Offices of Pure nightclub targeted by IRS agents

Agents with the Internal Revenue Service raided the offices of nightclub operator Pure Management Group on Wednesday, but it was unclear what specifically the agency was investigating.

A source also confirmed that agents visited Pure nightclub at Caesars Palace.

The action came on the same day that Bette Midler opened her new show at the 4,100-seat Colosseum at Caesars Palace. A red carpet affair Wednesday night at Pure celebrating Midler's debut was not affected by the investigation.

"Pure Management Group is fully cooperating with this IRS investigation and looks forward to a quick and satisfactory resolution," a statement released by the company said. "Until that time, we will have no further comment on this matter."

Diana Nielsen, a spokeswoman for the IRS, declined to comment Wednesday other than to say that she was at 2121 Industrial Blvd., which is the headquarters for the Pure Management Group.

Bill Cassell, a spokesman for the Metropolitan Police Department, said he was unaware of any police officers being involved in the raids.

Pure Management Group owns some of the most popular venues in Las Vegas, including the Pussycat Dolls Lounge and Venus Pool Club at Caesars; Coyote Ugly in New York-New York; Fat Tuesdays in the Forum Shops at Caesars Palace; Tangerine Lounge & Nightclub at Treasure Island; and Social House at Treasure Island. The company's success has resulted in high-profile investors such as Andre Agassi and Steffi Graf, Shaquille O'Neal and Celine Dion.

"They have had a huge impact on the nightlife industry in Las Vegas," said Bryan Bass, who teaches a nightclub management class at University of Nevada, Las Vegas. "This is a pretty serious thing. It could have a long-lasting effect on the way that company does business."

Wading through the finances of a nightclub company could be complicated by the nature of the business, Bass said.

Ownership is complex, and business structures can vary depending on the resort property where a club is located.

"Then they need to go out and raise money, so there are investors," Bass said.

News of the government's interest in Pure is reverberating through a scene that in a few short years blossomed from a Las Vegas sideshow to an industry worth hundreds of millions of dollars in revenue. Last year Pure in Caesars Palace was named the number one night spot in the country by E! Entertainment channel.

"It is certainly the biggest nightclub issue to date," Bass said.

Review-Journal reporter Benjamin Spillman contributed to this report. Contact reporter Adrienne Packer at apacker@reviewjournal.com or (702) 384-8710.