Posts Tagged ‘StripClubs’

Lingerie Madam Gets Year for Tax Fraud

Saturday, October 22nd, 2005

The alleged Palos Park Madam (of suburban Chicago) successfully dodged prostitution charges. But she was less successful in avoiding tax fraud charges and will soon spend a year in jail.

Dawn Hansel had been accused in the past of everything from cocaine sales, attacking her mother-in-law, and running an upscale prostitution ring. She managed to beat all those charges. This week, though, she was sentenced to a year in prison and three years of probation for not paying $250,000 in taxes to the IRS. Ms. Hansel plead guilty to not reporting the income from cash sales in her lingerie business, “Vogue Fashions.” Well, Ms. Hansel said it’s a lingerie business but state prosecutors allege it’s a prostitution ring.

The judge put it best, “To say Miss Hansel has an unusual background understates all the characteristics she comes with.”

Coverage: Chicago Sun-Times, Daily Southtown.

“Cops Moonlighting as Strip Club Bouncers Charged with Tax Fraud”

Saturday, April 9th, 2005

The headline says it all.

>From the Chicago Tribune, this story (one-time registration required) details the sordid details, which include:

– The strip clubs owner, Michael G. Wellek, had $12 million in cash (in bags) seized in 2003 from his clubs;

– The government says Wellek owes $11 million in taxes, penalties and interest (to be resolved in Tax Court later this year); and,

– Wellek’s attorney has the line of the day, “its unfortunate if these gentlemen are in the circumstances of not having reported it on their income-tax return.” Well, that’s what tax fraud is: not reporting income you earned on your return.

Cheat $3.7 Million, Pay $1.4 Million

Tuesday, March 1st, 2005

Adult videos can be a lucrative business. Michael S. Morrison of Atlanta owned some adult video stores. In 2000 & 2001, he reported on his tax return lower “booth rentals” because of competition. The IRS felt otherwise. As the Atlanta Business Chronicle reports, the government investigation found that Mr. Morrison had “sticky fingers” and skimmed the money. He also underreported other income.

The result? 3 years, 10 months in prison; 3 years supervised release; community service; and pay the IRS $1.4 million.