CHICAGO (AP) – A prominent Chicago-area strip club owner who kept a stash of $12 million in cash stuffed in warehouse boxes and bags pleaded guilty on Friday to federal tax charges.
Michael Wellek, 63, of Libertyville, did not pay personal income taxes from 1989 through 1999, even though his clubs apparently generated hefty profits, prosecutors said.
Standing in a Chicago courtroom, his hands folded in front of him, Wellek pleaded guilty to failing to file a tax return for 2000 and to obstructing the Internal Revenue Service.
Wellek, who owns three widely advertised strip clubs – Heavenly Bodies in Elk Grove Village, Cowboys in Markham and Skybox in Harvey – fought the allegations for years.
But when Judge Joan Lefkow asked Wellek on Friday to describe his crimes in his own words, he responded, “Whatever charges they wrote up, ... I’m taking responsibility for.”
Judge Lefkow could sentence Wellek to up to 6 years in prison, though she is likely to impose a reduced term. She set a Feb. 4 sentencing date.
IRS agents seized the $12 million from a warehouse near one club in 2003. Wellek promptly sued the government in a failed bid to get it back, arguing violations of his rights.
Wellek argued in the 2004 lawsuit he merely set aside the bills in boxes and bags until he could count it. The intention, he insisted at the time, was to then deposit it in banks.
Prosecutors highlighted the gap between what Wellek actually made and what he claimed.
Skybox and Cowboys, for instance, generated around $2 million for Wellek in 2000, but he reported making only around $115,000, prosecutors said.