Lawyer accuses Reno strip clubs of mistreating dancers

A Reno lawyer is accusing area strip clubs of mistreating dancers by subjecting them to unlawful employment practices, unsanitary conditions and illegal activity.

Lawyer Jason Guinasso made the accusations in a letter sent to the Reno Sparks Chamber of Commerce and Reno City Council members as the city pursues new ordinances that could force the strip clubs to move out of downtown.

Guinasso, whose law firm is investigating complaints from several dancers, said he believes policy makers should be aware of the conditions the women described for him. Guinasso also does pro bono work for AWAKEN, a local anti-sex trafficking organization.

He sent the letter to the Chamber because the influential business organization spoke in opposition to the proposed ordinances at a council meeting in November.

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"This investigation has unearthed credible and widespread examples of mistreatment, abuse and exploitation of women at the hands of strip club owners, employees and clients that I think the Chamber should be aware of as it considers whether it is going to continue to allow and support strip clubs to continue to operate at places in our community where they are not in conformance with current zoning and land use restrictions," Guinasso wrote.

"This is the second recent investigation that indicates illegal activity in Reno's strip clubs. Continued silence or inaction should be considered as complicity in light of these abhorrent examples of mistreatment, abuse and exploitation of young women right here in our community."

Last year, the city revealed that Reno City Attorney Karl Hall had hired a private investigator to spy on the clubs. The report from that investigation made similar claims of unsanitary conditions and sexual favors at the clubs.

Ann Silver, chief executive officer of the Chamber, said the board stands by its position that the city's proposed ordinance changes forcing strip clubs to move is the wrong way to deal with suspected illegal activity.

"The board stands by its original statement that if there is illegal activity, it should be in investigated (by law enforcement)," Silver said. "If illegal activity is being conducted in any place of business, there is a process to investigate it and shut it down."

Mark Thierman, a lawyer who represents three strip clubs owned by Keshmiri Entertainment, denied each accusation in Guinasso's letter, which he said is full of unproven allegations.

"What can you say to someone who says, 'I heard something from somebody but I won't tell you who and I won't tell you when'," Thierman said. "Let's see some real proof. Let's talk reality."

The fight over the city's efforts to force the strip clubs to relocate to properly zoned industrial areas has become increasingly ugly in the past couple months. The Keshmiri family has said it will hire a grass roots organizer to work against elected officials who support the ordinances.

Most recently, Kamy Keshmiri threatened to raise the rents on the residents of the weekly motel he owns that is attached to the Wild Orchid. He urged the residents-- many who are desperate to keep a roof over their head-- to help convince the council not to pass the ordinances.

The Reno Planning Commission is expected to weigh in on the proposed ordinances in March. The Reno City Council will then decide whether to enact them.

Guinasso said he has spoken with several current and former dancers at Keshmiri Entertainment's three clubs: The Wild Orchid, Fantasy Girls and Spice House. He said the women who reported the problems to him don't want their identities released.

He said the women are pressured to provide sexual favors, particularly to VIP clients at the clubs. Managers sometimes recruit dancers to distribute illegal drugs, Guinasso's letter said.

Guinasso claimed the clubs allow the women to be "bought out" or taken off site by clients. Clubs are not licensed escort services and city ordinance prohibits such buy outs.

Dancers are not employees of the clubs, rather they are independent entertainers who sign contracts with the clubs before performing in them.

Guinasso said clubs subject the dancers to abusive contract requirements, prohibit them from obtaining copies of their contracts and don't allow them to negotiate better terms. The dancers are fined by the clubs for arriving late, leaving early or taking breaks, he said.

Asked if he provided his information to police, Guinasso said he will keep law enforcement in the loop but acknowledged that the evidence he is relying upon probably wouldn't be enough for the police to take action.

"There has to be some sort of crime they can take action on and I don't know if my findings would have that kind of evidence," he said, adding his law firm is in the due diligence phase of deciding whether to proceed with an employee rights lawsuit.

"My bailiwick is employment and labor law," Guinasso said. "I want to find a way to vindicate their work place rights. That's where I have something to offer."

Reno Assistant Police Chief Jason Soto said his department routinely runs undercover operations at the clubs to determine if any illegal activity is under way, but noted it is difficult for officers to gain access covertly.

Thierman scoffed at the allegations in Guinasso's letter.

He was adamant that dancers are not allowed to be "bought out" by customers. A copy of the contract provided to the Reno Gazette Journal by Keshmiri Entertainment specifically prohibits it.

Thierman said women are allowed to take breaks whenever they want but aren't allowed to leave early. They also could be subjected to fines from the club for missing their scheduled stage time, according to the contract obtained by the Reno Gazette Journal.

"People can't leave early because we don't want them to engage in prostitution," he said. "The no touching rule is strictly enforced. These are just nonsense."

Thierman disputes Guinasso's claim that the dancers aren't allowed to take a copy of their contract or consult with their own lawyer before signing it. The copy of the contract provided to the Reno Gazette Journal includes a clause in which the dancer must acknowledge she was given the opportunity to consult a private lawyer.

The contract also includes a 30-day "cooling off" provision in which either party can opt out of requirements that any disputes be settled through arbitration rather than via an individual lawsuit or a class action lawsuit.

A list of "house rules" the dancer must agree to in the contract includes requirements that her hair be clean and styled, her fingernails and toenails be "neatly groomed and polished" and makeup applied. Dancers must not wear any lotion, oil or "greasy materials of any kind" and can't chew gum while on stage.

Dancers' boyfriends or husbands are not allowed into the club during their shifts and dancers can't use their cell phones on the club floor.

According to the house rules, the club will not help settle disputes over money between a client and a dancer. The rules also warn the dancers that "the Reno Police Department has informed management that the District Attorney's Office will not prosecute those individuals who refuse to pay for dances."

Both Reno police and the Washoe County District Attorney's Office deny any such agreement is in place. Depending on the value of any dispute, potential criminal charges might be handled by the Reno City Attorney.

Thierman also said Reno code enforcement and the health district routinely inspect the clubs and any deficiencies found are corrected.

"We just replaced the carpet at Fantasy Girls and we have a cleaning service that comes in," Thierman said. "The carpet is being replaced at Spice House. It was way past time in my opinion.

"And as far as I know none of the managers sell drugs. If they do, go bust them."