UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ----------------------------------------------------------------------- x BETTY POSNER, Plaintiff, -againstTHE CITY OF NEW

YORK, SERGEANT CHRISTOPHER KOCH, Shield # 2875,LIEUTENANT COSTELLO, CAPTAIN STEVEN BRAILLE, POLICE CHIEF BRIAN CONROY, SGT. McATEER, POLICE DETECTIVE LISA P ASKEWITZ, Shield # 5865, UNDERCOVER POLICE OFFICER # 2948 (previously # 4325); UNDERCOVER POLICE OFFICER # 3026 (Previously # 2015), POLICE OFFICER VINCENT KONG, UNDERCOVER POLICE OFFICER # 506, UNDERCOVER POLICE OFFICER # 5732, UNDERCOVER POLICE OFFICER # 5372, and POLICE OFFICERS JOHN DOES # 1-10 (names and number of whom are unknown at present, and other unidentified members of the New York City Police Department), Defendants. AFFIDAVIT OF STEVEN ASLAN IN OPPOSITION TO DEFENDANTS' MOTION FOR SUMMARY JUDGMENT 11 CV 4859 (JMF)

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STATEOFNEWYORK COUNTY OF NEW YORK ) ) SS: )

STEVEN ASLAN, being duly sworn, deposes and says:

1.

My date of birth is October 7, 1960, and I am a 52 year-old man. I presently reside in New York City. I hold an undergraduate degree from New York University. I graduated from the NYU Stem School of Business in May, 1982 with an

2. 3. 4.

MBA in finance. 5. Upon graduation from the Stern School of Business, I continued working for the

investment banking firm of Dillon Read & Co. on Wall Street in Manhattan and later as a financial analyst at Citicorp for over nine years. 6. I left each of my jobs in the financial services sector in good standing and was

not disciplined at those jobs, nor was I fired from those jobs. 7. I do not have a criminal record, nor have I ever been convicted of a crime.

BACKGROUND IN GENTLEMEN'S CLUB INDUSTRY

8.

For the past 18 years, I have 'been employed in the gentlemen's club industry,

and am extremely familiar with the manner in which gentlemen's clubs throughout New York City are run. 9. My first job in the gentlemen's club industry was at Butterfly's presents Pure

Platinum, located at 20 West 39 th Street in Manhattan, where I worked from 1994 to 1996, and my job title was consultant. 10. My job responsibilities at Butterfly's Pure Platinum were managing of

entertainers, DJ's and entertainment. 11. I was the President and owner of the management company that operated the

VIP Club, an established Manhattan gentlemen's club previously known as Silverado's, located at 20 West 20th Street, from 1996 until 2002 when the owner died and his estate sold the club. 12. My job responsibilities at the VIP Club were managing the entire club, including

dancers, staff and back office operations.

13.

I worked for Casanova Gold, a gentlemen's club in New Rochelle, New York

from 2005 to 2006, when ownership decided to close it and sell the building where it was located. 14. I was hired as a consultant for Rick's Cabaret in Manhattan, located at 50 West

33 rd Street, from 2006, shortly after it opened, until February,2008. 15. Rick's Cabaret in Manhattan is a gentlemen's club that is part of a chain of

gentlemen's clubs located throughout the country, which are public ally traded on the NASDAQ exchange. 16. My responsibilities at Rick's Cabaret in Manhattan were to help manage the

club's day operations, including supervising staff and dancers, to build up its daytime business, and to set up systems for inventory controls and other back office operations. 17. I am presently employed as a consultant at a well-established gentlemen'S club

in New York City 18. My job responsibilities at my current club are helping to manage the club

during day hours, including supervising staff and dancers and advising on social media and other forms of marketing. 19. As part of my job responsibilities at each of these gentlemen's clubs, I also

visited other gentlemen's clubs throughout the City of New York to keep abreast ofthe services and amenities offered at these other clubs. 20. In total, I have visited and met with management of dozens of gentlemen's

clubs throughout the country. 21. Further, as part of my job responsibilities working at gentlemen's clubs, I have

met with the managers of other gentlemen's clubs throughout the City and discussed, among other things, the problems gentlemen's clubs are presented with when trying to ensure that prostitution and drugs do not occur at the clubs. 22.

