Mass. man pleads guilty to prostitution and fraud charges over strip club activities, COVID loan

Kenneth Denning of Holland, Massachusetts pleaded guilty to conspiracy to use an interstate facility to promote prostitution, conspiracy to defraud the IRS, conspiracy to commit money laundering, and multiple counts involving monetary transactions with property obtained through illegal activities. Denning owned Electric Blue in Tolland, Connecticut since the 1990s, operating under Denning Enterprises until a sale in January 2025. Customers paid cash cover charges and dancers paid house fees. Additional fees were charged for private rooms, including a lap dance room, where dancers were encouraged to engage in commercial sex transactions. Denning was aware of customers paying dancers for sex acts in the lap dance room and could monitor it via security cameras. He allowed and encouraged dancers to be fully nude despite Connecticut prohibitions and provided condoms to dancers and employees.

"Kenneth Denning, 69, pleaded guilty to one count of conspiracy to use an interstate facility to promote prostitution, one count of conspiracy to defraud the IRS, one count of conspiracy to commit money laundering, and two counts of participating in monetary transactions involving property obtained through illegal activities, according to a statement from Connecticut U.S. Attorney David Sullivan's office."

"According to court documents, customers paid a cash cover charge - typically about $5 - to enter the club. Dancers were also required to pay a "house fee" of up to $50 per shift. Prosecutors said customers paid additional fees to access private rooms, including "VIP rooms," "Champagne rooms," and a "lap dance room," where dancers were "encouraged to engage in commercial sex transactions.""

"Customers regularly paid dancers for sex acts in the "lap dance room," which Denning was aware of, court records state. Denning could monitor the room through security cameras located in the back office at the club. The fee to enter the "lap dance room" was $20, while access to other private rooms cost between $100 and $150, according to court documents. Customers would then negotiate separate payments directly with dancers, often totalling hundreds of dollars, prosecutors said."

"Despite Connecticut laws prohibiting fully nude dancing, Denning "allowed and encouraged dangers to be fully nude," court documents state. Court records further state Denning and club employees supplied dancers with condoms and"

Read at Boston.com