A 79-count grand jury indictment unsealed Tuesday charges Houston-based RCI Hospitality Holdings, five of its executives and three Manhattan clubs with conspiracy, bribery, tax fraud and other crimes for allegedly bribing a New York state tax auditor to reduce the company’s tax liabilities by more than $8 million.
New York Attorney General Letitia James said the alleged scheme ran from 2010 to 2024 and involved providing the auditor with complimentary multiday trips, lavish spending on private dances and other benefits in exchange for favorable treatment during at least six tax audits of RCI’s New York City operations.
Prosecutors said RCI, which is publicly traded on the Nasdaq and owns more than 60 clubs, sports bars and restaurants nationwide, gave the auditor at least 13 complimentary trips to Florida and provided up to $5,000 per day to spend on private dances at its clubs, including Tootsie’s Cabaret in Miami. The company also allegedly paid the auditor’s hotel and restaurant expenses. In Manhattan, prosecutors contend an RCI controller, Timothy Winata, traveled from Texas to deliver bribes at Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret and Sports Bar.
The indictment alleges the company failed to pay over $8 million in sales taxes on the sale of “dance dollars,” which customers purchase and redeem for private dances. Prosecutors say the auditor settled tax audits for RCI’s Manhattan clubs for substantially less in back taxes, penalties and interest than were owed, saving the company millions of dollars.
Among those named in the indictment are RCI Chief Executive Officer, President and Board Chairman Eric Langan of Bellaire, Texas, and Winata of Houston. The attorney general’s office did not publicly name the state auditor; the indictment redacts the auditor’s name and identifies the individual as an employee of the New York State Department of Taxation and Finance. A sixth person was indicted but had not been arrested as of the unsealing, and the attorney general’s office declined to say whether that person was the auditor.
"RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” James said in a statement, calling the charges part of ongoing efforts to fight corruption and ensure all entities pay their fair share.
RCI’s lawyer in New York, Daniel Horwitz, disputed the allegations and said the defendants will fight the charges in court. "We are clearly disappointed with the New York Attorney General’s decision to move forward with an indictment and look forward to addressing the allegations," Horwitz said. He added that RCI’s policy is to pay "all legitimate and non-contested taxes" and noted that the three Manhattan clubs named in the indictment remain open. Horwitz also reminded the public that the indictments contain only allegations and that the defendants are presumed innocent until proven guilty.
The indictment spans alleged conduct over roughly 14 years and charges the company, corporate leaders and the Manhattan clubs with multiple counts tied to bribery and tax evasion. Authorities say the alleged payments and benefits were intended to influence the outcomes of at least six audits of RCI’s New York operations.
The case will proceed through the criminal justice system. The attorney general’s office brought the charges; further procedural dates and potential penalties were not disclosed in the unsealing notice. The indictment adds to scrutiny of businesses’ interactions with government auditors and raises questions about oversight of tax audit processes within state agencies.