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NORM: IRS probe of clubs has some on edge












Details are emerging about the inner workings of the Las Vegas club scene, after last week's federal raid on the city's biggest nightspot left the industry rattled.

The Internal Revenue Service raid Wednesday at Pure Nightclub at Caesars Palace and Pure Management Group's headquarters served notice that the government is taking a hard look at the cash-bloated clubs.

Some doormen are making $400,000 to $500,000 a year, sources told me.

Shaken employees from several local clubs contacted me to say they participated in what they are convinced was questionable handling of cash night after night.


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  • A club regular e-mailed me text messages that appear to show aggressive shakedown tactics by some doormen.

    A longtime doorman at a major club said he pulled in $22,000 in tips in a single night from clubgoers. Of the $22,000, he took home only his $600 a night pay.

    After the doormen's haul was counted out at 4 a.m. in a popular restaurant at the property, the rest went to the company, the source said.

    "We were allowed to cut our own deals. There was no supervision whatsoever. We were making so much that the company finally got scared we were gouging people. It's that big," he said.

    Some nightclubs, he said, have placed employees in restrooms outside the clubs and provided them with ink stamps for lucrative under-the-table deals with clubgoers who don't want to wait in line.

    A club regular sent me a printout of angry text messages he and a friend received in December after a Pure doorman demanded an additional tip.

    "No tip," texted the doorman, "and I just comped MORE people, I hope you make a trip to the front door and make this right."

    When the patron objected, saying he had already tipped on the way in, the doorman responded:

    "Bullshit, I am the host that walked you all in !!!!!!!!!"

    After several more text message exchanges, the doorman wrote, "Get down here now!" before adding this ominous line: "Don't come around, this company and myself need you like I need a hole in my head, move on *nd stay AWAY, or u know the rest."

    The longtime doorman I interviewed added, "This IRS thing is going to change how all the clubs operate. Gaming licenses are at stake."

    Meanwhile, this clarification: In Saturday's column, I inadvertently omitted a word in a sentence about whether the probe had included LAX Nightclub at Luxor. The sentence should have read: "An IRS spokeswoman on Friday said she could not confirm" an IRS search at LAX on Thursday.

    However, the IRS spokeswoman, Diana Neilson, on Saturday said, "During the normal course of business, we are contacting third party individuals for various information, and I'm sure that's what was going on. It wasn't like a formal operation."

    Asked if it was likely that the investigation would widen, Neilson said, "No comment."

    THE SCENE AND HEARD

    Audience members who have attended Bette Midler's "The Showgirl Must Go On" at Caesars Palace are grousing that the giant LED screen is not showing closeups of Midler and her cast.

    A Friday attendee who said she paid $189 for a second mezzanine seat was unhappy that she couldn't make out faces from that far up.

    Show spokeswoman Kris Lingle said the LED screen, a fixture in Celine Dion and Elton John shows at the 4,000-seat Colosseum, "is not used as a live LED screen but rather as a constant background of video and show projections." Expect a chorus of dissatisfaction.

    SIGHTINGS

    Actor/comedian Jay Mohr and wife Nikki Cox, formerly on NBC's "Las Vegas," at Midler's show on Saturday. ... Singer Ashlee Simpson, attending a fan meet-and-greet session Friday at the Pink Taco restaurant (Hard Rock Hotel). Simpson later dined at Social House restaurant (Treasure Island) with boyfriend Pete Wentz of the music group Fall Out Boy. They also checked out Pure nightclub (Caesars Palace) with her father, Joe Simpson. ... Actors Freddie Prinze Jr. and Macaulay Culkin, checking in separately this weekend at the Palms' Fantasy Tower. ... Actor Robert Iler of "The Sopranos," hosting the evening's festivities Friday at Privé nightclub (Planet Hollywood Resort). Also at Privé: Kansas City Chiefs fullback Boomer Grigsby.

