City Desk

Ex-Club Owner Found Guilty Of Tax Evasion

Today, Abdul Karim Khanu was found guilty in federal court of tax evasion. Khanu, 42, had been a prominent nightclub owner. At one point, he operated DC Live, Platinum, and H2O. Now, he is facing a maximum of 10 year prison term.

According to a press release from the U.S. Attorney's Office:

"Khanu owned and operated two nightclubs on F Street in the District, named DC Live (and later VIP) and Platinum, from at least 2000 through 2003. Khanu skimmed millions of dollars in cash from these clubs to pay employees wages in cash, and for his personal use."

When law enforcement raided Khanu's Potomac home, they found $1.9 million in cash as well as "a double set of books and records."

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  • Rick Mangus

    I will give it until mid 2011 that you all be reading about the criminal,David J. Butler AKA 'Men's Parties' being charged for tax evasion, you can count on that!

  • jf1

    ...kinda sucks to do something as simple and successful as run parties in an abandoned warehouse downtown, make a ton of money, and within a few years end up owing the government 25% of the gross for each of those years.

    I can't imagine how many people have found themselves in the same situation.

    The difference between success and failure is a simple matter of not paying the tax? Somehow that doesn't sound right. Sounds more like "institutionalized blackmail" to me.

  • Wino

    I don't know about "institutionalized blackmail" but there is the small matter of all the sales tax collected and then put right into his pocket. Sounds more like "institutionalized larceny" to me.

  • bow tie mofo no. 2

    jeez, pay some taxes, won't kill ya.

  • Typical DC BS

    jf1, I wish I could get away with only paying Uncle Sam 25% of my paycheck as taxes! He should have been in the 40% plus tax bracket if he was making all that cash, between DC government and the feds.

  • Truth Hurts

    Some of that money ($1,500) went to Vince Gray's city counsel chair campaign. Should Gray keep it?

  • http://DCGOINGOUT Maria T

    Marc Barnes does not own anything in DC…The group of 3 promoters in DC are pretending that they are club owners.. His Partners are Masoud (”Lima” on K street , NW) and Mohamed Hamdan (”The Reserve ” on L street, NW and “Layla” in NE)…Mark does not own “Love”… Michael Jordan , the basketball player owns 80%of "LOVE" with 4 million dollars initial investment in 2001, 20 % of "LOVE" is owned by group of ethiopian investors at amount of 1 million in 2001.
    According to ABRA "LOVE" is shot down forever (Jan. 20.2010), until the venue change and find new GM, which Marc Barnes was, not an owner.
    Mark Barnes does not own “The Park” on 14th street, NW. According to "The Park's" Landlord the rent is $50,000 a month and is paid by Kuwait investor.
    There are “reserved” tables rented at all those establishments for $2,000 a table with liquor and prostitutes. They liked the tables name so much they named the latest establishment at 1426 L Street, NW ” The Reserve”. There is sex in the bathrooms in all their establishments, especially at “The Park”, right in front of club security while they look the other way. Police is outthere but they do not stop pimps and hookers from mixing with the regular crowd. At “Lima” drug dealers are moving freely right in front of the uniform police and entering and exiting the tent while police is looking the other way. Mark Barnes is still in the business because he is always supported by the lawyer of previous mayor Toni Williams, therefore he is not only a straw man for the Kuwait interests , but also for DC Government interests, he pays $240,000 a year to selected uniform police officers according to his own comments, dated back as "The RepubliC Gardens". His fate maybe the same as Abdul Khanu from “H2O”, “Platinum”, “VIP”, if he continues to pretend he owns anything in DC…
    Mohamed Hamdan’s partner in “The Reserve” breads fighting dogs and owns gas stations in Fredericks, VA....
    Masoud’s investor in “LIMA” is a doctor, no wander drugs are ok to sale there… hey it is only in the tent. lol

  • http://DCGOINGOUT Maria T

    Abdul was raided twice in 6 years..once in Potomac, second in Bowie... Feds stole 1,1 Million dollars from him. They found 3 million at his home and 1 Million at his club. They say he did not declare 1,9 Million...where is the rest of the money, feds? I think they reenacted the movie "Training Day" with Denzel Washington. If nobody around, who is counting? 10 years in jail for tax evasion? Wesley Snipes got 3years for refusing to pay 14 million, based on that his movies were made abroad... check your tax codes IRS.!!. Also,it is nothing wrong paying cash to anyone working in the club, as long they are 1099 subcontractors. What is wrong with Abdul's accountant, if he had one? The only thing is one businessman has to keep true records of that, Abdul does not pay at this case payroll tax, the 1099ers pay that .