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Home > Blogs > Dayton Courts: Legal and crime news > Archives > 2009 > March > 24 > Entry
Cheeks Gentleman’s Club owner convicted of tax charges
DAYTON — The owner of Cheeks Gentleman’s Club was convicted Tuesday, March 24, of three counts of filing a false corporate income tax return.
The trial of Elbert Lee Hale and his ex-wife Joyce Hale started March 16. The jury got the case on Monday, March 23.
Elbert Hale, who lives in Washington Twp., was convicted of three counts concerning the 2002, 2003 and 2004 income tax years. The jury acquitted Hale of 23 counts of structuring financial transactions.
Joyce Hale, of Dayton was found guilty on one count of making a false statement to federal investigators. The jury acquitted her of a second count of the same charge.
Elbert Hale has owned and operated Cheeks Gentlemen’s Club, 906 Watertower Lane, West Carrollton, since 1998. Evidence presented at trial showed that Hale intentionally understated the club’s business income on corporate income tax returns for the period spanning 2002 through 2004, according to Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio.
The counts involving structuring financial transactions dealt with 23 occasions between July 2006 and January 2008, when Elbert Hale deposited more than $10,000 cash into company accounts, but broke the deposits into smaller amounts to evade federal cash transaction reporting requirements, according to the indictment.
Joyce Hale was charged with telling investigators in May 2006 that she did not know about the club’s financial information. She told them she was unaware of how income generated by female dancers was accounted for and did not know of any accounting books or ledgers for the club, according to the indictment.
Federal investigators testified that they seized a secret set of accounting books from the trunk of Joyce Hale’s car while executing search warrants at Cheeks on May 12, 2006. Prior to seizing the records Mrs. Hale denied to Federal agents having any knowledge of the existence of such books. This second set of books, penned in Joyce Hale’s handwriting, documented an under-reporting of business income of more than $3.1 million in the three-year period, Lockhart said.
“The government called 17 witnesses to testify during the trial, including two former dancers and a business partner of Hale’s,” Lockhart said. “As a result of their testimony and the evidence presented, a conviction was obtained.”
Each of the three counts of filing false corporate income tax returns is punishable by three years imprisonment, a $100,000 fine, restitution of unpaid taxes along with interest and penalties to be calculated by the IRS. Making false statements is punishable by up to five years imprisonment.
Chief U.S. District Judge Susan J. Dlott will schedule a sentencing hearing.
Permalink | Comments (34) | Post your comment |
Comments
By Proof Reader
March 24, 2009 1:34 PM | Link to this
Hey Grieco, Proof read you story. Also what court was this in? Please state this outright. It’s a basis detail. Over all good reporting. Rewrite and turn-in in two hours. Your grade: C-By spice
March 24, 2009 1:34 PM | Link to this
that Spice is a cuteyBy REAL Proof Reader
March 24, 2009 1:46 PM | Link to this
He Proof Reader, proof read your comments. It’s “your”, not “you” (1st sentence, 5th word), “basic” not “basis” (4th sentence, 3rd word), “Overall” not “Over all” (5th sentence, 1st and 2nd words). Debatable on “turn-in” versus “turn in” (no points deducted). I do agree on the need to mention the court in the original article. Your comment grade: D- due to claims of grammar authority containing errors.By KristheNurse
March 24, 2009 1:56 PM | Link to this
WOW…doesn’t that make the Hale’s eligible to be working for Obama?? Maybe he should consider hiring them!! hahaBy Kay
March 24, 2009 1:57 PM | Link to this
Kudos to Real Proof Reader…hilarious.By bobby
March 24, 2009 2:17 PM | Link to this
Two sets of books at a t#$$y bar? Brilliant! This is probably the first time this has ever been done.By flipper
March 24, 2009 2:21 PM | Link to this
Have you ever heard of an honest strip club owner? I haven’t. It’s just not an up-and-up sort of business, I guess. How’s my grammar you proofies?By teacher
March 24, 2009 2:25 PM | Link to this
To Kristhenurse: These people aren’t nearly crooked enough to work for Osama Obama.By shannon
March 24, 2009 2:37 PM | Link to this
i hope every last one of you that use obama as an excuse to talk a bunch of crap gets what’s coming to you. you sit on your pc just waiting to be oh so clever with your osama obama references. it’s old. grow the hell up and support your country, you backbiting, angry and uninformed morons.By connie
March 24, 2009 2:41 PM | Link to this
HEY SHANNON I BET YOU DIDN’T BACK BUSH SO YOU SHUT THE HECK UP.By Derwood
March 24, 2009 2:44 PM | Link to this
