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, for his involvement in a tax fraud and bribery scheme connected to RCI Hospitality Holdings, Inc. (RCI). The company operates strip clubs across the United States.
According to the Office of the Attorney General (OAG), executives and employees from RCI bribed Plunkett with complimentary trips and dances at their clubs to avoid paying more than $8 million in sales taxes owed to New York City and the state between 2010 and 2024. Plunkett was arraigned in New York County Supreme Court on charges including Conspiracy in the Fourth Degree, Bribe Receiving in the Second Degree, Criminal Tax Fraud in several degrees, and Falsifying Business Records. Five RCI 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, commented: “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 multiple bribes to Plunkett during sales tax audits over more than ten years. Plunkett received at least 13 multi-day trips to Florida where he was given up to $5,000 per day for private dances at Tootsie’s Cabaret in Miami. RCI also paid for his hotels and meals during these trips. Since 2010, Timothy Winata—RCI’s controller—traveled from Texas to Manhattan at least ten times to provide illegal bribes at three Manhattan clubs: Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar.
The scheme was directed by Eric Langan (RCI president/CEO), Bradley Chhay (CFO), Ahmed Anakar (Director of Operations), and Shaun Kevlin (Regional Manager/Assistant Director of Nightclub Operations). These individuals also falsified business records by recording cash payments used as bribes as “promotional” expenses.
The five indicted RCI employees were arraigned earlier this month. The indictment against Plunkett was unsealed today. All defendants are presumed innocent until proven guilty.
If convicted on the top charge of Criminal Tax Fraud in the First Degree, Plunkett could face a sentence ranging from eight years and four months up to 25 years in prison.
The investigation involved Senior Detective Brian Metz from the Major Investigations Unit; additional support came from Detective John Collins of Special Operations Unit. Prosecution is being handled by Assistant Attorneys General Matthew Luongo and Gregory Morril under Public Integrity Bureau Chief Gerard Murphy.
Both investigative units fall under the Division for Criminal Justice led by Chief Deputy Attorney General José Maldonado.
