Attorney General James Charges Former New York Tax Auditor for Role in Strip Club Company’s Tax Fraud and Bribery Scheme

September 30, 2025

NEW YORK - New York Attorney General Letitia James today announced the indictment of Alton Plunkett, a former auditor with the New York Department of Taxation and Finance (DTF), for his role in a years-long tax fraud and bribery scheme committed by top executives of RCI Hospitality Holdings, Inc. (RCI). An investigation by the Office of the Attorney General (OAG) revealed that executives and other employees from RCI, which owns and operates strip clubs throughout the country, bribed Plunkett with complimentary trips and dances at their strip clubs in order to avoid paying over $8 million in sales taxes to New York City and the state from 2010 to 2024. Plunkett was arraigned today in New York County Supreme Court and has been charged with 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. RCI and five of its employees were charged on September 16 for their roles in the scheme.

"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."

"Tax Department Internal Affairs investigators worked closely with the Attorney General's Office on this case and will continue to do so at trial," said Amanda Hiller, Acting Commissioner and General Counsel of the State Department of Taxation and Finance. "This former Tax employee, if convicted, faces severe consequences, including a possible prison term and the loss of pension benefits."

The OAG's investigation revealed that RCI, through its top executives, bribed Plunkett in exchange for favorable treatment during several different sales tax audits spanning over a decade. Plunkett received at least 13 complimentary multi-day trips to Florida where he was given up to $5,000 per day for private dances at RCI-owned strip clubs, including Tootsie's Cabaret in Miami. RCI executives paid for Plunkett's hotels and restaurant visits during these trips as well. Additionally, on at least 10 occasions since 2010, Timothy Winata, RCI's controller and accountant, traveled to Manhattan from Texas to provide Plunkett with illegal bribes at RCI's three Manhattan clubs, Rick's Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar.

The trips and bribes were authorized, directed, and overseen by Eric Langan, RCI's president and Chief Executive Officer, Bradley Chhay, RCI's Chief Financial Officer, Ahmed Anakar, RCI's Director of Operations, and Shaun Kevlin, a Regional Manager for RCI's New York City strip clubs and later RCI's Assistant Director of Nightclub Operations. They also falsified the business records of RCI strip clubs to conceal their crimes and recorded the cash payments used to bribe Plunkett as "promotional" expenses for the clubs.

The five indicted RCI employees were arraigned on September 16. The indictment was unsealed today as to the charges against Plunkett. The charges in the indictment are merely allegations and all the defendants are presumed innocent unless and until proven guilty in a court of law.

If convicted on the top count of Criminal Tax Fraud in the First Degree, Plunkett faces a maximum sentence of eight and one third to 25 years in prison.

The OAG investigation was conducted by Senior Detective Brian Metz of the Major Investigations Unit under the supervision of Deputy Chief Juanita Bright, Assistant Chief Samuel Scotellaro, and Detective Supervisors Anna Ospanova and Walter Lynch. Additional assistance was provided by Detective John Collins of the Special Operations Unit under the supervision of Deputy Chief Sean Donovan. The Investigations Bureau is led by Chief Oliver Pu-Folkes.

Assistant Attorneys General Matthew Luongo and Gregory Morril and Senior Advisor and Counsel Gary Fishman are prosecuting this case under the supervision of Public Integrity Bureau Chief Gerard Murphy and Deputy Bureau Chief Kiran Heer, with assistance provided by Legal Support Analyst Samantha Shaughnessy and former Legal Support Analyst Hannah Mueller. Both the Investigations Bureau and the Public Integrity Bureau are part of the Division for Criminal Justice. The Division for Criminal Justice is led by Chief Deputy Attorney General José Maldonado and overseen by First Deputy Attorney General Jennifer Levy.