Strip Club Owner to Forfeit $1.5 Million After Guilty Plea

The owner of a Connecticut strip club agreed to give up $1.5 million and pay $700,000 in restitution after pleading guilty to tax fraud and other charges tied to a scheme involving prostitution, money laundering, and fraudulent Covid-19 relief loans, federal prosecutors said.

Kenneth Denning and his employees at the Electric Blue strip club encouraged dancers to engage in commercial sex transactions with customers in private rooms, according to the press release issued by the US Attorney’s Office for the District of Connecticut Tuesday. The club collected cash fees from these transactions, which Denning then used for personal expenses and ...