It is common knowledge in the gentlemen's club industry that some

prostitution and drugs occasionally occur at probably all gentlemen's clubs throughout the country, even though most gentlemen's clubs try to prevent such activity from occurring on their premises.Based upon my vast experience working in the gentlemen's club industry, I believe that members of the New York City Police Department's Vice Unit are aware and should be aware that most gentlemen's clubs in New York City employ dancers who might potentially engage in prostitution or solicitation while they are working at the club, without the knowledge of the club and despite the best efforts of the club to prevent prostitution from occurring, even when the ownership and management ofthe Club take reasonable affirmative steps to prevent such illegal activity from occurring. 23. Therefore, it would be wholly unreasonable for law enforcement officials and

officers to reasonably believe that an owner, board member, or manager of a gentlemen'S club had knowledge of or promoted prostitution at their gentlemen's club simply because the police allegedly became aware of a handful of occasions wherein an employee or dancer ofthe club independently agreed to engage in prostitution. 24. I have also tried to assist law enforcement on occasions wherein I believed

individuals involved in the gentlemen's club business were breaking the law. For example, I served as a prosecution witness for the U.S. Attorney's Office and the FBI in two criminal trials against organized crime figures, two of whom were convicted in Federal Court of

extortion and racketeering charges in connection with the VIP Club and one who was also convicted ofamurder unrelated to the club. See, U.S. v. Scala. 487 F.Supp.2d 454 (SDNY 2007).
25.

Following the trial, FBI agents advised me that I was one of their best

witnesses and that my testimony was instrumental in obtaining convictions against the mobsters Salvatore "Fat Sal" Scala and Thomas "Monk" Sassano.

GENERAL MANAGER OF HOT LAP DANCE CLUB

26.

I was employed as the General Manager ofthe Hot Lap Dance club (the

"Club" or "HLD Club") from on or about February 2008 through July 17,2008, the date of the closure of the Club. 27. As General Manager ofthe Hot Lap Dance Club, my direct superior was Louis

Posner, the owner and operator of the Hot Lap Dance Club. 28. At no point in time did I ever speak with and/or communicate with Betty

Posner, wife of Louis Posner, about the Hot Lap Dance Club or its operations or finances. 29. At no point in time was Betty Posner involved in running the Hot Lap Dance

Club, nor am I aware of any occasion where Betty Posner was present at the Hot Lap Dance Club during business hours. 30. As General Manager of the Hot Lap Dance Club, it was my responsibility to

enforce the rules at the Club, which included making every reasonable effort to ensure that none of the Club's employees engaged in prostitution, drugs or any other illegal activity. 31. I was also responsible for calculating the money that the Club earned on a

given night, and I was aware ofthe revenues that were made by the Club on a given night that I was working as General Manager: 32. While the Hot Lap Dance was a profitable Club, the revenues were

considerably less than the revenues of most ofthe major Manhattan gentlemen's clubs in Manhattan, because the Hot Lap Dance Club did not sell alcoholic beverages which are a major profit center. 33. No reasonable police officer familiar with Manhattan gentlemen's clubs would

presume that the Hot Lap Dance Club was profiting from prostitution or other illegal activity based on the revenues earned by the Hot Lap Dance Club.

HOT LAP DANCE CLUB

34.

The Hot Lap Dance Club operated at 344 West 38th Street in Manhattan, New

York. The HLD Club operated from a full floor that was approximately 7,000 square feet in a building with a separate entrance and lobby for commercial use. 35. The Club had four large open rooms devoted solely to lap dances. The dancers

earned most of their money from providing lap dances to patrons of the Club. The suggested tip to a dancer was $20 for a topless lap dance, which was equivalent to a three to five minute song. 36. There were "VIP Rooms" at the club wherein patrons of the Club could pay

additional money to have a private lap dance in a private booth or a private room. There were six private booths and two private rooms. 37. In order to prevent prostitution from occurring in the private booths at the

