A once prominent D.C. nightclub owner was thrown behind bars Tuesday after a federal jury convicted him concealing millions in cash from the Internal Revenue Service. Abdul Khanu now faces up to 10 years in prison after being convicted of two counts of income tax invasion.
Jurors deliberated for three days, after a two-and-a-half week trial. His conviction comes more than six years after IRS agents raided his Potomac home and seized some $1.9 million in cash that authorities alleged he had hidden. At one time, Khanu was a maestro of D.C.’s late-night life. He ran clubs like Platinum, VIP and H20 and was quite often the toast of the town. His clubs hosted some of the nation’s elites — both Barack Obama and staff for Sen. John McCain, R-Ariz., held events at his clubs.
Second-tier celebrities like “Sex and the City” cast member Jason Lewis and boy bander J.C. Chasez showed up at H20. When then-NBA superstar Allen Iverson wanted to throw himself a massive 26th birthday party in 2001 — replete with top-shelf champagne and top-shelf basketball stars — he turned to Khanu to organize the party.
A grand jury indicted Khanu early last year, accusing him of skimming money from his clubs and paying his employees in cash to avoid tax bills. Even while federal authorities were winding their way through his businesses, Khanu was under pressure from the city as violence continued to plague his clubs.
In June 2008, he surrendered his liquor license and shuttered Platinum after a series of complaints about teen parties at the Chinatown nightclub. City authorities decreed that he could only have one liquor license — for H20, on the city’s Southwest waterfront. A few months later, he lost the license to H20 after a violent August morning at the club.
Khanu, who has since moved to Bowie, was immediately taken into custody after Tuesday’s verdict. He is being held without bond while he awaits sentencing. No date has been set. His lawyer, Billy Martin, didn’t respond to a request for comment.
