Strip Clubs and Sushi

Lots of fraud this week, so we’ll start with a couple favorites of mine. First, from Inver Grove Heights, Minnesota comes the story of Lawrence Kladek. Mr. Kladek owns King of Diamonds Gentlemen’s Club. Mr. Kladek had an ATM installed at his club. That’s a good idea, given the cash-driven nature of the business. Then he stocked the ATM with business receipts and didn’t put those receipts, which totaled $170,139, on the books. That’s a very bad idea, and Mr. Kladek has pleaded guilty to filing a false income tax return.

There are a few less sushi restaurants open in British Columbia. The Royal Canadian Mounted Police raided four restaurants which had purchased an interesting computer program.

Bradley Alvarez of the Canada Revenue Agency told The Province that, “Businesses are suspected of having hidden thousands of transactions and millions of dollars in sales across Canada.” The software, from InfoSpec Systems in Richmond, BC, will save an owner taxes. The RCMP noted in its application for a search warrant that an InfoSpec spokesman allegedly said that the software can be used for “deleting cash sales.” Additionally, the software vendor claimed that you can take the cash and “pay kitchen staff.” There’s no reason to stop at one felony when you can commit two, eh?

Anyway, five individuals are charged with tax fraud and could be sent away for several years. And there’s that matter of those deleted transactions and the tax owed thereon.

One Response to “Strip Clubs and Sushi”

  1. […] Richmond, British Columbia firm marketed an interesting computer program. As I noted when I first wrote about this (in 2008): Bradley Alvarez of the Canada Revenue Agency told The Province that, “Businesses are suspected […]