tuscl

Detroit strip club owner faces tax charges

samsung1
Ohio
The owner of two Detroit-area strip clubs has been charged with cheating on his federal income taxes.

The indictment, unsealed Friday, said Nicholas Faranso, 51 -- who owns BT's Executive Club in Dearborn and Tycoon's Gentlemen's Entertainment in Detroit -- said, among other things, that he underreported corporate receipts by $539,384 and his personal income by $574,939 for calendar year 2003.

He is accused of conspiring to defraud the IRS and three counts of filing a false tax return. The conspiracy count, the most serious, carries a maximum penalty of five years in prison and a $250,000 fine.

"I'll have my day in court and will prove my innocence," Faranso said, adding that he relied on others to handle the day-to-day business operations.

http://www.freep.com/article/20100410/NE…

7 comments

  • deogol
    •
    14 years ago
    Wouldn't be the first time the feds ran a strip club. There is a special task force set up in the IRS to go after adult businesses these days. They are looking under every rock they can to fund this monstrosity we have created.
  • vincemichaels
    •
    14 years ago
    got to love our friends, the Feds
  • CTQWERTY
    •
    14 years ago
    And to think one time when I was in Tycoon's last summer I was told the owner was just a couple of tables away eating lunch.
  • vincemichaels
    •
    14 years ago
    yeah, Nick was around a lot, CT, too bad about being nailed by our friends.
  • CTQWERTY
    •
    14 years ago
    Vince, I should've walked over and suggested he make sure he was paying his taxes... Nice place. I got one heck-of-a-offer there one time.
  • vincemichaels
    •
    14 years ago
    I've had good and bad times there, hopefully the club keeps improving after going downhill.
  • SuperDude
    •
    14 years ago
    Just rumor, but Nick was not highly regarded as a club owner. Dancers and employees have complainted to me over the years about his hard-ass, know-it-all attitude and his refusal to listen to any suggestions about how to improve things. We'll just have to see how this plays out. I wonder if this hit is a warning to other owners that the IRS will help the City of Detroit drive the clubs out of business.
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