Former strip club owner gets 20 months for ATM tax evasion

[Evil Squirrel Overlord]

http://www.startribune.com/local/53814067.html

Former strip club owner gets 20 months for ATM tax evasion scheme

A federal judge in St. Paul today sentenced former strip club owner Larry Kladek to 20 months in prison for tax evasion and ordered him to pay $40,000 in fines immediately and make restitution to the IRS.

Kladek owned the King of Diamonds strip club in Inver Grove Heights when he was indicted last year charged with evading income taxes through a scheme that funneled cash into a secret account every time a customer made a withdrawal from an ATM at the club. IRS investigators say Kladek amassed about $2 million that he used the money to buy investments and help build his expensive home.

[Mr. Mephistopheles]

I'm too late for the T&A banter but I can tell you, (not from experience of course), that ATM's at tee-tee bars charge rather usurious fees. I know this because there was this guy, (not me of course it was uhhh one of my friends), ran out of cash at one and a really friendly gal (who happened to be dressed like a cheerleader) told him he would be wise to go get some more cash from his car rather than pay the $25+ ATM fee.

[webhick]

Kladek owned the King of Diamonds strip club in Inver Grove Heights when he was indicted last year charged with evading income taxes through a scheme that funneled cash into a secret account every time a customer made a withdrawal from an ATM at the club. IRS investigators say Kladek amassed about $2 million that he used the money to buy investments and help build his expensive home.

I'm wondering how that worked. Did the machine charge a bogus ATM fee which went to his secret stash, did it overcharge the customer's account, or did the customer receive less cash than intended (which I guess would only be easy to do if the ATM stocked singles)?

[bmielke]

If someone has used your ATM card without permission report them to the bank and more importantly the police. You need to report them as soon as possible, Bank of America only gives you 15 or 20 days to report fraud your bank might be more or less.

[Pottapaug1938]

Kladek owned the King of Diamonds strip club in Inver Grove Heights when he was indicted last year charged with evading income taxes through a scheme that funneled cash into a secret account every time a customer made a withdrawal from an ATM at the club. IRS investigators say Kladek amassed about $2 million that he used the money to buy investments and help build his expensive home.

I'm wondering how that worked. Did the machine charge a bogus ATM fee which went to his secret stash, did it overcharge the customer's account, or did the customer receive less cash than intended (which I guess would only be easy to do if the ATM stocked singles)?

This is one reason why I stay as far away as possible from ATMs in places like this -- or even in places like convenience stores.