There’s a reason why the nightlife industry is so appealing for entrepreneurs: It’s mostly a cash business, making things like “revenues” easier to hide. But not easy enough, apparently, for Michael Weiss, the Philadelphia owner of a slew of venues who’s facing charges of hiding income.
Weiss, whose properties include the gay bar Woody’s (part of Chelsea Clinton’s gay bar crawl), and whose family is a regular contributor to charitable causes, faces nine years in prison and a $750k fine if convicted on charges of under-reporting income from Palmer Social Club, which is reportedly open only six hours a week (Saturday and Sunday, 12am-3am) — making the situation all the more bizarre.
In its indictment, prosecutors claim the Palmer Social Club — registered as a non-profit(!) — took in “approximately $1,411,373.55” in 2004 but reported just $528,228 in income (a $883,145.55 difference, relays Edge). And in 2005, Palmer allegedly took in $1,411,390.03, but knocked off $768,981.03 and reported just $641,409.
How a business owner manages to get his bar registered as tax-exempt is the work of a crafty CPA. And one that’s open just 312 hours a week that’s able to take in the lower $641k figure means Palmer collected $2,054 an hour (or, says the government, $4,523). Good deal.
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Kevin
Woody’s has been trashy for years. It’s over priced and dirty. I’m not at all surprised the owner would be involved in some slimy financial stuff. I’ve never even heard of this Palmer Social Club but I’m pretty sure its not a gay club. Michael Weiss is involved with several clubs and bars in Philadelphia, most of which are not LGBT. If he’s guilty, fine him and lock him up.
brandon
“…And one that’s open just 312 hours a week…”
I may not be a CPA but I do have the sense to know there are only 168 hours in a week….am I wrong!?!
hyhybt
@brandon: That’s how they’re bringing in all that extra money.
scott
That should be 312 per year. doesn’t matter. The Palmer is rented out for parties and special events all the rest of the time other than 12-3. The irs estimate is probably even low. Get all the info before trying to be funny …
Randall
When did Woody stop owning Woody’s? I haven’t been to Philadelphia in years but it surprises me if Woody no longer owns it. He practically built that place with his bare hands.
Ted B. (Charging Rhino)
If I remember from years ago…the Palmer is chartered as a “after-hours club”…a Pennsylvania liquor law provision that allows a membership club or social halls to be open til 4-am, when regular bars are open til 2am. Pennsylvania has a slew of odd-ball “club”, restaurant and bar licenses that determine when you’re open, what days and whether you can have dancing, or a live band, etc….whether you can be open on a Sunday…if you can serve food…or sell “package beer” to take home.
Lots of these licenses have been grandfathered, morphed into commercial clubs, or been fronted as other venues. Some of these are legally union halls, volunteer fire departments, VFW or American Legion posts, social clubs and fraternal leagues like the Knights of Columbus, Hibernians, etc….
narskie
Me and my buddy have finally filed a complaint with the FBI against the Weiss crime family. They are clearly the modern version of organized crime here in Philadelphia. Please email us with your contact info if you have even the most remote evidence of their crimes.