Club, the booths were separated by thin curtains on three sides so that employees and other patrons of the Club would easily hear ifthere was any sexual conduct or other illegal activity occurring in these booths. 38. Most gentlemen's clubs in New York City have private rooms and booths

available for patrons to receive private lap dances. In most ofthese gentlemen's clubs, all of the private rooms are separated by hard walls. 39. In the case of the Hot Lap Dance Club, there were only two private VIP rooms

separated by hard walls and they were used mainly by groups of patrons, including bachelor parties. 40. The VIP host was in charge of the VIP rooms and booths used for lap dances

with customers and he was required to closely monitor these VIP rooms and booths. 41. Any law enforcement official with basic knowledge of gentlemen's clubs and

how they operate would know that the existence of private rooms and booths at a gentlemen's club was not uncommon and not in any way evidence that the club was promoting prostitution. 42. The Club also employed a "House Mom" who was in charge of the dancers and

ensuring that the dancers followed the Club's rules and did not break the law. 43. To further ensure that laws were not broken, the Club also hired outside

security, comprised of off-duty police officers and state licensed security guards, who were responsible for monitoring the activity in the Hot Lap Dance Club each night. 44. The Club also employed a bathroom attendant for the men's room whose

responsibilities included ensuring that there was no use or sale of drugs by customers in the

men's room. 45. The Club management, along with the VIP Host, the House Mom, the

professional security staff, the bathroom attendant and other employees were all responsible for making every reasonable effort to ensure that the Club's customers and dancers did not break the law. 46. Prior to July 17,2008, the date of Louis and Betty Posner's arrests, the Club

had no prior record of arrests or criminal prosecutions against its staff or ownership. 47. The Hot Lap Dance Club was considered a nontraditional strip club that

appealed to a sophisticated, trendy and affluent crowd. "Lap Dance Club" is the British term for a gentlemen's club.

WEBSITE & INTERNET RATINGS AS TOP CLUB 48. The Hot Lap Dance Club had a website that was accessible to the public,

including law enforcement. The website Frequently Asked Question's (the "FAQ's) section described the Club and its atmosphere as: "There is simply no comparison between the Hot Lap Dance Club and a traditional Gentlemen's Club. From the moment you step into the Hot Lap Dance Club, you are having a great time at a fantastic party loft, surrounded by the hottest dancers in New York. Time just melts away as you experience the ultimate in erotic entertainment. You are in a friendly, low pressure, hustle free atmosphere where you can "chill out" and have an amazing time whether you are by yourself or with a group of friends ..." (See website FAQ' s, June 23, 2008, annexed as Exhibit "A"). 49. Clearly, a reasonable person, including law enforcement, should have been

able to recognize from the website that the Hot Lap Dance Club did not cater to individuals seeking to use the services of a prostitute.

50.

In 2007 and 2008, the Club was consistently rated by the major Internet strip

club directories, Strip Club List (www.StripClubList.com) and The Ultimate Strip Club List (www.TUSCL.com). as one of the top strip clubs in the country. 51. In 2008, AskMen.com, the largest men's portal on the Internet, published an

article, "Strip Clubs: Top 10," and rated the Hot Lap Dance as the best gentlemen'S club in the world. The Wikipedia Article: "Strip Clubs: Top Clubs", (annexed as Exhibit "B"), reported: "The popularity of a given club is an indicator of its quality, as is the word of mouth among customers who have visited a cross section of clubs in different regions. A 2008 article published by the AskMen.com portal posted a list of the top 10 strip clubs in the world. According to their criteria, which included aesthetics, quality of girls, services, and such, the top clubs at the time were: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Hot Lap Dance Club, New York City Night Flight, Moscow Larry Flynt's Hustler Club, New York City 4 Play Gentlemen's Club, Los Angeles Spearmint Rhino, Las Vegas Le Crazy Horse, Paris Seventh Heaven, Tokyo Mons Venus, Tampa Wanda's, Montreal K5 Relax, Prague"

DANCERAPPUCATIONPROCESS

52.

Part of my job duties as general manager included interviewing potential

dancers for the Club, who were hired as independent contractors, rather than as employees 53. I was specifically instructed by Louis Posner, the owner of the club, that I

should not hire any dancers who had previously worked as an escort or at any other prostitution business. 54. Louis Posner's wife, Betty Posner had no involvement in hiring any of the Hot

Lap Dance Club's employees or dancers, and was in no way involved in the management of the Club. 55. As per the strict instructions of Louis Posner, during the course of every interview

for prospective employees and independent contractors, the applicant was told that prostitution was strictly prohibited at the Club and that any employee or dancer engaged in prostitution or any other illegal activity at the Hot Lap Dance Club would be fired immediately. 56. The Hot Lap Dance Club was very selective in the dancers that were hired and

the Club sought to hire quality women who would not engage in prostitution, drug use or any other illegal activity. Each dancer was required to complete an employment application, along with a valid ID with their date of birth. 57. The Application asked for name, address, telephone number, email address,

