HOUSTON, Texas (KTRK) — Executives at the Houston-based company behind Bombshells sports bar are being indicted for a multi-million dollar tax fraud scheme out of New York.
Investigators in New York say those executives used some of their strip clubs out of state to bribe a state auditor so they could get out of paying more than $8 million in sales tax.
According to a 66-page indictment from the attorney general’s office in New York, five top executives from RCI Hospitality Holdings, including CEO Eric Langan, were part of a multi-million dollar bribery scheme that spanned from 2010 to 2024.
Investigators say altogether they’re facing 79 charges ranging from conspiracy, bribery, to criminal tax fraud.
The company’s website says they operate adult night clubs and sports bars around the country including Bombshells and Club Onyx in the Houston area. Those two businesses were not part of the indictment.
Court filings allege the executives bribed the New York State Auditor with 13 free trips to their properties in Florida and provided the auditor with “complimentary hotel stays, restaurant meals, and up to several thousand dollars’ worth of private dances per day at RCI-owned strip clubs.”
Court documents go on to list multiple text exchanges between the auditor and one of the executives about the Florida trip.
One of them is from February 2022, where the auditor says in part, “This was the best trip I had in Florida. I hope we can have another trip before the summer.”
Investigators also say the auditor was also bribed with trips to three of the company’s Manhattan Clubs.
ABC13 reached out to RCI Hospitality Holdings for comment about the indictments and attorneys representing the company provided a statement denying the allegations.
“We are clearly disappointed with the New York Attorney General’s decision to move forward with an indictment and look forward to addressing the allegations. We remind everybody that these indictments contain only allegations, which we believe are baseless. RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.”
According to the New York Attorney General’s office, the penalty for first-degree criminal tax fraud carries a sentence of eight to 25 years in prison. The penalty for bribery in the second degree can range from five to 15 years in prison.
No one is facing charges in Texas.
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