Hollywood : Nightclub Owners Charged
The owners of The Palace nightclub and concert hall in Hollywood were charged this week with pocketing $434,337 they allegedly withheld from employee paychecks.
City Atty. James K. Hahn filed a 45-count complaint Monday against Dennis H. Lidtke Jr., 55, and Beverly Jean Lidtke, 57. Hahn said they own Palace Management Corp., which owns the bar. The Palace, at 1735 Vine St., specializes in rock music concerts.
Hahn said the Lidtkes pocketed the money instead of turning it over to the state to pay for employee state income taxes and contributions to unemployment and disability insurance.
The Lidtkes could not be reached for comment. The two, who Hahn says are married and live in the Mt. Olympus area, are scheduled for arraignment Sept. 12 in Los Angeles Municipal Court.
Each count is punishable by up to one year in jail and/or a $1,000 fine.
The withholdings allegedly occurred from the spring of 1987 until early this year, Hahn said. The money was taken from 10 employees, including managers, executive assistants, box office receptionists, security personnel and designer-directors, said Deputy City Atty. Michael Guarino, who is handling the case.
Hahn said the case was prompted by an investigation by the state Employment Development Department.
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