{"id":23758,"date":"2016-05-27T12:13:42","date_gmt":"2016-05-27T19:13:42","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=23758"},"modified":"2016-05-27T12:14:45","modified_gmt":"2016-05-27T19:14:45","slug":"strip-club-operators-found-guilty-keeping-two-sets-books-filing-false-tax-returns","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=23758","title":{"rendered":"Strip Club Operators Found Guilty of Keeping Two Sets of Books and Filing False Tax Returns"},"content":{"rendered":"

OREGON<\/span><\/strong><\/p>\n

\n

A federal jury found three family members who ran two strip clubs in the Portland area guilty of conspiracy to defraud the United States and charges relating to the filing of false tax returns after a six day trial, officials announced Thursday.<\/span><\/p>\n

\"FederalDavid G. Kiraz<\/strong>, his father George D. Kiraz,<\/strong> and David\u2019s brother Daniel Kiraz<\/strong>, ran two Portland-area strip clubs \u2013 Cabaret Lounge I \u00a0and Cabaret Lounge II \u2013 and engaged in a scheme to defraud the federal government by filing false federal income tax returns with the IRS, according to the evidence.<\/span><\/p>\n

In addition, the jury found David Kiraz guilty of three counts of filing false tax returns; George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of false tax returns.<\/span><\/p>\n

\u201cThe Kirazes engaged in a long-running conspiracy to defraud the U.S. Treasury and today, a jury held them accountable for their crimes,\u201d said Acting Assistant Attorney General Caroline Ciraolo. \u00a0<\/span><\/p>\n

The evidence showed that from 2007 through mid-2011, the strip clubs collected cash through both cover charges from customers and stage fees from dancers.<\/span><\/p>\n

In addition to stage fees, the dancers were routinely required to pay fines for various etiquette infractions. <\/span><\/p>\n

The defendants maintained a set of books at the Cabaret clubs which recorded the sales, lottery and ATM fees but not the stage and door fees.<\/span><\/p>\n

Also they maintained a second set of books, which tracked all of the cash receipts including the stage and door fees, at the home of David Kiraz, the evidence indicated.<\/span><\/p>\n

A video played in court showed a 2010 meeting between George Kiraz and an undercover IRS agent posing as a prospective buyer of the strip clubs.\u00a0 The IRS undercover agent was given a copy of the Kirazes\u2019 second set of books, including the stage and door fees, at that meeting.<\/span><\/p>\n

Further evidence proved that the business activity of the strip clubs was reported each year on the individual income tax return of David Kiraz.<\/span><\/p>\n

The defendants gave their tax return preparers the false financial records maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report substantial amounts of cash obtained through cover charges, stage fees and fines.<\/span><\/p>\n

Their actions resulted in underreporting of taxable income of more than $1.5 million and caused a tax loss of more than $500,000 for tax years 2007 through 2010.<\/span><\/p>\n

The date for the sentencing hearing before U.S. District Judge Robert E. Jones has not yet been set.<\/span><\/p>\n

Each defendant is facing up to five years in prison on the charge of conspiracy to defraud,and three years in prison on the charges of filing false tax returns, officials claim.<\/span><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

OREGON A federal jury found three family members who ran two strip clubs in the Portland area guilty of conspiracy to defraud the United States and charges relating to the filing of…<\/p>\n","protected":false},"author":1,"featured_media":2717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1725,2686],"class_list":["post-23758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-irs","tag-strip-club"],"yoast_head":"\nStrip Club Operators Found Guilty of Keeping Two Sets of Books and Filing False Tax Returns<\/title>\n<meta name=\"description\" content=\"OREGON A federal jury found three family members who ran two strip clubs in the Portland area guilty of conspiracy to defraud the United States and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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