From around 2003 to the time he left in June 2008, Adewale Victor Oshin was the owner or part owner of several strip clubs, including Majik City in Portsmouth, shown, Majik City II in Newport News, the former Foxy Ladies in Norfolk’s Ocean View, Fantasy Lounge in Portsmouth and The Flame, which had been in Ocean View and later on Lynnhaven Parkway in Virginia Beach, according to the indictment and State Corporation Commission records. (Google Earth Image, Street view from 2007)
By Scott Daugherty, The Virginian Pilot/Hampton Roads
The former owner of several nightclubs in South Hampton Roads was sentenced today to 18 months in federal prison on tax evasion charges.
Adewale Victor Oshin, 51, of Portsmouth, put his head down on a courtroom table after learning his fate in U.S. District Court in Newport News.
And his wife – the current owner or co-owner of at least two of the clubs – broke down into tears.
“What has he done? Has he killed anyone?,” Folashade Oshin wailed at prosecutors as a half dozen friends and family members worked to escort her outside the courtroom. “Will someone please explain to me what he has done?”
Oshin pleaded guilty in February to one count of filing false tax returns and one count of structuring financial transactions to avoid reporting requirements.
According to court documents, Oshin was the owner or part-owner of several clubs, including Majik City in Portsmouth, Majik City II in Newport News, the former Foxy Ladies in Norfolk’s Ocean View, Fantasy Lounge in Portsmouth and The Flame, which had been in Ocean View and later on Lynnhaven Parkway in Virginia Beach. He also owned a muffler and brake shop.
Between 2003 and 2005, Oshin deposited more than $1.2 million into two personal bank accounts, including more than $745,000 in cash, court documents said.
An analysis of Oshin’s bank accounts revealed he failed to report all of his income on his tax returns, prosecutors said. A “conservative estimate” by the IRS indicates he failed to pay more than $86,000 in taxes.
Prosecutors said he also worked to avoid federal banking regulations that could have alerted the IRS to his wealth. Over about 18 months, he amassed more than $170,000 in a pair of personal bank accounts without making a single deposit for more than $10,000. Some of the deposits, which were eventually used to buy a $620,000 house in Portsmouth, were made on the same day.
In court, James Broccoletti, Oshin’s attorney, painted his client as a pillar of the Hampton Roads community who was both hardworking and generous. He recalled how Oshin grew up in Nigeria, moved to Virginia in 1980 and graduated from Norfolk State University; how he obtained his U.S. citizenship in 1996 and became a successful businessman.
Oshin’s family and friends sent 17 letters to the court on his behalf.
While agreeing Oshin had some good traits, Assistant U.S. Attorney Brian Samuels noted in court how he made his fortune: Strip clubs.
“What is that pillar based on?” the prosecutor said.
Federal agents informed Oshin he was under investigation in early 2008. In June of that year, he flew to Nigeria, where he built a house and lived for more than three years.
On Nov. 22, 2011, Oshin was arrested in Atlanta after he stepped off a plane from Nigeria.
Federal authorities claimed in court documents Oshin moved to Nigeria to avoid prosecution. Broccoletti countered his client simply wanted to reconnect with the family he left behind. He said Oshin didn't know the investigation resulted in any criminal charges.
“No one told him not to leave town,” he said.
Upon his release, Oshin will be on supervised probation for three years. He must pay $86,947 in restitution.
Broccoletti said Oshin was ready to pay $50,000 towards his bill.
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