U.S. Department of Justice Marcos Daniel Jiménez United States Attorney for the Southern District of Florida
	99 N.E. 4 Street Miami, FL 33132 (305) 961-9001

“CLUB ECSTASY” STRIP CLUB OWNER
SENTENCED TO 15 MONTHS IN PRISON FOR TAX EVASION

Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida, and Lorraine Johnson, Acting Special Agent in Charge Internal Revenue Service, Criminal Investigation, announced today that Jacqueline Jeudy Kendrick, an owner and operator of “Club Ecstasy,” a strip club, in Fort Lauderdale, Florida, was sentenced by United States District Judge Kenneth Marra to 15 months in prison for tax evasion charges stemming from her failure to pay personal income taxes. Kendrick was also fined $4,000 and ordered to pay back more than $380,000 in tax owed to the IRS. Club Ecstasy has also been closed.

The three-year investigation by the IRS showed that Kendrick had failed to file any personal income tax returns and had failed to pay any federal taxes for 1995, 1996 and 1997, while making almost $1 million in total taxable income for those years through the adult entertainment business. To evade paying any taxes, Kendrick intentionally did not have Club Ecstasy issue any Internal Revenue Service Forms 1099 and W-2 for her income and routinely discarded documents showing earnings and income from her business.

The IRS investigation showed that Club Ecstasy was typically generating up to approximately $30,000 per week in cash receipts. IRS’s investigation showed that with her earnings from Club Ecstasy, Kendrick bought her former residence for over $800,000 in Hallandale, Florida; gave $100,000 to one of her daughters as a down payment for the daughter’s house; and purchased luxury vehicles, including a Mercedes, a BMW, and a Range Rover.

Mr. Jiménez commended the investigative efforts of the Internal Revenue Service, Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Richard Hong.

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