Verboten has reportedly been closed by the New York state government after “nonpayment of taxes”.
Photographs of a sign on the club’s door warning that the property has been seized by authorities have been circulating on Twitter since Wednesday (30th March), reports RA.
Verboten done for real. Signs on the property pic.twitter.com/faLYcooCs9— Dance Bitch LLC (@DanceBitchBK) March 31, 2016
Verboten has not made an official statement at the time of writing. DJ Mag has reached out to the club for comment.
Earlier this year, it emerged that a group of investors in the Brooklyn nightclub accused its operating partners — Jen Schiffer and her husband John Perez — of fraud and mismanagement.
A letter from one of the investors, Darrin Morda, obtained by THUMP, alleges that Schiffer and Perez engaged in fraudulent activity and failed to pay State Sales Taxes.
It claims that the co-founders have: "[Concealed] revenues equaling hundreds of thousands of dollars… by rerouting deposits from Resident Advisor away from the club and into other accounts they own; withdrawn nearly $400,000 to fund events at other venues and making fraudulent entries in Verboten's ledger to make it appear as though these expenditures were related to the club's operations; charged the club for personal expenses, including their apartment rent and vacations; failing to pay State Sales Taxes; and fail to pay withholding taxes for foreign DJs, among others.”
Schiffer "vehemently denies" all charges of wrongdoing brought against her and Perez. "Not only are [these accusations] untrue, they also contain intentionally misleading information—it's both libel and slander," she told THUMP.
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