Strippers and waitresses at Manhattan's VIP club claim that managers of the gentleman's club stole over $300,000 in tips to settle gambling debts and drugs.
Sixteen current and former workers are suing the managers and owners of the clubs in federal court for fraud.
Strippers and waitresses at Manhattan's VIP club are laying bare the seedy side of their bosses in court, claiming that managers John Vargo and Steve Asland robbed them of more than $300,000 in tips to buy drugs and settle gambling debts.
The theft of tips began to occur frequently about a year ago "due in part to club mismanagement and the notorious drug abuse and gambling habits of defendant John Vargo," the complaint, filed last week, says.
According to the complaint the employees, some of whom claim they are owed up to $50,000, were told by Vargo and Asland that the money was gone, but the club would pay them back later.
Last August, after owner Frank Marchello's death, his estate sold the club to Michael and Glen Orrechio, who were aware of the stolen money, but allegedly told the workers it wasn't their problem.
For a related story, click here.
