A former New York Department of Taxation and Finance auditor has been caught up in a seedy tale of bribery and tax evasion, according to Attorney General Letitia James. Alton Plunkett is facing charges for his part in a scheme that enabled RCI Hospitality Holdings, Inc., a company that operates strip clubs nationwide, to skirt over $8 million in sales taxes. The allegations suggest a transactional dance of corruption, with Plunkett receiving luxury trips and cash in exchange for favorable audit treatment.
In the indictment, Attorney General James didn't mince words, saying, "Alton Plunkett took numerous bribes to help RCI and its executives cheat New Yorkers and avoid paying their fair share in taxes." The state's patience for such abuses of public office is threadbare, with James vowing to hold all involved accountable. Amanda Hiller, Acting Commissioner and General Counsel, of the State Department of Taxation and Finance, highlighted the collaborative effort with the Attorney General's Office on this case, which could land Plunkett a severe prison sentence if convicted.
The scheme, which ran from 2010 to 2024, involved executives from RCI, including its president and CEO, CFO, and other top managers, who allegedly directed and oversaw the bribes. Plunkett reportedly enjoyed at least 13 trips to Florida, where up to $5,000 per day awaited him in private dances at RCI's own clubs. Richest indulgences were not just confined to fine dining and luxury stays; they were choreographed to swivel around the law, purportedly authorized and concealed by RCI's overshadowed ledgers as "promotional" costs.
This scandal emerged alongside the accusations against five RCI employees, already arraigned on September 16. Plunkett is charged with a troupe of felonies including Conspiracy in the Fourth Degree, Bribe Receiving in the Second Degree, and Criminal Tax Fraud in varying degrees. In the elaborate financial ballet of deceit, records were allegedly pirouetted to hide the truth, with the OAG's investigation spearheaded by Senior Detective Brian Metz and a team under the supervision of Deputy Chief Oliver Pu-Folkes. "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," as per the Attorney General's Office.
The legal number facing Plunkett could crescendo to a 25-year prison stay if convicted on the top count of Criminal Tax Fraud in the First Degree.
