Ex-strip club owner sentenced to prison for tax evasion

Categories: Crime

Larry Kladek can't go to prison. He's got chores to do, crab apple trees to prune, Hmongs to employ.

Thus was the case he made in a letter sent to a federal judge on the night before his sentencing. There's nothing to suggest he was joking.


The judge, however, remained unmoved and sentenced former owner of King of Diamonds gentlemen's club in Inver Grove Heights to 20 months in prison for tax evasion. Kladek had set up an ATM in his strip club in such a way that it hid from feds the amount of taxable cash that flowed from its coffers.

From the PiPress:

When Schiltz gave him a chance to speak before sentencing, Kladek said he had a "deep, sincere sorrow" and was truly remorseful. But he also said he wanted to avoid going to prison. "I would like to do the community service for the Hmong people," he said.

Papers his lawyer filed claimed that Kladek works 40 to 50 hours a week on the land and that as many as 60 Hmong families "directly benefit from Mr. Kladek's work."

But Assistant U.S. Attorney David MacLaughlin said, "He stole almost a million bucks from the national purse."

Wait. Not to condone tax evasion--dude clearly broke the law here--but MacLaughlin has it backwards. The taxable dough, whether you (or anyone) like it or not, was the result of Kladek's doings and, as such, belongs to him by all natural rights. Obviously, natural rights are pie-in-the-sky nonsense as far as goon-backed casino-rakes like the IRS are concerned, but we don't have to kid ourselves-- Kladek didn't "steal" from the national purse. He witheld from the national purse.

Anyway, enough silly semantics. Read the full story here.


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