The New York Attorney General, Letitia James, announced charges against five executives of RCI Hospitality Holdings, including CEO Eric Langan, for alleged criminal tax fraud and bribery schemes. The charges detail how RCI executives reportedly provided bribes in the form of free trips to Florida, as well as payments for “private dances” at their strip clubs, to various New York State officials. This alleged bribery helped RCI avoid over $8 million in state and city taxes from 2010 to 2024.
Key figures include Timothy Winata, RCI’s controller, who facilitated bribery at three Manhattan clubs, while communications among executives indicated Langan’s direct involvement in negotiation and payment processes related to these bribes. Following the announcement, RCI’s stock dropped nearly 17%.
In response, RCI’s attorney stated that the company will vigorously contest the charges and emphasized that these allegations are unfounded. RCI claims to adhere to tax regulations and is a publicly audited company, expressing disappointment over the indictment while asserting the innocence of its officials.
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