The IRS Was Closing In On Them
Rubell and Schrager were arrested for non-licensed alcohol selling! The club was closed until further notice. Luckily, they had a great lawyer called Roy Cohn. He got them out of prison and obtained a liquor license for the club.
The IRS Was Closing In On Them
He was the lawyer of Sen. McCarthy and even Pres. Trump in the past. The two men felt invincible after this, but there were more problems. This time, it was the IRS that came after them.
Cher And Howard Himelstein Bust A Move
It took two dozen agents to look into the club’s finances. They heard that the owners were skimming money and keeping drugs. In the end, these claims were verified. They saw a vault with drugs and unreported cash.
Cher And Howard Himelstein Bust A Move
There was $2.5 million that went unreported! They went to prison for fraud. When Studio 54 closed down, it also marked the end of disco. When the owners got out of jail, they landed on their feet again. Before they said goodbye, they held one final party in February 1980.
