Strip Club Owner Gets Jailtime for Cheating on Taxes

IRS said Michael Wellek didn't file returns for the $12 million they found in garbage bags

Friday, Feb 4, 2011  |  Updated 9:15 PM CDT
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A north suburban strip club owner who allegedly avoided taxes by hiding $12 million in cash in a warehouse was sentenced to a year in jail and six months of home confinement Friday.

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A north suburban strip club owner who allegedly avoided taxes by hiding $12 million in cash in a warehouse was sentenced to a year in jail and six months of home confinement Friday.

Michael G. Wellek, 63, of Libertyville, was sentenced to 18 months in jail for obstructing the IRS and filing a false income tax return, according to a release from the U.S. Attorney’s office.

Wellek was charged in a two-count criminal information filed in U.S. District Court in October 2010, and pleaded guilty last fall to one count of obstructing the IRS in the collection of taxes and one count of filing a false federal income tax return for 2000, according to an earlier release.

Wellek was the owner and operator of three "gentleman's" clubs: Heavenly Bodies in Elk Grove Village, Skybox in Harvey, and Cowboys in Markham.

Nearly eight years ago, IRS agents said they seized about $12 million in cash -- stored in garbage bags marked with the date and location where earned -- from a warehouse in Elk Grove Village where Wellek conducted business.

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