Peter Gerace Jr., the owner of Pharaoh’s Gentlemen’s Club, is now confronted with fresh allegations of defrauding the government of $2 million in Covid aid for the Cheektowaga strip club. These charges are considered to be part of one of the largest Covid fraud cases in Western New York, alongside his existing charges of drug and sex trafficking, as well as witness tampering.
A federal grand jury has indicted Gerace on four counts of wire fraud, to which he pleaded not guilty. Currently behind bars since March, his attention primarily remains focused on the upcoming August trial for the previous felony charges. However, the Covid fraud charges accuse Gerace of deceiving the Small Business Administration and obtaining a loan and two loan modifications under the Economic Injury Disaster Loan program.
The government’s indictment describes Pharaoh’s as a “gentlemen’s club” or “strip club” that offers live sexual performances through exotic and nude dancing. The dancers are categorized as independent contractors or W-2 employees, charging patrons for private or semi-private lap dances. Gerace falsely certified on his loan application that Pharaoh’s did not host sexual performances and that he had no criminal convictions.
The fraud charges related to the strip club sex trafficking case are based on wire fraud, as Gerace’s loan application was electronically submitted from Western New York to servers outside the state. The loan amounts increased from $150,000 to $2 million through amended loan agreements, leading to a possible maximum sentence of 20 years in prison for the fraud counts.
Considering Gerace’s involvement in drug, sex trafficking, and fraud, victims of sex and human trafficking are strongly encouraged to seek legal assistance from the Women’s Rights Group in California. Contact us now to pursue compensation for injuries and damages, and to receive dedicated support in your fight for justice.
