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Feb. 21, 2008
Copyright © Las Vegas Review-Journal

Offices of Pure nightclub targeted by IRS agents

By ADRIENNE PACKER
REVIEW-JOURNAL

Steven Cojocaru, right, interviews actress and talk show host Ricki Lake, second from right, during a red carpet affair Wednesday night at Pure nightclub celebrating Bette Midler's debut at Caesars Palace.
Photo by K.M. Cannon.

Agents with the Internal Revenue Service raided the offices of nightclub operator Pure Management Group on Wednesday, but it was unclear what specifically the agency was investigating.

A source also confirmed that agents visited Pure nightclub at Caesars Palace.

The action came on the same day that Bette Midler opened her new show at the 4,100-seat Colosseum at Caesars Palace. A red carpet affair Wednesday night at Pure celebrating Midler's debut was not affected by the investigation.

"Pure Management Group is fully cooperating with this IRS investigation and looks forward to a quick and satisfactory resolution," a statement released by the company said. "Until that time, we will have no further comment on this matter."

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    • Diana Nielsen, a spokeswoman for the IRS, declined to comment Wednesday other than to say that she was at 2121 Industrial Blvd., which is the headquarters for the Pure Management Group.

    Bill Cassell, a spokesman for the Metropolitan Police Department, said he was unaware of any police officers being involved in the raids.

    Pure Management Group owns some of the most popular venues in Las Vegas, including the Pussycat Dolls Lounge and Venus Pool Club at Caesars; Coyote Ugly in New York-New York; Fat Tuesdays in the Forum Shops at Caesars Palace; Tangerine Lounge & Nightclub at Treasure Island; and Social House at Treasure Island. The company's success has resulted in high-profile investors such as Andre Agassi and Steffi Graf, Shaquille O'Neal and Celine Dion.

    "They have had a huge impact on the nightlife industry in Las Vegas," said Bryan Bass, who teaches a nightclub management class at University of Nevada, Las Vegas. "This is a pretty serious thing. It could have a long-lasting effect on the way that company does business."

    Wading through the finances of a nightclub company could be complicated by the nature of the business, Bass said.

    Ownership is complex, and business structures can vary depending on the resort property where a club is located.

    "Then they need to go out and raise money, so there are investors," Bass said.

    News of the government's interest in Pure is reverberating through a scene that in a few short years blossomed from a Las Vegas sideshow to an industry worth hundreds of millions of dollars in revenue. Last year Pure in Caesars Palace was named the number one night spot in the country by E! Entertainment channel.

    "It is certainly the biggest nightclub issue to date," Bass said.

    Review-Journal reporter Benjamin Spillman contributed to this report. Contact reporter Adrienne Packer at apacker@reviewjournal.com or (702) 384-8710.

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    None wrote on March 28, 2008 09:30 PM: You guys are all haters because you are probably burger flipping losers that can't afford to even pay the cover! So just forget about it because they will continue to be the #1 nightclub.


    try dressing well next time. wrote on March 10, 2008 09:25 AM: Wow. All you people sound so bitter, probably about not getting in. Skimming is something that happens in every business, and is something that most businesses count on and account for. It's not something a company is liable for. Pure isn't a cut rate business, so you might as well toss out your hopes that they'll be shut down (hopes that you made when you couldn't get in), this will be cleared up soon and the show will go on.


    stevo wrote on March 01, 2008 07:18 AM: It is well known that these "doormen" collect up to 400k per year and pay 300k back to the club which goes right into the pockets of the owners Frey and Davidovicci.

    These two have been socking away all this extra cash without declaring it.

    They are busted.


    princess702 wrote on February 29, 2008 10:30 PM: The way people get took for money in Vegas is outrageous! Someone from the IRS needs to go to Sapphire Gents club and check out the skimming going on in that place. IT is out of control!!


    Anthony wrote on February 25, 2008 11:22 AM: that guy with the long hair in the front of the line is going down,, that greese ball


    S wrote on February 22, 2008 05:06 AM: Bouncer extort people for the opportunity to spend more money if they are"chosen "to go inside. Hope they go over every bouncer and his finances at every Pure Management Club. Heard the head bouncer at LAX made 50k the first month.


    What is a NightClub? wrote on February 22, 2008 12:04 AM: cool name + cool bar + DJ = nightclub.

    Now serve cheap wine or other drink in dirty glass for outrageous prices (not including tip). Patron pays in CASH, which goes where? Hmmmmm. Makin a "living" getting people drunk, some seriously drunk.


    LATEST wrote on February 22, 2008 12:00 AM: I heard from inside sources that employees (whose names are now known by IRS) are going to be scrutinized in their tax returns relative to lifestyles. That Sucks!


    CALI wrote on February 21, 2008 07:41 PM: Too many new business owner's move to the U.S. to open cash based businesses. The problem I have is how they charge and how rapidly they financially sceme to get American's money. In unprecidented speed,greed, and numbers. We must resolve the massive fleecing of our American population. This article is another epithany. Just try to sell to any one of these new opportunists. Need I say anything more???


    Question wrote on February 21, 2008 04:24 PM: Bouncer- How many $100s per night did you stuff in your pocket (and never report) to let many people cut the line in the hype?


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