Thursday August 2 3:49 PM ET

Plea Bargain Reached in Atlanta Strip Club Trial

ATLANTA (Reuters) - The owner of an Atlanta strip club that federal prosecutors said provided sex to professional athletes and laundered money for the mob pleaded guilty on Thursday to one count of racketeering.

As part of a plea agreement with prosecutors, Gold Club owner Steve Kaplan agreed to pay a large fine and to forfeit the glitzy nude bar building and property to the government.

Asked by U.S. District Judge Willis Hunt if he entered the guilty plea of his own free will and understood that he could be sentenced to up to 20 years in prison, Kaplan replied, ''Yes.''

``I am able to say you are pleading guilty to this plea agreement freely and voluntarily,'' Hunt said as he recorded the plea. He said he would sentence Kaplan at a later date.

Several of Kaplan's six co-defendants also entered guilty pleas to lesser offenses.

All seven had been on trial on charges of profiting from prostitution, loan-sharking, fraud and other crimes allegedly committed at the flashy bar that has drawn the likes of pop-star Madonna.

Charges were brought under racketeering laws designed to prevent ``corrupt organizations'' from taking part in interstate commerce. These laws have frequently been used to target the Mafia.

During 14 weeks of testimony, federal prosecutors portrayed the Gold Club as a criminal operation that laundered money for the New York-based Gambino crime family, bilked customers for thousands of dollars in fake credit card charges and sold sex to athletes.

National Basketball Association star Patrick Ewing and Atlanta Braves outfielder Andruw Jones were among the athletes who testified that they received sexual favors at Gold Club parties.

Prosecutors said the sexual favors were part of a marketing strategy to make the club a popular stopover for professional athletes passing through Atlanta.

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