Strip Club Owner Pleads Guilty To Faking Books
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Strip Club Nation
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.
Read more: Strip club owner pleads guilty to faking books | freep.com | Detroit Free Press http://www.freep.com/article/20110113/NE…
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.
Read more: Strip club owner pleads guilty to faking books | freep.com | Detroit Free Press http://www.freep.com/article/20110113/NE…
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