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.
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last commentIs it greed? Or simply that Detroit cannot support that many clubs?
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So, is the government seizing the clubs?
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deogol, in Nick's case, I'd say it is definitely greed. I haven't been to Tycoons in a long time. I stopped in once or twice after he completely remodeled it after running it into the ground. I wouldn't be surprised if he was skimming the profits all along. Detroit, despite the bad economy there continues to be a good market for strip clubs. The good ones succeed by providing the customer experience a lot of guys look for, the not so good ones, limp along and get bought eventually.
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