A lot of people saw it coming.
Rumors have been flying for more than a year that the high-flying, cash-laden nightclub scene was being scrutinized by the feds.
The shoe dropped Wednesday when the Internal Revenue Service and other law enforcement authorities raided Pure nightclub and Pure Management Group headquarters, confiscating a number of computers.
Cash-heavy operations are known to get the attention of the IRS.
<!-- startclickprintexclude --><TABLE class=story_ad_250 width=275 align=right><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD bgColor=#999999 colSpan=3>
</TD></TR><TR><TD bgColor=#999999>
</TD><TD><!-- AD SPOT: Tile Banner --><SCRIPT language=JavaScript1.1 src="http://ads.stephensmedia.com/js.ng/size=250x250&channel=news"></SCRIPT><!-- Sniffer Code for Flash version=40 --><SCRIPT language=VBScript> on error resume next ShockMode = ( IsObject(CreateObject("ShockwaveFlash.ShockwaveFlash.4")))if ( ShockMode <= 0 ) then ShockMode = (IsObject(CreateObject("ShockwaveFlash.ShockwaveFlash.5")))if ( ShockMode <= 0 ) then ShockMode = (IsObject(CreateObject("ShockwaveFlash.ShockwaveFlash.6")))</SCRIPT><OBJECT id=flashad codeBase=http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=4,0,2,0 height=250 width=300 classid=clsid
27CDB6E-AE6D-11cf-96B8-444553540000>
<EMBED SRC="http://www.reviewjournal.com/ads/bluesky/ravingbrands/tourdays/300x250.swf?clickTag=http%3A//ads.stephensmedia.com/event.ng/Type%3Dclick%26FlightID%3D75018%26AdID%3D128734%26TargetID%3D2694%26Segments%3D2211%2C2237%26Targets%3D2694%2C2695%26Values%3D31%2C46%2C51%2C60%2C72%2C85%2C94%2C102%2C110%2C158%2C1395%2C1858%26RawValues%3D%26Redirect%3Dhttp%3A//www.ravingbrands.com/tour_days.aspx" QUALITY=autohigh NAME=flashad swLiveConnect=TRUE WIDTH=300 HEIGHT=250 TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></EMBED></OBJECT><NOEMBED></NOEMBED><NOSCRIPT></NOSCRIPT><NOSCRIPT></NOSCRIPT><!-- end AD SPOT: Banner -->
</TD><TD bgColor=#999999>
</TD><TD>
</TD></TR><TR><TD bgColor=#999999 colSpan=3>
</TD></TR></TBODY></TABLE>
<!--QUIGO--><SCRIPT type=text/javascript>adsonar_placementId=21160;adsonar_pid=167778;adsonar_ps=-1;adsonar_zw=250;adsonar_zh=250;adsonar_jv='ads.adsonar.com';</SCRIPT><SCRIPT language=Javascript src="http://js.adsonar.com/js/adsonar.js"></SCRIPT><FORM id=qas_frm name=qas_frm action="" method=get target=""><INPUT type=hidden name=ie52_mac_only></FORM><IFRAME id=adsonar_serve677565 name=adsonar_serve677565 marginWidth=0 marginHeight=0 src="http://ads.adsonar.com/adserving/getAds.jsp?previousPlacementIds=&placementId=21160&pid=167778&ps=-1&zw=250&zh=250&url=http%3A//www.lvrj.com/news/15834017.html&v=5&dct=ReviewJournal.com%20-%20News%20-ke%20a%20look%20at%20LV%20cash%20flow&ref=http%3A//drudgereport.com/" frameBorder=0 width=250 scrolling=no height=250></IFRAME><!--END QUIGO-->Most Popular Stories
<LI class=story_mp_link>NORM: Feds take a look at LV cash flow <LI class=story_mp_link>No major injuries in Monte Carlo fire <LI class=story_mp_link>MONTE CARLO FIRE: Thousands return for belongings <LI class=story_mp_link>MONTE CARLO FIRE FORCES OUT THOUSANDS <LI class=story_mp_link>'Heavy Hitter' swings, misses <LI class=story_mp_link>PALO VERDE HIGH SHOOTING: Family defends slaying suspect <LI class=story_mp_link>FATAL DRIVE-BY SHOOTING: Second arrest made <LI class=story_mp_link>Casino billionaires see their fortunes shrink <LI class=story_mp_link>PALO VERDE SHOOTING: 'I never thought this could happen here' <LI class=story_mp_link>BANKRUPTCY PROTECTION: Company files for Chapter 7
<!-- Multimedia Home Page Content --><TABLE id=table_01 height=26 cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD vAlign=top width="100%" colSpan=2>
</TD></TR><TR><TD vAlign=top width="100%" colSpan=2 height=15><SCRIPT src="http://img.video.ap.org/p/j/apovn.js " type=text/javascript></SCRIPT><OBJECT id=sm_vrt_3thumb_scroll height=175 width=180 classid=clsid27CDB6E-AE6D-11cf-96B8-444553540000>
</OBJECT>
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE><!-- endclickprintexclude --></P>Sources have been telling me that doormen at several clubs are clearing $8,000 to $10,000 a night before they share tips. So much cash is pouring in that some doormen are making $400,000 to $500,000 a year, several nightclub executives told me.
