SMITH BLOG: Pure case back on the radar as former host pleads guilty

The Las Vegas nightclub subculture was abuzz in February 2008 when Internal Revenue Service agents served a search warrant on Pure Management Group in connection with reports of millions in unreported cash being taken in by the operation's VIP hosts and managers.

At the time, Pure at Caesars Palace was the hottest nightclub in Las Vegas and set the standard for hipsters and party people capable of spending thousands of dollars for bottle service and a booth with a view of the star-studded action.

After the initial raid, however, the investigation went quiet. Questions circulated about whether the raid had been orchestrated by a couple of disgruntled former Pure employees. Would anything come of the investigation?

Apparently, it has.

Reliable sources report former Pure VIP host Ali Olyaie has agreed to plead guilty to a charge stemming from his employment at the club. According to multiple sources, VIP hosts at Pure commonly made thousands of dollars a night in cash tips, much of which went unreported.

After learning that Olyaie was due to make a court appearance, I scoured U.S. District Court Wednesday morning. There was no sign of him. I then learned his appearance was sealed.

Later in the day, a plea memo was unsealed. Olyaie agreed to waive indictment and plead guilty to one tax-related criminal count.

Olyaie is also scheduled to be arraigned on an unspecified felony charge in country Justice Court April 4.