Strip club owner admits cheating on taxes involving 'champagne rooms'
The owner of the Wild, Wild West strip club in Salina, Kan., pleaded guilty Friday to failure to report taxes on cover charges and on fees he collected from his girls for dancing on stage and for using private “champagne rooms†with patrons.
Kirk Roberts, 49, underpaid the Internal Revenue Service $153,510 over three years.
According to federal prosecutors Roberts charged patrons $3 to $5 in cash to enter the club. He also charged his dancers $25 to $50 per night in cash to dance on the stage and $35 per half-hour in cash for the use of private “champagne rooms.†But Roberts deposited the cash in his personal bank account instead of the business account.
He faces a maximum of three years in prison and a fine of $250,000 for each of three counts. Sentencing is scheduled for April 22.
| Matt Campbell, mcampbell@kcstar.com
Read more here: www.kansas.com
Comments
last commentOkay. Okay. I get it. Sheesh...
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Strip Clubs, Club owners & dancers - that's a Black Hole of tax issues.
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I'm surprised that he got caught.
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Wow someone who has a cash business didn't declare all the cash. I'm sure all of the dancers declare every dollar they take home.
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Once he put that shit in the bank or ran it through the register...
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Shocking.
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@deogol You're right. I'm surprised he was stupid enough to put it in the bank.
I know one dancer who works a part time job too because, "I have to show some income." When I told her that she can dance more instead of working the part time job and report the income from dancing to the IRS and pay taxes on it she said no.
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