"Pure has guys at the door making more than the president," said one executive with intimate knowledge of the cover-charge system. He was referring to the annual salary of the president of the United States, which is $400,000, plus benefits.
A Pure executive told me over the weekend that 5,000 people showed up for Paris Hilton's 27th birthday party and her guest appearance with the Pussycat Dolls.
About six months ago, on a busy night at Pure, I overheard two men bitterly complaining about the cover charge. "They wanted $1,000 per person. I said the highest I'd go was $800!" one said.
It's not just Pure, the largest club in town with a capacity of 2,400. Grumbles about nightclub gouging have been growing louder.
In my nearly completed book "Vegas Confidential: Sinsational Celebrity Tales," I write: "It's no secret that most clubs understand that the longer the line the higher the anxiety. That's where the 'line slide' comes in.
"If people have been waiting all night, they're not going to go somewhere else and start over," said a club exec (not at Pure).
"Club employees, usually the size of big league umpires, will go down the line and fish for people who really want to get in. The line guy might get $200, but now everyone in the group is still going to have to pay a $30 to $40 cover charge. Sometimes, the doorman demands more, maybe $50 to $100 per person."
Then there's bottle service, which means you have to buy a bottle to sit in the VIP section. The usual requirement is one bottle per three patrons. Two-bottle minimums are not uncommon. Bottles at most clubs are going for $350 to $650 a piece.
Rumors have been flying for more than a year that the high-flying, cash-laden nightclub scene was being scrutinized by the feds.
The shoe dropped Wednesday when the Internal Revenue Service and other law enforcement authorities raided Pure nightclub and Pure Management Group headquarters, confiscating a number of computers.
Cash-heavy operations are known to get the attention of the IRS.
