Feds Sell Former Mob-Owned Seattle Strip Clubs at Auction
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Law enforcement agencies will split well over $3 million taken in the sale of the two clubs
SEATTLE—Who says crime doesn't pay? The Department of Justice saw a nice payday last week with the auction of two Seattle adult entertainment establishments, Rick's Nightclub and Talents West, seized as part of a plea deal with the Colacurcio "organized crime enterprise," whose patriarch, the late Frank Colacurcio Sr., was indicted in 2009 on racketeering charges.
According to a June 21 press release issued by the U.S. Marshall's Service, the elder Colacurcio's son, Frank Jr., who also was indicted on racketeering and prostitution-related charges, “agreed to forfeit $1.3 million in cash and all interest in the strip clubs in September 2010. The U.S. Marshals Service, Western District of Washington, seized the two properties in August 2010. A court order to dispose of the properties was issued in April 2011, and the Marshals determined that an auction was the most feasible way to sell the properties.â€
The auction was held June 29. According to Seattlepi.com, Rick's, which is located at 11332 Lake City Way NE, Seattle, sold for $2.35 million to an unnamed bidder suspected to be the Déjà vu chain of nightclubs. Talents West, located at 8600 Lake City Way NE, Seattle, WA 98115, sold for $600,000, to an unnamed bidder thought to be unrelated to the one that purchased Rick's.
“The money raised from the Wednesday auctions will be put into the Department of Justice assets forfeiture fund and local agencies who investigated the Colacurcios will divide the revenue,†Seattlepi.com reported. “The auction company will receive about 6 percent of the final bid amount, expected to be split with other companies involved in the sales.â€
According to Paul Baxley, an assistant chief inspector with the U.S. Marshal's asset division, the sale amounts were unusually high for an auctioned property, but interest has been high since they went on the market.
"From the time we seized this property last summer we've probably received 20 to 30 calls from different individuals over this last year of interested parties," he said.
Both businesses have been closed since the feds took them over, but the prospect that one of them may remain a strip club has some in the community wondering how the government could allow such a thing to happen. But Baxley confirmed that the Justice Department is neutral on the subject, and that the priority was to reap as much money for the properties as possible. He even joked that if the new owners want to stay in the strip club business, they'll need to refurnish the place.
"The stripper poles are no longer in the building,†he said. “It's now, bring your own pole."
Of course, it's easy to joke when you've just been handed a $3 million plus payday for property that didn't belong to you in the first place.
http://business.avn.com/articles/legal/F…
SEATTLE—Who says crime doesn't pay? The Department of Justice saw a nice payday last week with the auction of two Seattle adult entertainment establishments, Rick's Nightclub and Talents West, seized as part of a plea deal with the Colacurcio "organized crime enterprise," whose patriarch, the late Frank Colacurcio Sr., was indicted in 2009 on racketeering charges.
According to a June 21 press release issued by the U.S. Marshall's Service, the elder Colacurcio's son, Frank Jr., who also was indicted on racketeering and prostitution-related charges, “agreed to forfeit $1.3 million in cash and all interest in the strip clubs in September 2010. The U.S. Marshals Service, Western District of Washington, seized the two properties in August 2010. A court order to dispose of the properties was issued in April 2011, and the Marshals determined that an auction was the most feasible way to sell the properties.â€
The auction was held June 29. According to Seattlepi.com, Rick's, which is located at 11332 Lake City Way NE, Seattle, sold for $2.35 million to an unnamed bidder suspected to be the Déjà vu chain of nightclubs. Talents West, located at 8600 Lake City Way NE, Seattle, WA 98115, sold for $600,000, to an unnamed bidder thought to be unrelated to the one that purchased Rick's.
“The money raised from the Wednesday auctions will be put into the Department of Justice assets forfeiture fund and local agencies who investigated the Colacurcios will divide the revenue,†Seattlepi.com reported. “The auction company will receive about 6 percent of the final bid amount, expected to be split with other companies involved in the sales.â€
According to Paul Baxley, an assistant chief inspector with the U.S. Marshal's asset division, the sale amounts were unusually high for an auctioned property, but interest has been high since they went on the market.
"From the time we seized this property last summer we've probably received 20 to 30 calls from different individuals over this last year of interested parties," he said.
Both businesses have been closed since the feds took them over, but the prospect that one of them may remain a strip club has some in the community wondering how the government could allow such a thing to happen. But Baxley confirmed that the Justice Department is neutral on the subject, and that the priority was to reap as much money for the properties as possible. He even joked that if the new owners want to stay in the strip club business, they'll need to refurnish the place.
"The stripper poles are no longer in the building,†he said. “It's now, bring your own pole."
Of course, it's easy to joke when you've just been handed a $3 million plus payday for property that didn't belong to you in the first place.
http://business.avn.com/articles/legal/F…
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2 comments
Some clarification is in order: Talents West was the name of the company that ran four strip clubs in the Puget Sound Region--Ricks (Seattle), Honey's (Everett), Sugar's (Shoreline), and Fox's (Parkland) which are now all closed. The property referred to as Talents West in the article was just its offices. And that was nothing special. Deja Vu was Talents West biggest rival, and now, to add insult to (Talents West) injury, the Vu got Talents West best property--Ricks.
The article above, as well as local news accounts make it sound like the feds made off like bandits themselves, with over $2 million from the sale of the auctioned property. Actually, the feds settled for only about ten percent of what they felt the Talents West empire had amassed over many years of illegal operations. Local newspaper reports described how the feds estimated Talents West illegally earned $25 million over about a five-year period, once the feds and local law enforcement began monitoring Talents West's business practices. Before the indictments were handed down, it was the feds goal to recoup the $25 million. So, you can see, they settled for a fraction of their original goals. The Talents West partners are likely still wealthy individuals. I know that one of the partners recently bought his wife a $200,000. horse!