Houston, Texas, December 2, 2025
Executives from RCI Hospitality Holdings Inc. have resigned following a 79-count criminal indictment in New York. The charges, including conspiracy, bribery, and criminal tax fraud, allege the company and its executives engaged in a scheme to evade over $8 million in sales taxes by bribing a tax auditor. Interim leaders have been appointed as authorities continue to investigate the matter, raising significant concerns about corporate governance within the hospitality sector.
Houston, Texas – Executives from RCI Hospitality Holdings Inc., the parent company of Bombshells Restaurant & Bar and Rick’s Cabaret, have resigned following a criminal indictment in New York. The indictment alleges that between 2010 and 2024, the company and its executives engaged in a scheme to avoid paying over $8 million in sales taxes by bribing a New York state tax auditor.
The New York Attorney General’s Office announced a 79-count indictment against RCI Hospitality Holdings Inc., CEO Eric Langan, CFO Bradley Chhay, and three other executives. The charges include conspiracy, bribery, and criminal tax fraud. Investigators claim that the executives provided the auditor with at least 13 complimentary multi-day trips to Florida, covering hotels, restaurants, and up to $5,000 per day for private dances at RCI-owned strip clubs, including Tootsie’s Cabaret in Miami.
In response to the indictment, Langan and Chhay have stepped down from their positions as president and CEO, and CFO, respectively. They will remain employed by the company in advisory roles. Travis Reese, the company’s executive vice president since 1999, has been appointed as interim president and CEO, while Albert Molina, director of financial reporting since 2016, will serve as interim CFO.
RCI Hospitality Holdings Inc., founded in 1983, operates 69 clubs in 13 states and reported nearly $300 million in revenue in fiscal 2024. The company owns several nightclubs, sports bars, and strip clubs nationwide, including Rick’s Cabaret, Chicas Locas, and Club Onyx.
The indictment has raised concerns about corporate governance and compliance within the hospitality industry. Authorities continue to investigate the case, and further legal actions may follow.
Frequently Asked Questions (FAQ)
What are the charges against RCI Hospitality Holdings Inc. and its executives?
The company and its executives face a 79-count indictment, including charges of conspiracy, bribery, and criminal tax fraud. They are accused of bribing a New York state tax auditor to avoid paying over $8 million in sales taxes between 2010 and 2024.
Who are the executives involved in the indictment?
The indicted executives include CEO Eric Langan, CFO Bradley Chhay, and three other individuals.
What actions have been taken by RCI Hospitality Holdings Inc. in response to the indictment?
In response to the indictment, Langan and Chhay have resigned from their positions as president and CEO, and CFO, respectively. They will remain employed by the company in advisory roles. Travis Reese and Albert Molina have been appointed as interim president and CEO, and interim CFO, respectively.
What is the background of RCI Hospitality Holdings Inc.?
Founded in 1983, RCI Hospitality Holdings Inc. operates 69 clubs in 13 states and reported nearly $300 million in revenue in fiscal 2024. The company owns several nightclubs, sports bars, and strip clubs nationwide, including Rick’s Cabaret, Chicas Locas, and Club Onyx.
What are the potential legal consequences for the company and its executives?
The indictment includes multiple charges, and if convicted, the executives could face significant prison sentences. The company may also face substantial fines and other legal repercussions.
How has the public reacted to the indictment?
The indictment has raised concerns about corporate governance and compliance within the hospitality industry. The public is closely monitoring the case, and further legal actions may follow.
Key Features of the Indictment
| Feature | Details |
|---|---|
| Charges | Conspiracy, bribery, and criminal tax fraud |
| Amount Allegedly Avoided | Over $8 million in sales taxes |
| Time Period of Alleged Scheme | 2010 to 2024 |
| Number of Executives Indicted | Five |
| Number of Complimentary Trips Provided | At least 13 |
| Location of Strip Clubs Involved | Miami, Florida |
| Interim President and CEO | Travis Reese |
| Interim CFO | Albert Molina |
| Company’s Revenue in Fiscal 2024 | Nearly $300 million |
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