THE INSIDE STORY ON THE IRS RAID OF PURE NIGHTCLUB
In an attempt to keep celebrity investors Celine Dion and Shaquille O’Neil from becoming involved with the IRS bust of their Pure nightclub at Caesars Palace yesterday, LUXE LIFE has learned exclusively that executives there are completely co-operating with federal agents.
“Everything has been completely honest and we have absolutely nothing to hide,” said one top level Pure insider.
Hollywood celebrities, who have made many “cash for hire” appearances to host parties at the nightclub, will also be under the scrutiny of IRS agents.
“Again, there will be full co-operation because we do not have to run. We do not have to hide. We are completely out in the open. Everything has been dealt with properly in full keeping and we have done nothing wrong at all. Everything is completely documented and all above board,” I was told.
Everybody from Paris Hilton, Pamela Anderson, Christina Aguilera, Tori Spelling and the casts of hit MTV and VH1 reality shows have been paid for club appearances in the competitive Vegas nightclub world.
“It’s all done with checks and all the W4 forms are in order and on file,” I was further told.
It’s believed that the IRS agents are looking more at what the club may know about “outside the club access tipping.” The feds have heard rumors about hundreds of thousands of dollars of undeclared income being involved from a practice known as “line-fishing,” where people on-line anxious to enter are willing to pay money to avoid waiting for hours.
LUXE LIFE has learned that the IRS agents also raided the homes of at least one member of the Pure management staff. Allegedly the feds seem to be very interested in recent purchases such as expensive cars, jewellery and other personal possessions. They are convinced that the outside the club tipping policy has involved kickbacks of some description, a reliable insider revealed.
LUXE LIFE has also learned that another major Vegas nightclub restaurant operator had video cameras installed 12-months ago and notified his front-door employees of the fact and had them “sign out” the cash tips each night for “full open disclosure reporting to the IRS.” Apparently this angered some employees who quit to go to other clubs where there were no legitimate spy-cameras.
“This is all about disgruntled ex-employees getting back at us. We know who it is and why. There is absolutely no truth behind the accusations. We will be cleared of any and all reckless complaints. We are totally clean,” I was told by a Pure insider late last night.
Pure nightclub owner-partners Robert Frey and Steve Davidovici were at home and still asleep when the feds busted the club and their Pure Management Group offices behind Circus Circus yesterday.
They immediately ordered “complete co-operation” with the agents who seized computers from both locations. Caesars Palace officials had no advance notification of the raid and executives arriving for their offices yesterday morning found the agents on guard outside the main club entrance. The IRS men refused to say how many agents were inside the club and how long they would be there.
As a precaution that IRS officials would prevent the club from opening for the first-night Bette Midler celebration party, Caesars officials booked a hotel ballroom to use as a safety measure. By mid-afternoon the IRS agents had whatever they thought they needed and gave a go-ahead for the club to reopen.
“We are open for business. We know the investigation will last a year, maybe more. But Pure and our other restaurants and nightclubs will be open as usual,” I was told. “We will do whatever is necessary to co-operate fully so that our reputation and names aren’t harmed and remain fully intact.”