U.S. employment eligibility, social security number, work experience and personal references. The Application also inquired: "Have you been convicted of or pleaded no contest to any crime(s) within the last five years? If Yes, please explain:" 58. The Hot Lap Dance Club would not and did not hire any employees or

dancers with a criminal conviction for drugs or prostitution. Likewise, the Club would not and did not hire any dancers who had worked at an escort service, brothel or other prostitution business. 59. The dancers hired at the Hot Lap Dance Club came from a wide variety of

backgrounds, including college and graduate students, dancers from the other top gentlemen's clubs in New York City, professional models and single mothers. The female dancers at the Club were trying to better themselves by earning extra money through legitimate work. 60. Employment Applications that I have reviewed of dancers hired by the Club

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included: Graduate of Yale University and Harvard Law School who worked at Weil Gotshal; Brooklyn law student who interned with King's County District Attorney's Office; Graduate students from Sarah Lawrence, HOfstra University, Fordham University, New York University, Columbia University and Boston University Medical College; Dancers from Rick's Cabaret in NYC, Larry Flynt's Hustler Club in NYC, ScoresEast Side in NYC, Rick's Men's Club in Houston, Spearmint Rhino in London, Spearmint Rhino in Los Angeles, and Stringfellows in Paris.

CLUB RULES PROHITING PROSTITUTION AND DRUGS

61. The Club had a strict policy against allowing employees and/or patrons from engaging in any illegal activities on the Club's premises, including engaging in prostitution. 62. Part of my job duties as General Manager was to spot-check the Club's private rooms, and to ensure both that the rooms were being used as scheduled and to confirm that no illegal activities, including prostitution and drug use, were taking place therein. 63. There were frequent meetings of Club employees, security, dancers and management warning that the Club dancers were specifically prohibited from engaging in sexual conduct with clients or taking drugs and discussing the enforcement ofthe Club rules. 64. The Club frequently sent out emails to all staff and dancers reinforcing the Club policy against prostitution and drugs. 65. The Club's management, employees and security would vigilantly monitor the Club premises to ensure that there was no violation of Club rules prohibiting prostitution and drugs. 66. The Club's website publically spelled out the Club rule that for any customers using the Club's private rooms: "If a dancer feels that a customer has acted inappropriately or has made improper demands, the dancer may immediately end the private room session, and the customer is not entitled to any refund." The website FAQ's also posted the following Club rules:

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"We have the following rules which we enforce: * The possession, use or sale of marijuana or illegal drugs is strictly prohibited at any of our events. * No solicitation of our dancers for sex, sexual favors or dates. The exchange oftelephone or contact information is prohibited." (See FAQ's, annexed as Exhibit "A") 67. In the dancer's dressing room, the Club posted in bold print the House Rules (a copy ofwhich are annexed hereto as Exhibit "C"), which stated that: "House Rules:
1. No Drug Use on Premises. Anyone caught smoking pot or using drugs will be immediately terminated ...

3. No sexual contact in the semi-private rooms, or VIP rooms. This means no touching of the customer's cock with hands, mouth, or vagina. Also, no customer may touch you beneath your G string." 68. There was also an internal forum on the Internet for Club employees and dancers (the "Forum") that specified the rules and regulations, including the prohibitions against prostitution and drugs. (See Vbulletin, Rules and Regulations Hot Lap Dance Forums, annexed as Exhibit "D"). 69. In July 2007, Louis Posner posted on the Forum the following Rules and Regulations for all employees, security and dancers:
"No Solicitations and the law

SOLICITATIONS: We have a very respectable group of dancers who I trust will not engage in any inappropriate conduct with customers. However, to be on the safe side, I want you to be fully aware of the law and our policies. If any customer solicits a dancer for sex, please immediately notify security. Solicitation by a customer of a dancer for sex is a crime itself (see below). If any dancer agrees to give or gives a customer a hand job, a blow job/ or sex, or allows the customer to eat her out or finger her, and then she has committed the crime of prostitution. Any act of prostitution will result in immediate

