The parent company of Rick’s Cabaret and other Manhattan strip clubs, along with five top executives, has been indicted on sweeping charges of conspiracy, bribery, and criminal tax fraud in a scheme that allegedly spanned more than a decade.

The 79-count indictment, unsealed in New York County Supreme Court, names RCI Hospitality Holdings, Inc. (NASDAQ: RICK), its subsidiaries Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret, and senior leaders including Eric Langan (CEO), Timothy Winata (controller), Ahmed “Ed” Anakar (director of operations), Bradley Chhay (CFO), and Shaun Kevlin (regional manager).

According to Attorney General Letitia James, the defendants avoided paying more than $8 million in sales taxes on the sale of in-house currency known as “Dance Dollars,” while bribing a state tax auditor with cash, trips, and private dances to reduce their liabilities.

“RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” James said. “I will always take action to fight corruption and ensure everyone pays their fair share.”

Court filings allege that from 2010 to 2024, RCI and its executives bribed a Department of Taxation and Finance auditor who oversaw repeated sales tax audits of the Manhattan clubs.

• Customers purchased Dance Dollars, redeemable for private dances, with a 20–25 percent surcharge. These transactions were taxable under New York law, but the clubs allegedly failed to collect or remit the taxes.
• To avoid detection, executives allegedly paid for at least 13 luxury trips to Florida, providing the auditor with hotels, meals, and as much as $5,000 per day in private dances.
• On at least 10 occasions, Winata traveled from Texas to New York to deliver bribes, often disguised in club records as “promotional expenses.”

Text messages cited in the indictment show executives openly discussing the bribes. In April 2018, Langan wrote to Anakar: “We need to talk about New York and dance dollars. We are going to be hit by 3M in sales taxes soon.” Later that day, when told that $1,500 more would be needed to satisfy the auditor, Langan replied: “That’s fine. Go ahead.”

The indictment includes:

• Four counts of Criminal Tax Fraud in the First Degree, the most serious tax offense, carrying up to 25 years in prison.
• Multiple counts of Criminal Tax Fraud in the Second, Third, and Fourth Degrees.
• Three counts of Bribery in the Second Degree.
• Three counts of Offering a False Instrument for Filing.
• Three counts of Conspiracy in the Fourth Degree.

If convicted on the top charges, Langan, Winata, and Anakar face up to 25 years in prison. Chhay and Kevlin could face up to 15 years.

Attorney Daniel Horowitz, representing the defendants, issued a statement rejecting the allegations.

The executives, he said, “deny the allegations and will take all necessary action to defend themselves against these overreaching charges. These indictments contain only allegations, which we believe are baseless. RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.”

Horowitz noted that RCI disclosed the investigation in earlier SEC filings and maintains “a policy of paying all legitimate and non-contested taxes.”

The indictment has already rattled markets. Shares of RCI Hospitality Holdings dropped nearly 17 percent in afternoon trading on Tuesday after the charges were announced.

Despite the criminal case, the company said its three Manhattan clubs, Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret, remain open for business.

You can follow them on X at @RicksCabaretNYC.