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A man who owned a strip club in Salina has pleaded guilty to filing false tax returns and underpaying his federal income taxes by more than $150,000
U.S. Attorney Barry Grissom released a statement saying Kirk Roberts, 49, pleaded guilty to three counts of filing false income tax returns for tax years 2006, 2007 and 2008. In his plea, he admitted that while he was the owner of Wild, Wild West, Inc., a strip club in Salina, he failed to report cash receipts totaling $537,942. As a result, he underpaid his federal income taxes by $153,510.
The club collected cover charges from its patrons. It also collected between $25 and $50 per night in cash for house fees paid by dancers so they could dance on stage, as well as $35 per half hour in cash paid by dancers for using private rooms or “champagne rooms.”
The cash from the fees was not recorded on the business’ cash register. Rather than depositing the cash into the business’ bank account, Roberts deposited the money into a personal account.
Sentencing is set for April 22.