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NORM: Feds take a look at LV cash flow


Photo by Jeff Scheid.

A lot of people saw it coming.

Rumors have been flying for more than a year that the high-flying, cash-laden nightclub scene was being scrutinized by the feds.

The shoe dropped Wednesday when the Internal Revenue Service and other law enforcement authorities raided Pure nightclub and Pure Management Group headquarters, confiscating a number of computers.

Cash-heavy operations are known to get the attention of the IRS.


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  • Sources have been telling me that doormen at several clubs are clearing $8,000 to $10,000 a night before they share tips. So much cash is pouring in that some doormen are making $400,000 to $500,000 a year, several nightclub executives told me.

    "Pure has guys at the door making more than the president," said one executive with intimate knowledge of the cover-charge system. He was referring to the annual salary of the president of the United States, which is $400,000, plus benefits.

    A Pure executive told me over the weekend that 5,000 people showed up for Paris Hilton's 27th birthday party and her guest appearance with the Pussycat Dolls.

    About six months ago, on a busy night at Pure, I overheard two men bitterly complaining about the cover charge. "They wanted $1,000 per person. I said the highest I'd go was $800!" one said.

    It's not just Pure, the largest club in town with a capacity of 2,400. Grumbles about nightclub gouging have been growing louder.

    In my nearly completed book "Vegas Confidential: Sinsational Celebrity Tales," I write: "It's no secret that most clubs understand that the longer the line the higher the anxiety. That's where the 'line slide' comes in.

    "If people have been waiting all night, they're not going to go somewhere else and start over," said a club exec (not at Pure).

    "Club employees, usually the size of big league umpires, will go down the line and fish for people who really want to get in. The line guy might get $200, but now everyone in the group is still going to have to pay a $30 to $40 cover charge. Sometimes, the doorman demands more, maybe $50 to $100 per person."

    Then there's bottle service, which means you have to buy a bottle to sit in the VIP section. The usual requirement is one bottle per three patrons. Two-bottle minimums are not uncommon. Bottles at most clubs are going for $350 to $650 a piece.

    WYNN WOOING GANS?

    Is a Danny Gans-Steve Wynn reunion in the works?

    Wynn attended Gans' show Tuesday at The Mirage and held a "post-show pow-wow," KVBC-TV, Channel 3 entertainment reporter Alicia Jacobs said in a report Wednesday.

    Gans, who was hired by Wynn when he owned The Mirage, has a year left on his 10-year contract.

    Jacobs said her sources said Paris Las Vegas is "also making a play" for Gans, who has one of the most successful shows on the Strip.

    SIGHTINGS

    "Dancing With the Stars" professional Kym Johnson, brought on stage to dance with Bryan Cheatham during the Chippendales show (Rio) on Tuesday. The Cincinnati Reds' Hall of Fame catcher Johnny Bench, dining at N9NE Steakhouse on Tuesday. ... Reality TV star Dog the Bounty Hunter (aka Duane Chapman) and linebacker Patrick Willis of the San Francisco 49ers, stopping by the Playboy Club (Palms) on Tuesday with separate parties. ... Singer LeAnn Rimes, celebrating her sixth wedding anniversary with Dean Sheremet on Monday at "Love" (Treasure Island). ... Host John Stossel and his crew from the ABC show "20/20" filming an interview Tuesday with the Chippendales for an upcoming episode scheduled to air in March.

    THE PUNCH LINE

    "Good news for Barack Obama. The founders of Ben & Jerry's ice cream are endorsing Barack Obama instead of Hillary Clinton. Which makes sense, because 'BaRocky Road' is a much catchier name than 'Pantsuits & Cream.'" -- Conan O'Brien

    Norm Clarke can be reached at (702) 383-0244 or norm@reviewjournal.com. Find additional sightings and more online at www.normclarke.com.

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    Mark Johnson wrote on March 26, 2008 05:50 PM: The gouging at these night clubs give Las Vegas a black eye. Three hundred dollars for a bottle of spirits...come on !! Greed will kill the hand that feeds it. Mayor of Las Vegas should comment on this....


    Ray wrote on February 23, 2008 10:28 AM: Where do I sign up???


    mikee wrote on February 23, 2008 06:04 AM: dont think for a minute that pure upper management does not no whats going on here..they built this stucture and are making the most money of all. one thing i know is that the irs likes to prove a point so when and if prosicutions begin these guys that are going down.


    David wrote on February 22, 2008 03:01 PM: The last person to post made that story up, or he's just a terrible person, probably the former. Anyway, there's nothing wrong with what these people are doing, if you're willing to pay more to get into the club, do it; it's a privilege to get into the club, not a right. And no, the workers don't need to find people to pay more to enter, people come to them with offers of extra money to get in.


    I ratted one out wrote on February 22, 2008 02:02 PM: I knew a guy who was a door man. He used to tell me how he made all kinds of money (tax free). He had a couple of really nice cars and huge house. I got his personal details, took pictures of cars and house, and sent the whole package to the IRS. A year and a half later...he was in BIG trouble! hahaha.


    Double Down Darren wrote on February 22, 2008 01:42 PM: Paying all that money to get into the club, drink and rub up against silicon filled gold diggers makes less sense than betting on the worst "sucker bet" at the craps table. Save your money for gambling and the cute hookers that troll the casino floors! It's a much safer bet (just use a rubber).


    John Brogan wrote on February 22, 2008 12:20 PM: What a bunch of losers!!! Anyone who would wait in line for hours and then pay hundreds of dollars total is an insecure idiot.


    slanders wrote on February 22, 2008 12:14 PM: The price people will pay to be seen is borderline psycho.


    Vegas Johnny wrote on February 22, 2008 11:42 AM: $500k seems light...


    jen wrote on February 22, 2008 11:20 AM: get a new resume ready...


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