Matthew Cox

Right.

And so on paper, that nightclub looks extremely successful because you've got three main nights, including one night, which is the hottest club in Orange County, and three or four nights a week with live shows.

So someone like a Bo Jackson steps in and he's looking at the numbers.

Exactly what happened with your buddy.

That's why the nightclub industry...

I can speak from personal experience in Los Angeles, was just principally a money laundering venture.

Whether it was two popular nightclubs in Beverly Hills, there was one on the Sunset Strip, there were at least two down in Newport Beach.

They're just all pushing through money.

The reason why the nightclubs are really, not only because it's a cash-intense business, but you'll notice a club will have a two-year run or three-year run, then they shut down.

Then they'll reopen six or eight months later.

Well, that's a model that was generated by the Italians in the organized crime context.

Because that's how they set up the strip clubs.

Because there was a guy who was South Florida.

In fact, he's deceased, so I'll say his name, Michael J. Peters, who would go around setting up strip clubs.

Like one of the guys in my case met with Peters to get in on a strip club out of Minnesota.

And so they'll take a minimum of a million dollar investment,

And they'll funnel it through the strip club.

However, the way they would do it is they would take a business that's bankrupt.

They purchased the bankrupt business to capture the tax loss credits.

Because when you take that business and then inject new capital into it and operate it, you can write off those tax loss credits.