    THE PUNCH LINE

    "There's never been a Best Picture with 'Hottie' or "Nottie' in the title." -- From David Letterman's Top Ten Signs Your Film Is Not Going to be Winning an Oscar

    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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    robertw wrote on February 26, 2008 04:55 AM: A friend of mine who is a vegas local insists to me that valet parkers on the strip make 100K a year also.
    I have always told him that there is more to the story and I did not believe that amount of money was made. Not that parking cars in 100+ degree heat is always fun either. I think obviously dealers in the wynn and bellagio and maybe one or two other hotels make top money, but i doubt that impression that stip deals are all wealthy.


    Bill wrote on February 25, 2008 12:40 PM: I was VIP at Body English and even had a special lanyard to get into a private party and had to wait 30 minutes. Once I finally got it they wanted $8 for water that was free at the earlier party so I started drinking their free drinks from some vodka company. The Maxim women were there promoting something but were more interested in how they could get drinks without being caught since they weren't allowed to drink while they were on the job.


    amber wrote on February 25, 2008 08:34 AM: Soooo TRUE! I went to LAX and after being VIP "supposedly", I waited for an hour and then when I handed the doorman my I.D. I was told to put money in a big jar as I entered the club. I did so because I new a bartender inside and thought he might get a piece, "wrong", it all goes to the management and the door men. He told me this during my 15 minute stay as I baisically ran out of the club to get out of the crowd and the smoke. I felt robbed!


    Johnny Boy wrote on February 24, 2008 07:28 PM: Uh, who would WANT to see a close-up of Bette Midler? Consider yourselves lucky!!


    j higgins wrote on February 24, 2008 04:01 PM: i think its long overdue that the thug doormen and preditory clubs aregetting what they deserve, they have been shaking down club patrons for years, its true that absolute power corrupts...and to all you who allude that its somehow a stupid that anyone would even want to to clubbing on the strip, whats the difference between gambling,dining,or staying in a room on the strip and club going on the strip..a shake down is a shake down....there is nothing wrong with making money, but making obsene amounts of money off unsuspecting people is wrong...maybe this will change the way the club scene is ran...watch out south beach, you are next...


    David wrote on February 24, 2008 02:57 PM: I always wondered the lure of nightclubs on the strip. Now I know and hope the casinos are penalized commensurate with the huge amounts of cash payments received for entrance into these sodom and gommorah palaces.


    Tom, Burbank wrote on February 24, 2008 02:07 PM: I'm glad the Bette show doesn't use big screens. I saw the show and it was great to truly watch the performers on stage instead of basically "watching TV."

    Mark$, you hit the nail on the head. This is a huge story involving all the major "legitimate" corporations allowing money laundering (at the least) and participating at worst. Where's the real reporting?


    Vegas Dave wrote on February 24, 2008 02:04 PM: Caesar's Palace has went downhill in the last 10 years. First, they gave up half of their casino floor space for that joke a singer Celine Dion. Then, they sold their soul for the having a nightclub like Pure on premises. Very few of the punks that go to Pure gamble, so they gained nothing but rent from this move. I will never step foot in Caesar's Palace again -the waitresses are about 70 years old, the gambling area is way too small, etc. Like I said, whoever made these decisions for Caesar's over the last 6 years should be fired.


    The Donald wrote on February 24, 2008 01:51 PM: Lee, did you know that Nikki Cox was engaged to Bobcat Goldthwaith - that tool from the Police Academy movies? Jay Mohr looks like Sylvester Stallone compared to him! Ha! Ha! She also spread her legs for that 5'1" gay boy Kevin Connelly. Obviously she has major self-esteem issues. Take away her lip injections and boob job, and you have one messed up bimbo.


    Mark wrote on February 24, 2008 01:43 PM: The nightclubs in this town are just stealing from people. $30 to get in, $7 for a bottle of water, $10 for a bottle of beer and $19 for a cocktail. This is disgusting and they need to be careful, because people will go somewhere else.


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