12

termination." "PROSTITUTION: Prostitution is defined under the New York Criminal Law (see below) as "sexual conduct" with another person in exchange for money. It can be the actual act or an offer or an agreement for sex. "Sexual conduct" includes sexual intercourse, oral sex (blow job), cunnilingus (eating out), a hand job, foot job, anal sex, fingering, etc ... " "New York Criminal Law Statute S 230.00 Prostitution. A person is guilty of prostitution when such person engages or agrees or offers to engage in sexual conduct with another person in return for a fee. Prostitution is a class B Misdemeanor." S 230.02 Patronizing a prostitute; definitions. 1. A person patronizes a prostitute when: (a) Pursuant to a prior understanding, he pays a fee to another person as compensation for such person or a third person having engaged in sexual conduct with him; or (b) He pays or agrees to pay a fee to another person pursuant to an understanding that in return therefor such person or a third person will engage in sexual conduct with him; or (c) He solicits or requests another person to engage in sexual conduct with him in return for a fee. 2. As used in this article, "person who is patronized" means the person with whom the defendant engaged in sexual conduct or was to have engaged in sexual conduct pursuant to the understanding, or the person who was solicited or requested by the defendant to engage in sexual conduct."

"DRUG POLICY: We have a "no tolerance" policy towards illegal drugs, including marijuana. No staff or dancer may use, be under the influence, possess, sell, solicit or buy any illegal drugs during work hours. Staff and dancers are also required to report to us any illegal drug usage by other staff, dancers or customers. As a condition of employment, all staff and dancers must submit to "spot" searches of their personal possessions during working hours. Any violation of our drug policy, including refusal to comply with a drug search, will result in

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immediate dismissal."

"No Exchange of Contact Information with Customers Our FAQ Rules specifically state that: "The exchange of telephone or contact information is prohibited." Dancers may not give out their telephone numbers or email addresses to customers. Likewise, dancers may not ask for or accept a customer's telephone number, email address or business card. Customers will frequently ask for a dancer's telephone number or email address. The dancer should respond that she is prohibited by our rules from exchanging contact information. We want to discourage customers from coming to our parties to pick up dancers, as we are a lap dance party, not a dating service or an escort agency. If a dancer gives out her telephone number or email address to a customer, it is presumed that it is for purposes of prostitution. If a customer wants to see you again, tell him to see you at the next lap dance party. That way you keep the customer and make more money. If the customer wants to know your schedule, tell him to check with the dancer's list posted on the Forum every Sunday evening or to email toinfo@hotlapdance.com..

FOOD & CATERING

70. The admission for entrance to the Club was $50 which included a gourmet catered full course dinner buffet. Accordingly, food services and catering were an integral part of the services offered by the Club. On a daily basis, the Club spent approximately $500 to $1,000 on various foods and soft beverages. 71. Every day there was an order from Fresh Direct for fresh fruit, vegetables, delicatessen meats, and other foods. For example, on June 27, 2008, the Club's order of fresh foods from Fresh Direct was for $291.01. (See Fresh Direct, Order: 3339215102 1714689, annexed as Exhibit "E"). This represented a typical daily order from Fresh Direct. There were also additional daily orders of food and beverages from various local restaurants and stores. 72. The Club also provided catering services for private parties, including corporate

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events and bachelor parties. There was an additional charge for "catering room rentals" which was specifically delineated on the Club's invoice. (See copy of blank Club invoice, listing "Catering Room Rentals," annexed as Exhibit "F")

NYPD'S ABUSIVE TAKEDOWN OF THE CLUB

73. On the late evening of Thursday, July 17,2008 and the early morning of

Friday, July 18, 2008, the NYPD Vice Enforcement Unit ("Vice") raided the Club. 74. At the time ofthe Vice police raid, none of the patrons and dancers at the Club

were engaged in prostitution, or any other illegal activity. 75. On that night, there were over 65 dancers working at the Club, and Vice detained all of these dancers, and gathered them together in another room within the Club location. I was told by several of the dancers that they were pushed and shoved in the process; forbidden to change out of their dancer outfits, and had to wait to go to the restrooms one by one. 76. It was confirmed to me by a number of dancers that the dancers had their identification checked; were forced to line up against a white wall and have their pictures taken; were involuntarily videotaped under bright lights; that many of the dancers were distressed by their lack of privacy and were humiliated by Vice taking pictures and videos of them, which were subsequently leaked to the media; that many ofthe dancers were stared at, bullied, intimidated, humiliated, and verbally abused by Vice who called them "whores" and other pejorative insults. 77. After being forcibly detained for three to four hours, the dancers from the Club, many ofwhom were traumatized, were told to leave the Club in the early morning of July 18, 2008. 78. I was arrested at the Club, along with Louis Posner and fourteen staffand security,

