NY DAILY NEWS...The pistol-packing owner of a popular Queens strip club has bared everything for the feds, opening his books to prove he's no boob when it comes to paying taxes.
Robert Potenza's testimony in federal court offered a rare glimpse into the inner workings of a jiggle joint - from his $1.5 million salary to the club's $4.50 cut on every $5 ATM transaction fee.
He says the tax agents who grilled him about the finances of Gallagher's 2000 in Long Island City were babes in the woods when it came to flesh peddling. "They didn't seem like they knew much about my business," he testified.
In a civil bench trial last week, the strip club king insisted he pays his taxes and said his mammary mecca is just a cash cow. The club is awash in cash, with typically $400,000 on-hand, some stashed in a broken refrigerator, a fishing tackle box or atop a metal beam. See Gallagher's website http://www.gallaghers2000.net/index.html
Dollar bills are the life blood, needed to make change - so Potenza's "house moms" collect the singles that dancers receive as tips and give back "tattered" $20 bills. The "good" $20s are stocked in the ATM machine where Gallagher's takes a $4.50 cut on every $5 transaction fee, Potenza said. Gallagher's pulls in about $9,000 in cash a day Sunday through Wednesday and much more Thursday through Saturday.
Brooklyn Federal Judge Brian Cogan noted that the feds' chief witness, the club's former general manager, claims Potenza pays workers off the books but invoked his Fifth Amendment rights when asked about his own income. "If the contention is that the dancers are being paid off the books, why didn't I hear from a dancer?" Cogan wondered, more from this source, click here.
In my experience working as a Private Investigator from Panama City Beach to Sarasota Fl, I have often tailed errant husbands to strip clubs like the Toy Box and the Golden Nugget in Panama City to DaVinci's in Bradenton to Cheetah's and the now closed Scoreboard in Sarasota Fl.
Girls working strip clubs do no get paid by the club, they pay to "dance", they pay the club, the DJ, the bouncer and anybody else with their hand out to strut their stuff on the stage and pick up $25 to $50 per private dance, still paying the club at least 50% of each dance, rates are much higher for the action in the VIP rooms.
Strippers are "independent contractors" requiring them to pay fees -- between $20 and $100 a night -- to come to work, the dancer is forced to work only for tips and "pay for the pole," they receive NO hourly wage.
In the 1990s, court and labor commission rulings in Alaska, California, Oregon and Texas all declared dancers to be employees. Despite what the courts have held, though, the practice of misclassifying adult entertainers is still widespread in the world of exotic dancing, but the employees are too afraid to speak up.
Bill Warner Private Investigator, SEX, CRIME, CHEATERS & TERRORISM at www.wbipi.com