Shannon, I bet you thought the chimpy/shrub/dubya jokes for the past 8 years were funny, right? What goes around comes around.By shannon
March 24, 2009 2:48 PM | Link to this
um, actually no, i didn’t. i think it’s a shame when anyone who is an american is disgraceful towards any of our presidents. no one said it was an easy job, but it really seems as if obama has nothing to do with this story. it gets old. and as for george, do you remember the past 8 years? where the heck have you been? next.By shannon
March 24, 2009 2:49 PM | Link to this
WRITTING IN ALL CAPS MEANS NOTHING TO ME. NOR DOES IT MAKE IT ANYMORE TRUE.By Chris
March 24, 2009 2:54 PM | Link to this
Lazy people type in all caps.By null
March 24, 2009 2:59 PM | Link to this
Read much??? The article say “US Atty Greg Lockhart for Southern District Ohio and Cheif US District Judge Susan Dlott. Gee I guess that means it was in Fed Court here in Dayton.By B Gates
March 24, 2009 3:10 PM | Link to this
Proof Reader should proof his comment. He is an idiot!By B Gates
March 24, 2009 3:12 PM | Link to this
As long as everyone is doing it - Did you vote for the Big O? Then hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha You are getting what you deserve. ID10T Error…By B Gates
March 24, 2009 3:13 PM | Link to this
As long as everyone is doing it - Did you vote for the Big O? Then hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha You are getting what you deserve. ID10T Error…By Average Joe
March 24, 2009 3:21 PM | Link to this
Hey Shannon, writing without capital letters at the begining of a sentence and spacing your words at the end is a lazy way to type anything. You’re not texting here.By William
March 24, 2009 3:54 PM | Link to this
What a surprising outcome….not. Yeah, this guy is a real genius. He could work for the treasury dept. I bet he sends his resume to Obama.By Matt
March 24, 2009 3:55 PM | Link to this
Is this story about how a business owner didn’t file his taxes or how poor of a job each one of you is doing at work. Obviously if you are commenting on this story over and over you are not doing your job.By stick to the subject
March 24, 2009 3:56 PM | Link to this
Proof Reader - You might want to consider, at the very least, a GED. What do any politicians of any stripe have to do with this story. I say good for the Feds. I don’t care what type of business you run or who you are. If you cheat, I hope you get caught and do the time.By teacher
March 24, 2009 4:31 PM | Link to this
Shannon - here’s a clue - spell checker. A wonderful tool for those of you who have more mouth than brains.By shannon
March 24, 2009 5:20 PM | Link to this
Teacher: You are a rude person. Please make your passive aggressive remarks to someone who actually cares about you or what you think.By stick to the subject
March 24, 2009 5:28 PM | Link to this
Hey Shannon - One word. Valium.By Carol
March 24, 2009 5:39 PM | Link to this
make sure you put in big letters “Projection Books” on top of any books you are working on before you remodel a business so the IRS won’t get confused and believe your small business with an occupancy of 119 makes the money you expect it to make in the future!!By President Obama
March 24, 2009 7:39 PM | Link to this
All you Republican morons can kiss my black a$$. Bucky Bush lost and you can’t handle it. I am going to turn over every piece of $hit legislation and executive order W and his cronies passed and their is nothing you can do about it. Bend over and take your medicine you bunch of right wingnuts. Ha Ha Ha! Where is Michelle? I am horny.By teacher
March 24, 2009 8:02 PM | Link to this
Shannon - “passive agressive” - talk about an oxymoron - but we can just consider the source. How many times did you vote for Osama?By Jim
March 24, 2009 9:15 PM | Link to this
The current head of the IRS under reported and faked his books, he was told to pay up and all was good. He didn’t even have to pay interest and penalties. One set of rules for the Obama circle and another for the rest of us. Typical of the dems to attack people for saying it, but it is true.By null
March 24, 2009 10:25 PM | Link to this
Teacher, come up with new comebacks. The ones you keep using are very lame. YawnBy bigburrrito0
March 24, 2009 10:37 PM | Link to this
I always wondered why they printed two copies of everything…I wonder if they will have a sale on lap dances?By COWBOY
March 24, 2009 11:05 PM | Link to this
big deal its his place , let him run it . just goes to show ya the gov. does’nt want anybody or buss. to make it at all !!!!!!!!By John F
March 26, 2009 12:14 AM | Link to this
Now where are all the Republicans going to go to have fun? Oh that’s right, they still have a restroom at the Minnesota airport… Paging Senator Craig!By Bob
April 10, 2009 8:08 AM | Link to this
I am kinda glad to see Obama in the white house know no one can say any thing about race. My opinion is the guy isinot fit to be the mayer of Dayton let alone run the country give him time and we all will see.