15

including the bathroom attendant, the coat check girl, and the porters who cleaned up, in addition to four dancers from the Club. 79. Vice had arrested a total of26 individuals, including 19 employees and security guards from the Club, five dancers from the Club, the owner Louis Posner and his spouse Betty Posner. 80. I was surprised to later hear that Betty Posner was arrested as she never worked at the Club, and I only saw her once outside the entrance to the building where the Club was located when she briefly stopped by the Club prior to its opening. 81. Ofthe 26 individuals from the Club who were arrested and charged with prostitution related crimes, 25 individuals had their cases dismissed or otherwise disposed of without a criminal conviction.

ALLEGATIONS OF ATTEMPTED EXTORTION BY VICE POLICE

82. On or about June, 2008, I was advised by Louis Posner, the owner of the Club, that the Club's security officers had been approached by members ofthe New York City Police Department's Vice Squad who tried to extort payments of$10,000 per month from the Club. 83. Louis Posner advised me that he was informed by two members of the Club's professional security staff, Orlando Valentin (a former Seagate private police officer) and Adriel Caamano (a Seagate Private Police Sergeant), that they were approached by members of the NYPD' s Vice Squad who sought cash extortion payments from the HLD Club under threat of closing down the Club, arresting all of its staff and the owner's wife Betty Posner. 84. Upon being advised ofthe threats made to the Club by the NYPD Vice Squad, I had a meeting with Louis Posner wherein we discussed how we would handle the situation.

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Louis Posner and I agreed that the Club would not make the cash payments to the NYPD Vice Squad. However, we decided that the staff at the Club had to be advised of the events that transpired and the risks of continuing their employment at the Club. 85. The following day, Louis Posner held a meeting with the entire staff employed by the Club wherein he advised the staff that the Club was approached by the NYPD Vice Squad and told to make $10,000 monthly payments or else the Club would be raided and its employees would be arrested. The employees were advised that payments were not going to be made to the Vice Squad 86. After the meeting, one of the employees left the Club for fear that the Club would be raided and that she would be arrested and prosecuted. 87. Approximately one month later, on July 17,2008, Vice staged a massive raid on the HLD Club and followed through with every one of their alleged threats. 88. The NYPD Vice police raid ofHLD was massive and extremely brutal and was designed to put the Club permanently out of business. Every staff and security was arrested; the owner and his wife Betty Posner were arrested and charged with serious felony charges; five dancers were arrested; all other dancers were detained and videotaped by the police and interrogated by the DA's Office; all of the money from the Club and the owner was seized; very bad media publicity destroyed the Club's reputation and business; the ATM machines were smashed open and destroyed; all checks and debit disbursements bounced, and dancers, employees and vendors could not be paid; and the Club premises were sealed for 4 months and then turned over to the Landlord. 89. Although police had absolutely no reason to believe that Louis Posner's wife had any involvement in running the Club, Betty Posner was arrested and charged with felonies and

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jailed in Riker's for six days. Betty Posner was never indicted on any felony charges, and all criminal charges against Betty Posner were ultimately dismissed.

INTERNAL AFFAIRS CORRUPTION COMPLAINT

90. On January 19,2010, I joined with Mr. Louis Posner, who was a confidential informant dating back to 2008 under Anonymous Number 08-245, in an in-person complaint against the NYPD Vice Enforcement Unit with the NYPD's Internal Affairs Bureau ("lAB"), located at 315 Hudson Street, 3rd Floor, New York, NY 10013, to provide information regarding an alleged plot to extract an illegal extortion payment from the HLD Club of$10,000 a month, followed by regular monthly cash payments. 91. From approximately 9 pm until past midnight, we were interviewed by members oflAB about the information we had regarding the NYPD's Vice Unit's alleged attempt to extort money from the Club. We were interviewed by Detective Rhone, and then there was a taped interview with Sergeant Accomando and Detective Ramos who were assigned to the Internal Affairs Bureau Group No.9, Night Watch. 92. At the meeting with lAB, Louis Posner reported that he had been told by two off-duty police officers from the HLD Club professional security staff that two police officers from NYPD Vice had sought cash extortion payments from the HLD Club under threat of closing down the Club, arresting all of its staff, Louis Posner, his wife Betty Posner, and seizing all of the bank accounts of the Club and the Posners. The threat to arrest Louis Posner's wife was outrageous because I never even saw Betty Posner set foot in the Club. 93. A few weeks later, I met separately with the prosecution and members of the

