That’s one way to avoid paying sales taxes. Corruption isn’t new, especially in the tri-state area where this tale originates. For over 14 years, a New York City business group specializing in nightlife exclusivity allegedly devised a scheme to avoid paying sales taxes for 14 years. It’s nothing you haven’t heard of, but eventually, everyone who tries to cheat on taxes gets caught. It’s one of the things, if not the only function, that government remains on top of regarding up-to-date paperwork. You can probably get away with it for a period of time, even a long time, but eventually mistakes are made.
Sorry about that—what did this group, RCI, do to avoid paying New York sales taxes on their strip joints? They bribe the state auditor with an avalanche of lap dances and lavish vacations. In return, the auditor would give RCI glowing reports. The auditor at the center of this fiasco has not been named yet (via NY Post):
A major strip club group bribed a state auditor — including with lap dances — to avoid paying more than $8 million in New York City sales taxes over the last 14 years, prosecutors charged Tuesday.
The State Attorney General’s Office unsealed a 79-count criminal indictment against the company, RCI, and five of its executives, accusing them of engaging in a naked, tax fraud scheme.
The affair was so brazen, a top RCI accountant even allegedly made at least 10 trips from Texas to New York to treat the former auditor at the company’s Manhattan jiggle joints, Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret and Sports Bar, court papers state.
“RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” said AG Letitia James. “I will always take action to fight corruption and ensure everyone pays their fair share.”
RCI and the top execs allegedly bribed the auditor with a slew of lascivious treats starting in 2010, including at least 13 free multi-day trips to Miami “with complimentary hotel stays, restaurant meals, and up to several thousand dollars’ worth of private dances per day at RCI-owned strip clubs,” the indictment states.
Well, all good things come to an end, right? And that could also go for Ms. James, who is facing mortgage fraud allegations.
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