Crime scene investigators works at the scene of a fatal shooting at Boogie Nights Club in Harvey on March 13, 2019. The club was formerly Arnie’s Idle Hour. The proprietor of a shuttered Harvey strip club at the center of a federal corruption case that ensnared relatives of the city’s former mayor has been sentenced to 20 months in federal prison for filing false tax returns, according to the U.S. attorney’s office.
From 2003 to 2018, Kellogg and Johnson conspired to regularly demand and collect payments from the strip club based on threats that the city of Harvey would potentially interfere with the club’s operations if the payments were not made, according to prosecutors. From 2012 through 2017, the club underreported income by more than $5 million, according to prosecutors, who sought a prison sentence for Arnold of a bit more than two years but less than three years.
A relative of Arnold’s was the sole shareholder of the business and purportedly the president, but Arnold was in charge of Arnie’s, receiving near-daily reports regarding operations and making all final decisions regarding the business, prosecutors said. The government said after charges were filed and while Arnold was on pretrial release, she filed two fraudulent Paycheck Protection Program loan applications, the program meant to help businesses keep their doors open during the COVID-19 pandemic.