18

NYPD lAB, and I advised them that I believed that Mr. Posner's complaint against NYPD Vice was appropriate, made in good faith and truthful.
COERCIVE PLEA AND ALLOCUTION

94. I was surprised to hear that in March 2011 that Louis Posner pled guilty to felony promoting prostitution, as well as three misdemeanor charges for filing a false police report. 95. I was also shocked to hear excerpts from Louis Posner's allocution at his plea wherein he admitted to certain things which contradicted my knowledge of the Club's operations. Based on my knowledge of the operations ofthe Club, the Club was popular for reasons that had nothing to do with alleged prostitution; condoms were never distributed to dancers for the purpose of having sex with customers; that no dancer was requested to have sexual favors as a condition of employment; and dancer fees were waived for reasons that had nothing to do with prostitution. 96. I believe that Louis Posner's plea and allocution were coerced due to external factors, including the NYPD's refusal to honor Court ordered payments for his attorneys.

AUDIO RECORDING ACKNOWLEDGING POLICE EXTORTION

97. Louis Posner subsequently played me the annexed audio recording of a telephone conversation he had with Orlando Valentin, one of the security personnel that made the complaint about the Vice Squad's threats to Louis Posner, where Mr. Valentin acknowledged that two Vice police officers came to the Club seeking a large cash bribe from the Club. I am familiar with Orlando Valentin's voice, as well as the voice of Louis Posner, and can identify the voices on the audio recording as the voices of Louis Posner and Orlando Valentin. A copy of the recorded telephone conversation, dated January 7, 2009 at 22:50 o'clock and transcript

19

are annexed as Exhibit "G"

POLICE DID NOT ARREST OWNER'S WIFE IN RAID OF ANOTHER CLUB

98. Through my sources in the gentlemen's club industry, I learned that on Monday, March 22, 2010, several dancers and employees at the Cheetah's gentlemen's club were arrested by NYPD Vice on prostitution and drug charges; and that the City of New York instituted a nuisance abatement lawsuit in the State Supreme Court closing down Three Amigos SJL, d/b/a Cheetahs Gentlemen's Club. (See State Supreme Court, County of New York, Index No. 40076312010.) 99. The Order to Show Cause alleged that the Club and its dancers and employees were in violation of the New York Penal Law, Articles 220 (criminal possession and sales of controlled substances), Article 221 (criminal possession and sales of marijuana), Article 230 (prostitution and promoting prostitution) Title H (sexual misconduct), the NYS Alcohol & Beverage Control Law and NYC Administrative Code Section 7-703 (public criminal nuisances). This nuisance abatement lawsuit which sought closure of the Cheetahs Club and heavy fines, was the result of arrests made of dancers and employees ofthe Cheetah Club for alleged criminal conduct that occurred on the premises on July 11,2009 and November 12, 2009 100. On Friday, March 26, 2010, the Cheetahs Club was reopened just in time for the weekend business, conditioned upon the payment of a $7,500 civil fine and a stipulation that provided, among other things, that all dancers and employees shall be advised as to what constitutes prostitution; any dancer who proscribes to prostitution will be immediately fired; there will be signs posted in the dancer's and employee's changing rooms warning against prostitution; a regular meeting will be scheduled for every week further advising and

20

reminding all dancers and employees to avoid prostitution; and that the private rooms shall be monitored. (See stipulation, annexed as Exhibit "H"). 101. The arrests and temporary closure of the Cheetah's gentlemen's club was no comparison to the vindictive police raid of the Hot Lap Dance Club and the malicious prosecution ofthose arrested and charged with crimes. Vice did not engage in any outrageous conduct with Cheetah's gentlemen's club, such as searching the private residence ofthe Club owner late at night, arresting and jailing the owner's wife, and charging her with serious felony crimes.

STEVEN ASLAN

State of New York County of New York

1~~
ROBERTA ARNONE, ESQ.

Sworn to before me on this 2nd day of May, 2013

II

~ f, ROBERTAARNONI! .02ARI044' BNotafy PubIo State of NewVork

~

QuaUfted In New York ..... ..,. . 201.

ea.n,J

'- 2015.s1

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