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IRS Lands Plea in Fallout From ’08 Vegas Club Raid

(CN) - A man who worked as a VIP host at Pure, the exclusive club in Caesars Palace Las Vegas, pleaded guilty to concealing that he made "substantially more" than the $42,358 he indicated on an income tax return.

The development marks the latest coup for the Internal Revenue Service, which launched a much-publicized raid of Pure in February 2008 amid reports that the VIP hosts and managers were pocketing in millions in cash for their services.

Ali "Shawn" Olyaie's sealed plea agreement does not disclose how much he actually made, but clubbers reportedly tipped him thousands of dollars a night for preferential treatment. Olyaie agreed to waive an indictment and plead guilty Wednesday to an information filed in February that charges him with one count of making a false tax return in 2006.

The Justice Department said in a statement that Pure managers, door personnel and VIP hosts, including Olyaie, pooled the tips they collected every night.

Olyaie is set to be sentenced on June 29 at 9:00 a.m. Another Pure host, Richard Chu, is also currently awaiting sentencing after he pleaded guilty to the same charge on Nov. 9, 2010.

Pure's owners, including tennis "it" couple, Andre Agassi and Stefanie Graf, sued Pure for mismanagement in September 2010. Agassi and Graf filed a second suit alleging breach of contract last week.

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