On this day, Jan. 18, 1980, Studio 54 nightclub owners Steve Rubell and Ian Schrager were sentenced to three years in prison for tax evasion. The Manhattan discotheque was the center of the universe of celebrities, society figures, druggies and thugs. Rubell bragged that only the Mafia pulled in more money than his new club, and the police raided Studio 54 soon afterward.
The friends served a reduced sentence of 13 months after Rubell told prosecutors that former White House chief of staff Hamilton Jordan had once snorted cocaine at the club. A special investigation resulted in no charges.
Rubell died of AIDS in 1989. Schrager is now known for creating the boutique hotel genre.
-Scott McCabe
