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The new Cotton Club continued to thrive through to the summer of 1939, when the Internal Revenue Service hit the club's management with indictments for income tax evasion. The indictments hit the Cotton Club Management Corp, including Herman Stark - President, George Goodrich, -- Accountant, and Noah Braustein - Secretary-Treasurer, with four counts of failure to pay, and embezzlement of fees. If convicted, all three men could withstand 여수가라오케 25 years in prison, 부산가라오케 and fines of upto $20,000 each. Amazingly, because he was just listed a great employee, Frenchy DeMange escaped the indictment. At trial, the Cotton Club Management Corp. found out guilty, nevertheless the three officers escaped sincerity. Still, Stark had to fork over a hefty fine to the government, and even $3,400 owed in back taxes.

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Because ended up being so accessible with its new Midtown location, the Cotton Club was raking in the money. In the third week alone, it grossed more than $45,000, as well as in the first sixteen weeks, the average weekly gross was $30,000. The prices in the joint were higher than the Cotton Club's in Harlem. A steak sandwich rose from $1.25 to $2.25. Scrambled eggs with Deerfield sausage rose from $1.25 to a $1.50 and lobster cocktails went from $1.00 to $1.50.

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