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Former nightclub owner admits to filing false tax return

Former nightclub owner admits to filing false tax return

By Makayla Zurn. CREATED Mar 27, 2012

Las Vegas, NV (KTNV) --The former co-owner of Pure Nightclub has admitted to filing a false tax return and owing the government more than $100,000.

In 2008, the IRS executed search warrants on Pure, it's managing group, and the personal residence of managing partner, Steve Davidovici.

For four years, Davidovici has been at the center of an IRS investigation into hundreds of thousands of dollars in "tips" that was not being reported to the government.

"Some people in this town receive payments for preferential treatment to bypassing the line or get a better table. Well here's the message today, it's taxable," said IRS Criminal Investigator, Paul Camacho.

Today, Davidovici pleaded guilty to filing a false tax return and not reporting close to $400,000 of cash income. A loss to the IRS of $141,306.

"The amount is significant. It's significant to somebody who does file their tax returns and works really hard and knows that being a good citizen of the United States is to pay your fair share of taxes," said Camacho.

Also a part of the investigation, 47-year-old Mikel Hasen, a former doorman at Pure. He pleaded guilty to under reporting on his 2006 tax return today. He acknowledged he owes the government $80,000 to $200,000.

Both could face maximum jail time of three years.

Davidovici's attorney David Chesnoff released this statement to us:

“Steve Davidovici takes full responsibility for the mistakes he made in completing his tax return more than five years ago. From the beginning, Mr. Davidovici has been willing to repay whatever amount he legitimately owed in back taxes. We are pleased to have reached a settlement with the government. Mr. Davidovici wants to repay his tax debt and move forward.”

The current owners of Pure Nightclub -- Angel Management Group -- have not returned our calls for comment. Davidovici and Hasen will return to federal court for sentencing on June 27th.