Detroit Strip Clubs: Take it off the top: Metro Detroit strip club owner accused of $539000 tax fraud

April 10, 2010 at 10:00 am | In Detroit strip clubs | No Comments

Take it off the top: Metro Detroit strip club owner accused of $539,000 tax fraud
April 10, 2010, 6:47AM
Federal agents contend the owner of two Detroit-area strip clubs was taking money off the top: Nicholas Faranso, the owner of BT’s Executive Club in Dearborn and Tycoon’s Gentleman’s Entertainment in Detroit, is accused of using a computer program to skim roughly $1,000 in cash a day from his businesses.
The Detroit News and Free Press report Faranso is charged with conspiring to defraud the IRS and three counts of filing a false tax return. According to an indictment unsealed Friday in federal court, Faranso under-reported corporate receipts by $539,384 and his personal income  by $574,939 in 2003.
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A vocal opponent of efforts in Detroit to increase regulation of strip clubs, Faranso in 2004 told the Metro Times, “”The City of Detroit is telling us dancers can’t mingle with customers. That’s unconstitutional. How can you tell me a dancer can’t talk to a customer?” That, just one year after he allegedly began ripping off his business.

See the full article from “MLive.com”

Detroit Strip Clubs: Strip clubs owner charged with tax fraud

April 10, 2010 at 4:13 am | In Detroit strip clubs | No Comments

Last Updated: April 10. 2010 1:00AM
Strip clubs owner charged with tax fraud
Proprietor of Tycoon’s, BT’s Lounge accused of skimming cash from businesses to cheat IRS
Paul Egan / The Detroit News
Detroit — The owner of two Detroit-area strip clubs appeared in federal court Friday, charged with skimming cash from his businesses to cheat the Internal Revenue Service.
Nicholas J. Faranso, 51, of Farmington Hills owns Tycoon’s on Eight Mile in Detroit and BT’s Lounge in Dearborn, according to a grand jury indictment.
He is charged with conspiracy to defraud the United States and filing false tax returns. Also charged with conspiracy is Theodore R. Kramer, a computer dealer accused of supplying Faranso with a computer program that would under-report cash receipts.
Faranso used the system to skim about $1,000 in cash a day from his businesses, which he used for personal expenses, the indictment alleges.

See the full article from “The Detroit News”

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