Sugar Daddy’s nightclub, a landmark on the Scottsdale nightlife scene, has been sold to new owners, but an Internal Revenue Service investigation into former owner Brian Roerich is ongoing, IRS officials said.
Roerich said he sold Sugar Daddy’s, 3102 N. Scottsdale Road, several weeks ago to focus on his Dos Gringos restaurant chain, now with five locations. He said he’s also recently sold two Bada Boom! Pasta Room franchises in Scottsdale and Ahwatukee Foothills, in addition to a sushi restaurant in Ahwatukee Foothills. He retains ownership of a Mill Avenue club in Tempe called the Cherry Lounge & Pit.
“I want to grow the Dos Gringos concept,” Roerich said. “I just couldn’t give (Sugar Daddy’s) the personal attention the way I wanted it.”
Agents with the IRS Criminal Investigations Division shut down Sugar Daddy’s for a day in February to conduct a search, but the agency is not revealing any information since the investigation is ongoing, said IRS spokesman Jim McCormick. The sale of the bar doesn’t affect the investigation, which could be completed in two or three months, he said.
“It’s still in process,” McCormick said. “It should be resolved one way or the other.”
Roerich said he hasn’t heard anything from the IRS since the raid.
“They just asked to look at some paperwork,” he said.
The nightclub’s bill of sale states the club was sold for $582,000 on Sept. 26. Liquor license applications list the new owners as Phoenix lawyer Mark Briggs, Sugar Daddy’s General Manager Erik Briggs, and Jacqui Allen. Briggs was unavailable for comment, while calls to the club for comment went unreturned.
However, Sugar Daddy’s MySpace profile claims the new owners have made some improvements, such as expanding the stage and adding a new sound and lighting setup.
Sugar Daddy’s also has been in the news during the past year in relation to the arrest of former boxing heavyweight champion Mike Tyson.
Tyson failed a sobriety test in the club’s parking lot Dec. 29 after leaving the Pussycat Lounge in downtown Scottsdale. He pleaded guilty in September to one count of felony cocaine possession and one misdemeanor count of driving under the influence. On Wednesday, Tyson was sentenced to one day in jail for the DUI charge and to three years of probation for the drug charge.