New York Attorney General Letitia James has announced the indictment of Alton Plunkett, a former auditor with the New York Department of Taxation and Finance. Plunkett is accused of participating in a tax fraud and bribery scheme involving executives from RCI Hospitality Holdings, Inc., a company that operates strip clubs across the United States.
According to the Office of the Attorney General (OAG), RCI executives allegedly bribed Plunkett with complimentary trips and private dances at their strip clubs to avoid paying more than $8 million in sales taxes to New York City and the state between 2010 and 2024. The charges against Plunkett include Conspiracy in the Fourth Degree, Bribe Receiving in the Second Degree, Criminal Tax Fraud in the First, Second, and Third Degrees, and Falsifying Business Records in the First Degree. He was arraigned today in New York County Supreme Court. RCI and five employees were previously charged on September 16 for their roles.
“Alton Plunkett took numerous bribes to help RCI and its executives cheat New Yorkers and avoid paying their fair share in taxes,” said Attorney General James. “We have zero tolerance for public officials using their office for personal gain, and we will ensure all those involved in this bribery scheme are held accountable.”
Amanda Hiller, Acting Commissioner and General Counsel of the State Department of Taxation and Finance, stated: “Tax Department Internal Affairs investigators worked closely with the Attorney General’s Office on this case and will continue to do so at trial. This former Tax employee, if convicted, faces severe consequences, including a possible prison term.”
The OAG investigation found that RCI’s top executives authorized at least 13 multi-day trips for Plunkett to Florida where he received up to $5,000 per day for private dances at Tootsie’s Cabaret in Miami. These trips included hotel accommodations and restaurant visits paid by RCI executives. Additionally, since 2010, Timothy Winata—RCI’s controller—traveled from Texas to Manhattan at least ten times to provide cash bribes to Plunkett at three Manhattan clubs: Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar.
RCI President Eric Langan; Chief Financial Officer Bradley Chhay; Director of Operations Ahmed Anakar; Regional Manager Shaun Kevlin; along with other employees are alleged to have overseen these activities. The indictment claims they falsified business records by recording cash payments as “promotional” expenses.
The five indicted RCI employees were arraigned earlier this month. The indictment was unsealed today regarding charges against Plunkett. All defendants are presumed innocent until proven guilty.
If convicted on Criminal Tax Fraud in the First Degree—the most serious charge—Plunkett could face eight-and-one-third to 25 years in prison.
The OAG investigation involved several detectives from its Major Investigations Unit under supervisory staff as well as support from both Investigations Bureau Chief Oliver Pu-Folkes and Public Integrity Bureau leadership.
Prosecution is being handled by Assistant Attorneys General Matthew Luongo and Gregory Morril along with Senior Advisor Gary Fishman under Public Integrity Bureau Chief Gerard Murphy.
