Maryland Tax Cheat Investigation Nabs Six Nightclubs | WAMU 88.5 - American University Radio

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Maryland Tax Cheat Investigation Nabs Six Nightclubs

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More than half a dozen nightclubs in Prince George's County have been raided as part of a task force looking into tax cheats. Sixteen owners and managers of Prince George's County nightclubs were indicted on tax, alcohol and licensing violations.

Prince George's County State's Attorney Angela Alsobrooks says it was a joint operation by investigators in her office, the Maryland state comptroller's office, Prince George's County police and Maryland state police.

"The investigators found that, in many instances, the establishments were not licensed to sell alcohol," said Alsobrooks. "But they also noticed that many of them were also selling beverages and food without paying the proper taxes. As well, they noticed they had avoided paying the amusement tax, which is required when you pay an establishment to enter. So taxes were being avoided, licenses were not adhered to as well."

The comptroller's office estimates that four of the raided business allegedly failed to pay at least $700,000 in taxes, so the final tax tally could be in the millions. Police also allege that some of the nightclubs might have encouraged violence and criminal activity in the surrounding neighborhoods.

Two of those nightclubs have been closed.

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