A former New York City auditor has been indicted for allegedly accepting bribes, including lap dances and trips to Florida, in exchange for helping strip club executives avoid over $8 million in sales taxes. Alton Plunkett, a retired auditor with the New York Department of Taxation and Finance, was charged on Tuesday with conspiracy, bribe receiving, criminal tax fraud, and falsifying business records, according to New York Attorney General Letitia James.
Plunkett is accused of taking bribes from RCI Hospitality Holdings, a publicly traded company that owns more than 60 clubs, sports bars, and restaurants across the US. Between 2010 and 2024, Plunkett conducted or supervised at least six sales tax audits of RCI-owned strip clubs in New York County. In exchange for favorable treatment, he 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 clubs, including Tootsie's Cabaret in Miami.
The indictment details text messages among RCI executives discussing the scheme. In one message from August 2014, RCI controller Timothy Winata texted director of operations Ahmed Anakar: 'Alton is coming to club tonight. I will have to ‘entertainment’ him.' The bribes were allegedly authorised by RCI’s president and CEO Eric Langan, CFO Bradley Chhay, Anakar, and regional manager Shaun Kevlin.
RCI's strip clubs used an in-house currency called 'Dance Dollars,' which customers could redeem for private dances. The clubs charged a service fee of 20 to 25 percent on top of the face value, subject to an 8.875 percent sales tax. Prosecutors allege the conspirators failed to collect and pay over $8 million in sales taxes on these sales. To conceal the scheme, executives recorded cash bribes as 'promotional' expenses.
If convicted of criminal tax fraud in the first degree, Plunkett faces a maximum sentence of 8⅓ to 25 years in prison. Five RCI executives were indicted earlier this month on related charges.
