Las Vegas
Tourist files lawsuit against cabbie kickbacks
A southern California tourist has filed a class action racketeering lawsuit against local taxi and limo companies and several strip clubs.
The I-Team has done several investigations into kickbacks of up to $100 that strip clubs pay to limo and taxi drivers who bring in customers.
The lawsuit alleges the cabbies and strip clubs are working together in a $40 million a year extortion scheme. In essence, the tourist claims some drivers illegally divert customers to clubs that pay more, sometimes against the passengers' wishes.
The lawsuit quotes I-Team reports in which cab drivers reveal how the process works.
The man who filed the suit claims he was trying to go to the strip club Play It Again Sam's, but the cab driver repeatedly lied about the club and instead took him to Spearmint Rhino.
The suit alleges that club paid him more.
Comments
Diversion is illegal and drivers who do it are breaking company policy and know they are breaking the law. Suggesting to a guy who is on his way to his hotel room that he could go to a strip club if he wanted to, and then telling about a good club to go to, and then taking him there IF HE REQUESTS it is not diversion or extortion, but is good service. That is why clubs pay money to drivers to get business. The kickback makes it possible for the driver to pay the cover charge for the customer, if the driver wants to (I don't - I don't make enough to give away anything). Many people get into taxis and ask the driver for recommendations on places to go. Recommending places when asked is not diversion or extortion, but good service. Smart clubs pay drivers to send them business, and as a result they have more customers that pay their entertainers, and more customers paying the entertainers makes it possible for them to hire more and better entertainers. ECONOMICS 101. Clubs who cannot figure out how to use drivers in Las Vegas to get willing satisfied grateful customers to their clubs, and how to get lots of entertainers and the best entertainers, are stupid clubs and don't understand the Las Vegas economy, and that is why they are whining and complaining. Boo hoo. The clubs that pay drivers to get them business have the most business and the most entertainers and the best employees and have money to fix up their clubs and have good security. In other words, they have what customers want. There are places not in the lawsuit that pay more money to drivers and are seedy and shady. Go to the listed defendants and enjoy.
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