PORTLAND, Ore. (KOIN) — Federal prosecutors are trying to seize the Cabaret II Strip club in Gresham after the building’s owner fell behind on restitution payments related to various income tax crimes.
George Kiraz was convicted in 2016 and sentenced to 36 months in prison and ordered to re-pay $657,243. But federal prosecutors maintain Kiraz is delinquent in the payments.
The move by prosecutors comes after a federal judge denied a similar request weeks ago. In January, the US Attorney’s Office also asked the judge to seize a home and a truck that belong to Kiraz.
“The judge already told them ‘no’, a month ago,” Kiraz told KOIN 6 News “I’m almost very certain that they can’t do it.”
Kiraz was not aware of the new court filing against him that targets the strip club only until he was contacted by KOIN 6 News.
Multnomah County put the market value of Kiraz’s building at $1,292,680. Court records show he owns it free and clear.
Federal investigators say the strip club business is owned by his ex-wife, and she pays $8,000 a month rent to Kiraz.
The US Attorney’s Office wants a judge to foreclose on the property, and allow potential buyers to bid on the building at 17544 SE Stark.