Tolland Club Owner Sentenced in Prostitution, Tax Fraud

Kenneth Denning, the former owner of the Electric Blue strip club in Tolland, Connecticut, was sentenced to 16 months in prison and three years of supervised release after pleading guilty to offenses involving promoting prostitution, tax fraud and money laundering. Prosecutors said Denning and club employees encouraged dancers to arrange paid sex with customers in private rooms, while club proceeds were kept in cash and used for business expenses and Denning’s personal spending. Investigators estimated that nearly $3 million in business income went unreported from 2020 to 2022, and said Denning obtained pandemic relief money through a false loan application. The court ordered him to pay about $700,000 in restitution to the IRS and Small Business Administration and forfeit more than $1.5 million.