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Investing.com -- Shares of RCI Hospitality Holdings are trading sharply lower late on Tuesday, after New York Attorney General Letitia James announced indictments of top executives for their roles in a multimillion-dollar criminal tax fraud and bribery scheme.
The investigation alleges that RCI executives allegedly bribed an auditor with the New York Department of Taxation and Finance to avoid paying over $8 million in sales taxes to New York City and the state from 2010 to 2024.
A 79-count indictment unsealed Tuesday charges RCI, five of its executives, including CEO, and three RCI-owned strip clubs in Manhattan with conspiracy, bribery, and criminal tax fraud, among other crimes.
"RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes," said Attorney General James.
The charges in the indictment are allegations, and the defendants are presumed innocent unless proven guilty in court.