<!-- startclickprintexclude --><TABLE class=story_ad_250 width=275 align=right><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD bgColor=#999999 colSpan=3>
27CDB6E-AE6D-11cf-96B8-444553540000><EMBED SRC="http://www.reviewjournal.com/ads/bluesky/ravingbrands/tourdays/300x250.swf?clickTag=http%3A//ads.stephensmedia.com/event.ng/Type%3Dclick%26FlightID%3D75018%26AdID%3D128734%26TargetID%3D2694%26Segments%3D2211%2C2237%26Targets%3D2694%2C2695%26Values%3D31%2C46%2C51%2C60%2C72%2C85%2C94%2C102%2C110%2C158%2C1395%2C1858%26RawValues%3D%26Redirect%3Dhttp%3A//www.ravingbrands.com/tour_days.aspx" QUALITY=autohigh NAME=flashad swLiveConnect=TRUE WIDTH=300 HEIGHT=250 TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></EMBED></OBJECT><NOEMBED></NOEMBED><NOSCRIPT></NOSCRIPT><NOSCRIPT></NOSCRIPT><!-- end AD SPOT: Banner -->
</TD><TD bgColor=#999999>
<!--QUIGO--><SCRIPT type=text/javascript>adsonar_placementId=21160;adsonar_pid=167778;adsonar_ps=-1;adsonar_zw=250;adsonar_zh=250;adsonar_jv='ads.adsonar.com';</SCRIPT><SCRIPT language=Javascript src="http://js.adsonar.com/js/adsonar.js"></SCRIPT><FORM id=qas_frm name=qas_frm action="" method=get target=""><INPUT type=hidden name=ie52_mac_only></FORM><IFRAME id=adsonar_serve677565 name=adsonar_serve677565 marginWidth=0 marginHeight=0 src="http://ads.adsonar.com/adserving/getAds.jsp?previousPlacementIds=&placementId=21160&pid=167778&ps=-1&zw=250&zh=250&url=http%3A//www.lvrj.com/news/15834017.html&v=5&dct=ReviewJournal.com%20-%20News%20-ke%20a%20look%20at%20LV%20cash%20flow&ref=http%3A//drudgereport.com/" frameBorder=0 width=250 scrolling=no height=250></IFRAME><!--END QUIGO-->Most Popular Stories
<LI class=story_mp_link>NORM: Feds take a look at LV cash flow <LI class=story_mp_link>No major injuries in Monte Carlo fire <LI class=story_mp_link>MONTE CARLO FIRE: Thousands return for belongings <LI class=story_mp_link>MONTE CARLO FIRE FORCES OUT THOUSANDS <LI class=story_mp_link>'Heavy Hitter' swings, misses <LI class=story_mp_link>PALO VERDE HIGH SHOOTING: Family defends slaying suspect <LI class=story_mp_link>FATAL DRIVE-BY SHOOTING: Second arrest made <LI class=story_mp_link>Casino billionaires see their fortunes shrink <LI class=story_mp_link>PALO VERDE SHOOTING: 'I never thought this could happen here' <LI class=story_mp_link>BANKRUPTCY PROTECTION: Company files for Chapter 7
<!-- Multimedia Home Page Content --><TABLE id=table_01 height=26 cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD vAlign=top width="100%" colSpan=2>
</TD></TR><TR><TD vAlign=top width="100%" colSpan=2 height=15><SCRIPT src="http://img.video.ap.org/p/j/apovn.js " type=text/javascript></SCRIPT><OBJECT id=sm_vrt_3thumb_scroll height=175 width=180 classid=clsid
27CDB6E-AE6D-11cf-96B8-444553540000></OBJECT>
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE><!-- endclickprintexclude --></P>Sources have been telling me that doormen at several clubs are clearing $8,000 to $10,000 a night before they share tips. So much cash is pouring in that some doormen are making $400,000 to $500,000 a year, several nightclub executives told me.
"Pure has guys at the door making more than the president," said one executive with intimate knowledge of the cover-charge system. He was referring to the annual salary of the president of the United States, which is $400,000, plus benefits.
A Pure executive told me over the weekend that 5,000 people showed up for Paris Hilton's 27th birthday party and her guest appearance with the Pussycat Dolls.
About six months ago, on a busy night at Pure, I overheard two men bitterly complaining about the cover charge. "They wanted $1,000 per person. I said the highest I'd go was $800!" one said.
It's not just Pure, the largest club in town with a capacity of 2,400. Grumbles about nightclub gouging have been growing louder.
In my nearly completed book "Vegas Confidential: Sinsational Celebrity Tales," I write: "It's no secret that most clubs understand that the longer the line the higher the anxiety. That's where the 'line slide' comes in.
"If people have been waiting all night, they're not going to go somewhere else and start over," said a club exec (not at Pure).
"Club employees, usually the size of big league umpires, will go down the line and fish for people who really want to get in. The line guy might get $200, but now everyone in the group is still going to have to pay a $30 to $40 cover charge. Sometimes, the doorman demands more, maybe $50 to $100 per person."
Then there's bottle service, which means you have to buy a bottle to sit in the VIP section. The usual requirement is one bottle per three patrons. Two-bottle minimums are not uncommon. Bottles at most clubs are going for $350 to $650 a piece.
