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Sam Morris / File photo
Patrons step up to the bar and fill the dance floor at Pure in Caesars Palace.
Thursday, March 24, 2011 | 12:08 p.m.
Sun archives
Sun archives
A second former host who worked at Caesars Palace’s Pure nightclub has pleaded guilty to tax crimes stemming from a 2008 IRS raid at the nightclub for its tipping and cash handling policies.
Ali “Shawn” Olyaie, who worked as a VIP host at Pure, pleaded guilty before U.S. District Court Judge Kent Dawson to one count of filing a false federal individual income tax return for the 2006 tax year, the Department of Justice and IRS announced today.
Olyaie worked as a host at the club in 2005 and 2006 and received cash payments collected at the door from patrons trying to bypass the line, according to information disclosed in his hearing.
The payments were collected, pooled and generally distributed on a weekly basis to Pure managers, door personnel and VIP hosts, including Olyaie, according to the Department of Justice.
Olyaie concealed the cash payments he received by not reporting the income to the IRS on his individual income tax returns during the years he worked at the Pure, officials said.
Sentencing has been scheduled for June 29.
On Nov. 9, 2010, Richard Chu, another VIP host at the nightclub, pleaded guilty to filing a false individual income tax return for 2006 after he didn't report the tips he received at Pure. Chu is awaiting sentencing.
In February 2008, the IRS sent agents to investigate Pure Management Group and its former managing partner, Steve Davidovici, as part of a criminal investigation into the club's cash-handling policies.
This case is being investigated by the IRS Criminal Investigation unit and is being prosecuted by Christopher J. Maietta and Joseph A. Rillotta.
Pure Management Group has since been folded into Angel Management Group, which acquired the company and its nine venues in September 2010. The company is now the largest nightlife management company in Las Vegas, owning, operating and marketing 20 venues.
"Lest anyone think otherwise, income in the form of cash is taxable and traceable. Betting on hiding your income from the IRS is like betting on red on an all black roulette wheel. It’s a suckers bet," Paul Camacho, special agent in charge of criminal investigations for the IRS in Las Vegas, said in a statement.
I'll drink to that! a tip of the iceberg. If we would legalize pot and prostituion we could make some money.
That's why the IRS lets clubs like Treasures not deposit or claim any cash and withdraw 2.7 million in cash, from what was probably credit card receipts. You can bet if they were doing it in Texas they are doing it here. they probably just got wise to not structure check withdrawals after having giving up 75% of the 2.1 million Harris County, Texas officials seized after catching the Davaris 2.7 million in structured withdrawals. They used the excuse they needed the cash to pay the dancers when ANYONE that knows a lick about that business knows the girls pay the club in cash to work there, not vice-versa. Need some info Mr. IRS? I can help
As usual, the I.R.S prosecutes the petty crooks but they allow corporations to steal billions. Meanwhile, federal and state governments are bankrupt.
http://www.bloomberg.com/news/2010-10-21...
Umm, but its OK for Cesears to steal tips from employees?
http://www.lasvegassun.com/news/2011/mar...
If the IRS really wanted to get at money, they were investigate all the tax dodging and illegal tax shelters used by rich people.
This is 100s of billions of dollars. No the IRS wastes time and tax money on a night club.
Notice, the IRS did not state how much money was involved. Because if they did, you would see how stupid and a waste of time this was.
I would bet that some IRS got pissed that he could not get into the club, with his $10 tip!
Vegas is really going down hill.
Prison and the felony conviction doesn't make these guys think? WTF?! I guess they're young and stupid!
Good. VIP/Club host? Gimme a break, what a worthless, self-important, self-created "industry," to begin with. Go get a real job loser. After you get done with your "stint," that is.
Davidovici and all the douchebags who worked at Pure unfortunately are now at Chateau doing the same dirty things again. Hopefully the county and IRS shuts that place down too.
Clubs here are a waste of money. This news makes me happy for overly charged clubs.
Oh, puleeze...
Every "club" that's ever EXISTED in Las Vegas, EVERY LAST ONE, could be prosecuted for under-reporting/non-reporting of "tip" money.
It seems ironic to me that this is really the very BUSINESS MODEL that "Vegas" was BUILT ON... but since no real big fish of any consequence has ever been convicted of such, we go after the little minnows.
http://en.wikipedia.org/wiki/Skimming_(c...)
Its simple pay your taxes like everyone else. These night club punks always think there above the law. And mred is correct that this is just a tip of the iceberg.
Only the little people pay taxes.
Yeh it is not only cash to bypass lines, clubs and bars such as Blue Martini charge out of towners a cash fee to enter, apart from being discriminatory it is insulting to customers , if the Blue Martini in Townsquare asked for a $10 entry fee if you where NOT WHITE wow the law would come down on them, but asking for money because you are not from Las Vegas is allowed? NO this is also discrimination and I hope they are prosecuted, I for one have never been back with my out of town friends, they have lost a lot of custom
Just another reason we need to get rid of the income tax and put in a user tax
Oh please, I just want to go 'clubbing'... lol