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Another One Bites the Dust

SuperDude

Detroit, Michigan

To hear the dancers tell, Nick was the least popular SC club owner in Detroit. Don't know him personally, but he sure arouses a lot of negative comment.

Jan. 13, 2011
By Tresa Baldas
Free Press Staff Writer

A Detroit-area strip club owner pleaded guilty
today to doctoring his club sales with a
specialized computer program so that he could
cheat on his taxes, the Justice Department and
Internal Revenue Service announced.

Nicholas J. Faranso, of Farmington Hills, faces up
to five years in prison after pleading guilty
before U.S. District Court Judge John Corbett O'
Meara in federal court in Detroit.
He pleaded guilty to one count of conspiracy to
defraud the United States. He will be sentenced
July 14.
According to court documents, Faranso owned
two strip clubs: BT's in Dearborn, Mich., and
Tycoon's in Detroit. Court documents reveal that
in 2001, Faranso bought a computer software
program called Journal Sales Remover from
Theodore Kramer, a self-employed computer
software salesman. The software program was
specifically designed to remove a portion of the
actual sales from the computerized point of sales
systems that both clubs used to produce guests
checks, and to track and record sales.
The program would make it appear that Faranso'
s clubs received less income than they actually
did, records show.
According to court documents, from about 2001
to about 2004, at Faranso's request, Kramer
made periodic visits to Faranso's clubs to run the
sales remover program to delete a substantial
amount of the actual sales from the club's
computer. Faranso then provided the reduced
sales figures to his accountant, records show.
As a result, Faranso falsified the clubs' tax
returns by understating their gross receipts by
more than $500,000.
Kramer pleaded guilty to one count of
conspiracy in November.