COLUMN: John L. Smith

Spearmint Rhino owners expanding empire with British invasion

Whether you consider topless cabarets acceptable adult diversions or shadowy dens of iniquity, you have to admit the Spearmint Rhino club has one catchy name.

It's probably safe to say its patrons are unlikely to confuse it with other topless joints, and surely that's the way Spearmint Rhino's owners like it. It turns out developing brand loyalty is important, whether you're selling breakfast cereal or babes and boobs.

It must be working. These days, the Spearmint Rhino empire is rapidly expanding. From clubs in California, to one in Las Vegas, the company has created something of an American invasion in England, where majority owner John Gray has opened six clubs with plans for up to 100 more.

With that kind of expansion in mind, there's talk that Spearmint Rhino might begin selling stock as a publicly traded company. It makes you wonder what those stockholder meetings might look like. I'm willing to bet they'd be well attended.

In Las Vegas, the club operates with a somewhat confused ownership status. Admittedly, I'm the one confused.

Although it is listed on the company's Web site as one of several Spearmint Rhino clubs, the Las Vegas cabaret is officially not owned by Gray, but by local attorney Kevin Kelly, Gray's long-time partner Thomas Nabarrette, and Mumtaz Ali. When asked about the ownership issue, and the fact the Las Vegas club was listed on the Gray-owned company Web site, Kelly said it was possible Nabarrette had worked out an agreement with his friend to advertise the club on the Internet.

Makes sense, but it doesn't exactly explain why the only reference to the topless company on the secretary of state's Web site lists Gray as secretary and treasurer of The Spearmint Rhino Worldwide Inc. The Las Vegas club is owned by K-Kel Inc., which lists Kelly and Ali as officers, but not Nabarrette.

No matter. The Las Vegas Spearmint Rhino officially is not owned by Gray. Which is probably a good thing considering Gray's controversial past, which was recently profiled by reporters Adrian Gatton and Paul Lashmar in the Independent newspaper of London.

The story caught the topless entrepreneur attempting to rewrite his personal history. In the Feb. 17 article, Gray was quoted briefly denying his criminal past -- he has a couple convictions in California for making a false statement to win a military contract and bouncing checks -- before fessing up to reporters. The boss also failed to explain why he once used several aliases, including Johnny Win, John Luciano, and John Luciano Gianni.

Gray served six months in jail, according to the newspaper, and emerged with plans to expand his topless bar empire. Next stop, Las Vegas. Although that move officially did not work out, and Gray's name is not listed on the local paperwork, it did not deter him from hopping overseas, where he has taken England by storm as the sole director of Spearmint Rhino Companies of Europe Ltd. According to the Independent, Gray's clubs are popular with businessmen and a favorite site for office parties.

Possibly standing in the way of his expansion plans in England are those pesky background details, which he apparently didn't disclose in much detail to licensing authorities.

A year ago, police reported that, in their opinion, "activity within the club, intentionally or otherwise, borders on offenses of prostitution and permitting the keeping of a brothel."

In Las Vegas, police have uttered similar phrases for decades. Every few years, an undercover vice unit compiles enough evidence of whispered propositions and backfields in excessive motion to make headlines and a few arrests. Beyond a little embarrassment and some attorney fees, the club owners are rarely ruffled.

It's probably only a coincidence that the topless operators perennially rank among the top donors to local political campaigns, showering thousands of dollars on favorite candidates and maintaining close contact with their public official friends thereafter.

Somehow, Gray didn't officially make the grade in Las Vegas.

Hey, our loss is England's gain.

John L. Smith's column appears Tuesday, Wednesday, Friday and Sunday. E-mail him at Smith@lvrj.com or call him at 383-0295.

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