Tax Attorney Charged in Prostitution Case

The Manhattan district attorney's office on Thursday announced the indictment of a New York tax lawyer for allegedly promoting prostitution.

Louis Posner, a solo practitioner, was arrested in a July raid of the Hot Lap Dance Club on West 38th Street in Manhattan. Prosecutors claim Posner, 52, and his wife Betty, 57, ran an unlicensed strip club at which dancers also offered to have paid sex with customers, including undercover police officers.

The Posners also allegedly falsified business records and used sham corporations to cover up their illegal activities.

According to the indictment, the club made more than $726,000 in the first six months of 2008 and often made over $20,000 a night.

Mr. Posner is facing one count of promoting prostitution along with multiple counts of money laundering and falsifying business records.

Mrs. Posner is charged with falsifying business records.

The money-laundering charges are punishable by up to 15 years in prison each while the prostitution promotion charge carries a maximum term of seven years.

The Posners both pleaded not guilty Thursday and were released on their own recognizance. They are represented by Lee A. Ginsberg of Freeman, Nooter & Ginsberg.