
RCI Hospitality Holdings, Inc. operates dozens of strip clubs nationwide, including three in Manhattan. Investigators say the scheme stretched over a decade and involved dozens of illegal acts designed to defraud the state.
Attorney General James Condemns the Scheme
In a statement, Attorney General James explained that the case highlights the serious impact of corporate corruption on ordinary New Yorkers:
“When corporations and corrupt officials conspire to line their own pockets, they rob our state of the funds we need for health care, housing, education, and essential services. Corruption and tax fraud have no place in New York.”
James added that her office will continue to pursue accountability for executives and businesses that attempt to evade the law, regardless of their wealth or connections.
Protecting Public Trust
Officials said the fraudulent conduct not only deprived New York of vital resources but also undermined the public’s trust in state institutions.
The charges send a strong message to businesses attempting to exploit regulatory loopholes: New York will not tolerate tax fraud or bribery.
The executives now face dozens of criminal charges, though the Attorney General’s office has not yet released the full indictment.
