Famed nightclub Verboten in Williamsburg, Brooklyn was seized on the afternoon of March 30 by the Department of Taxation & Finance for failing to pay over $360,000 in taxes. Shortly after, the club filed for chapter 11 bankruptcy but was permitted to reopen.
Only one week later, NYPD confirmed the arrest of club owner Jen Schiffer on April 7 for writing $31,000 worth of fraudulent checks. Prior to the arrest investors accused Schiffer and her husband, John Perez, for mismanagement and fraud. Schiffer and Perez were already defendants in another suit for withholding wages, stealing employee tips and sexual harassment. Schiffer is currently being held in custody.
A letter surfaced indicating that 14 investors were taking legal action against the couple for hiding revenue, directing deposits to personal accounts, recording fraudulent expenditures and failing to pay taxes. The letter also claimed that several employees were being underpaid, and that the couple had overdue payroll.
Berlin producer DJ Lee Jones posed this question on his public Facebook, trying to get to the bottom of who else had been scammed or underpaid at this venue:
Artists Heidi and Matthias Meyer commented verifying that the club owed their labels significant amounts, while other artists and agents chimed in with their stories as well.
Currently, the club appears to still be open and running. It was actually named one of the 100 best clubs in the world by DJ Mag earlier this month.