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Strip club owner admits cheating on taxes involving 'champagne rooms'

The owner of the Wild, Wild West strip club in Salina, Kan., pleaded guilty Friday to failure to report taxes on cover charges and on fees he collected from his girls for dancing on stage and for using private “champagne rooms” with patrons.

Kirk Roberts, 49, underpaid the Internal Revenue Service $153,510 over three years.

According to federal prosecutors Roberts charged patrons $3 to $5 in cash to enter the club. He also charged his dancers $25 to $50 per night in cash to dance on the stage and $35 per half-hour in cash for the use of private “champagne rooms.” But Roberts deposited the cash in his personal bank account instead of the business account.

He faces a maximum of three years in prison and a fine of $250,000 for each of three counts. Sentencing is scheduled for April 22.

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