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

PRESS RELEASE

FOR IMMEDIATE RELEASE
For Information Contact Public Affairs
January 15, 2003 Jacqueline Becerra, Acting Special Counsel for Public Affairs, (305) 961-9243
 
Marjorie M. Selige, Public Affairs Specialist, (305) 961-9048

“CLUB ECSTASY” STRIP CLUB OWNER PLEADS GUILTY TO TAX EVASION CHARGES

Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida, and Lorraine Johnson, Acting Special Agent in Charge, Internal Revenue Service (IRS), announced today that Jacqueline Jeudy Kendrick, age 48, who owns and operates “Club Ecstasy,” a strip club, in Fort Lauderdale, Florida, pled guilty to all charges of tax evasion stemming from her failure to pay personal income taxes. Sentencing is scheduled for April 4, 2003, at 1:30 p.m., before United States District Court Judge Kenneth A. Marra.

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 expensive cars, including Mercedes, BMW, and Range Rover vehicles.

Kendrick, who faces up to 5 years of imprisonment and a maximum fine of $100,000, surrendered to the custody of the United States Marshal today.

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

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