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Strip club owner gets 20 months for automated teller tax fraud

August 21, 2009

When you have a business that generates a lot of actual green dollar bills, it can be tempting to not tell the IRS about all of them. The problem is, it's difficult to convert large quantities of greenbacks into convenient spendable form without the IRS noticing.

The owner of the King of Diamonds strip club in Inver Grove Heights, Minnesota, thought he had solved the problem when he stocked the ATM in his strip club with his club cash receipts, diverting amounts from another account earmarked for the ATM for his own use. Somehow the IRS caught on anyway, and yesterday the owner, Larry Kladek, got 20 months in federal prison on tax charges.

Prior coverage: Taking it off (the tax return) at Minnesota strip club

Tags: tax crime.

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» Moving Your Cash Receipts to an ATM Won't Strip Away the Income from Taxable Talk
Unless Congress exempts income, it's taxable. Cash income is just as taxable as checks or credit cards. As I reported last December, one enterprising Minnesota strip club owner didn't th... [Read More]