84°F
weather icon Clear

Questions remain a year after raid

Who knew?

With the one-year anniversary approaching of the Internal Revenue Service raid directed at Pure Management Group venues, the question is still out there: was there a whistle-blower?

The U.S. government, through whistle-blower provisions under the IRS code, allows a whistle-blower -- it can be a complete stranger or a former employee with the company -- to collect a share of between 15 percent and 30 percent of what the government collects.

The megaclubs are huge cash machines, some reportedly hauling in $40 million to $50 million a year. A whistle-blower might consider the payoff worth all the sleep deprivation.

If skimming was involved, a whistle-blower would likely have intimate knowledge of the process, including rumored under-the-table payouts to celebrities who might have underreported their appearance fees.

Sixteen boxes of material were removed from the raid at PMG's headquarters behind Circus Circus on Feb. 20, 2008.

In other club industry news:

The nightclub giant Light Group has taken over management of the 5,000-square-foot Revolution Lounge, which opened two years ago at The Mirage. Cirque du Soleil and MGM Mirage had operated Revolution through a joint partnership.

Light Group had pursued an ownership piece of Rok Vegas at New York-New York, but that met some resistance.

Rockhouse, affectionately dubbed an "ultra dive bar" by owner Jonathan Fine, is going against the grain in these recession-challenged times.

Fine says business is more than fine -- January and February revenues were up 80 percent over last year. He's convinced people are looking for more of a no-frills night out.

Instead of Cirque du Soleil touches, go-go dancers swing from old tires amid two-for-one beer specials.

The space was occupied by the karaoke club, Tequila Joe's, before Jeff Beacher briefly attempted a bar version of his "Madhouse."

THE SCENE AND HEARD

"The Adam Carolla Show," which fills the 5-10 a.m. slot at KXTE-FM, 107.5 Extreme, is going off the air.

CBS has pulled the plug on the show, which replaced Howard Stern when he went to Sirius satellite radio three years ago.

No word yet on the replacement.

SIGHTINGS

Brad Pitt, with sons Maddox and Pax, at the Hard Rock Hotel on Wednesday. ... Tara Reid, and her father, Tom, with Palms owner George Maloof at Joe's Seafood, Prime Steak & Stone Crab (Forum Shops at Caesars) on Wednesday. Maloof was on the telephone throughout dinner, conferring with his brothers Gavin and Joe on a trade between the Maloof-owned Sacramento Kings and the Chicago Bulls. Reid and her father dined at Lavo (Palazzo) on Tuesday. Reid, fresh out of rehab, was drinking Pepsi. ... Upstairs, at Lavo's nightclub, San Diego Charger Shawne Merriman and Stephon Marbury of the New York Knicks attended the Nylon magazine party. Marbury compared astrological notes with his cocktail waitress regarding their shared sign of Pisces. ... Charlie Sheen, at the MAGIC convention and show on Tuesday, to debut his new clothing line, the bowling shirt he wears on his hit CBS show "Two and Half Men." He later flew home to join his wife, Brooke, who is expecting twin boys any time. ... Audrina Patridge, from the hit TV series "The Hills," is in Vegas for the MAGIC show and convention. She's attending the POOL tradeshow for her denim brand, Divine Rights of Denim. She was to host a cocktail event Wednesday night for Fila at The Bank (Bellagio) and has appearances at Cristophe Salon. ... "Candy Girls," the new E! reality show, filming at the Palms the last couple of days. They were shooting in the Hot Pink suite and Rain nightclub and will be filming at Simon at Palms Place tonight with chef Kerry Simon. ... "American Idol" contestant Katrina "Bikini Girl" Darrell, filming a segment for "Extra" on Hawaiian Tropic Zone's strip-side patio. ... At N9NE Steakhouse (Palms) on Tuesday: Blink 182 drummer Travis Barker, with wife Shanna Moakler, Dwight Freeney of the Indianapolis Colts and reality show star Rob Dyrdek. Barker was seen later partying at Rain with Benji Madden of Good Charlotte and Javon Walker of the Oakland Raiders. Also at Rain: rappers E-40 and Common.

THE PUNCH LINE

"Even (Donald) Trump is losing money. His casino in Atlantic City is going bankrupt. I am worried about Atlantic City. With casinos going bankrupt, I'm worried things there could get a little seedy." -- Craig Ferguson

Norm Clarke can be reached at (702) 383-0244 or norm@reviewjournal.com. Find additional sightings and more online at www.normclarke.com.

MOST READ
Don't miss the big stories. Like us on Facebook.
THE LATEST
MORE STORIES