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Opening statements begin in strip club trial

Steve Kaplan arrives Monday at the federal courthouse in Atlanta for opening arguments in the racketeering trial against him.

ATLANTA, Georgia (CNN) -- Sex, fame and organized crime took center stage in an Atlanta courtroom Monday, as federal prosecutors began arguing their racketeering case against the operators of The Gold Club, a nude dance bar known for catering to the rich and famous.

Opening statements got under way in a trial expected to feature testimony from prominent professional sports figures who allegedly had sex with female dancers with the knowledge and encouragement of club operators.

"These men are the people many in our society honor and celebrate," said prosecutor Art Leach. "They are not being charged with any wrongdoing ... They are simply human, tricked and used through one of the strongest human appetites -- our sexuality."

The owner of The Gold Club, Steve Kaplan, and five other men, including an alleged captain in the Gambino crime family and a former Atlanta police officer, are charged with being part of a wide-ranging criminal conspiracy centering on the club, located in the city's upscale Buckhead district. One of the club's dancers is also on trial.

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As part of the alleged racketeering conspiracy, Kaplan is accused of sending dancers across state lines to engage in prostitution, credit card fraud, obstruction of justice, extortion, money laundering and bribing police. He is also accused of paying protection money to the Gambino family, headed by jailed mobsters John Gotti Sr. and his son, John A. "Junior" Gotti.

Leach told the jury of seven men and five women that Kaplan was an "earner" for the Gambino family, getting mob protection in exchange for proceeds from the club. He said Kaplan used high-profile celebrities to attract customers who were overcharged for champagne and private rooms and had unauthorized charges billed to their credit cards, including one intoxicated man who was billed $24,000 during a single visit.

Patrons who complained were told that if they pursued legal action, their spouses would find out, he said.

"Mr. Kaplan used people. He used women, he used celebrities, he used professional athletes for his own personal gratification and gain," Leach said.

But Steve Sadow, Kaplan's attorney, told jurors that the case was built on "lies and prejudice" from witnesses "bought and paid for" by the government. He called Kaplan a "legitimate, hard-working businessman" and scoffed at the idea that he arranged sexual favors for professional athletes.

"Sports starts don't need Steve Kaplan's help to get women," Sadow said.

Sadow cited the recent problems in the case of Oklahoma City bomber Timothy McVeigh to attack the credibility of the FBI's investigation in the case. He also accused Atlanta prosecutors of going after Kaplan "because he is a New York Jew."

In addition to Kaplan, the other defendants are:

• Michael "Mikey Scars" DiLeonardo, accused of extortion, money laundering and obstruction of justice. He is identified in the indictment as a captain in the Gambino crime family, though he has never been convicted of any crime.

• Norbert Calder, the club's general manager, accused of allowing prostitution and illegal drug use at the club.

• Roy Cicola, a club assistant manager, accused of allowing prostitution at the club.

• Reginald Burney, a former Atlanta police officer, accused of tipping off club management about pending city inspections.

• Larry Gleit, an accountant accused of credit card fraud, money laundering and obstruction of justice.

• Jacklyn Bush, stage name "Diva," accused of prostitution.

All of the defendants have denied the charges. Kaplan's attorneys have said that he knew nothing about sales of sex or drugs at the club, which raked in annual revenues of up to $20 million.

In his opening statement, Leach said that three prominent professional athletes will testify: Terrell Davis of the NFL's Denver Broncos, Jamal Anderson of the NFL's Atlanta Falcons and Patrick Ewing of the NBA's New York Knicks. In addition, at least two other basketball stars, Dikembe Mutombo of the Philadelphia 76ers and former NBA player Dennis Rodman, have been subpoenaed by prosecutors.

Other athletes on the prosecution list may be called to testify either that they had sex with strippers at the club or saw others engaged in sex with the entertainers.

The younger Gotti, serving a 77-month federal prison sentence, was recently transferred to a federal prison in Atlanta, raising speculation that he, too, will be called to testify in the case. His attorneys say he will not cooperate and will take the Fifth Amendment.

Sources tell CNN that prosecutors have offered to allow Gotti to give an affidavit outlining his relationship with Kaplan, but he has so far refused. If he does take the Fifth, prosecutors would be able to introduce evidence connecting the two men.

Kaplan's attorney, Linda Sheffield, said the two men know each other because they have homes near each other on Long Island, their children attend the same school and their wives are acquainted. But she said they do not have a business relationship.

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