Mustang Sally's Spirit and Grill Inc., which operates several adult entertainment venues across Western New York, agreed Thursday to pay $354,176 to resolve allegations of fraudulent funding, according to U.S. Attorney Michael DiGiacomo.
The business was accused of using two of its locations — Tiffany's Cabaret on Genesee in Cheektowaga and Mirage in Rochester — to receive funding through the Covid-era Paycheck Protection Program and Economic Injury Disaster Loan program. Neither establishment was eligible to receive these funds through the U.S. Small Business Administration, as SBA rules state businesses involving performances of "a prurient sexual nature" are ineligible.
"PPP and EIDL funds were meant for eligible businesses to help them through the depths of the Covid pandemic," DiGiacomo said in a press release. "This settlement demonstrates my office’s commitment to ensuring that taxpayer funds are used for the purposes they were intended and by the businesses for which they were intended."
Mustang Sally's received $177,088 in both 2020 and 2021 through these funds and are accused of falsely certifying their eligibility.
DiGiacomo said Thursday's settlement resolves pending litigation related to a 2017 Bentley Mulsanne, which was alleged to have been linked to Mustang Sally's PPP and/or EIDL funds.