5 things to know about Club Onyx, a troubled strip club facing loss of its alcohol permit

Questions about the owners of Club Onyx could factor into a decision Tuesday about whether the south side strip club gets to keep its alcohol license. Here’s what you need to know.

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Former casino consultant bought Club Onyx in 2020

Charles G. "Jerry" Westlund, who holds an ownership stake in several Indianapolis area strip clubs, was featured last year on the Professional Adult Nightclub DJ Association (PANDA) website. The promotion for a 2021 video interview lists Westlund as a 2021 Strip Club Industry Hall of Fame inductee.
Charles G. "Jerry" Westlund, who holds an ownership stake in several Indianapolis area strip clubs, was featured last year on the Professional Adult Nightclub DJ Association (PANDA) website. The promotion for a 2021 video interview lists Westlund as a 2021 Strip Club Industry Hall of Fame inductee.

One of the club’s owners is Charles G. “Jerry” Westlund, a former political consultant accused of embezzling hundreds of thousands of dollars while working for a California casino in the 1990s. He was convicted of tax evasion and forgery, but later had his record expunged.

He then turned to strip clubs and now owns dozens across the country. He acquired Club Onyx in 2020.

Indy strip club's new owners create complicated picture

Ryan Carlson, ownership-representative for Club Onyx, defended the club's request to renew its alcohol permit at the March 6 Marion County Alcohol Beverage Board meeting.
Ryan Carlson, ownership-representative for Club Onyx, defended the club's request to renew its alcohol permit at the March 6 Marion County Alcohol Beverage Board meeting.

Shortly after getting a liquor license for the club, Westlund sold half his interest to an obscure limited liability company incorporated in Wyoming. The controlling interest is a trust whose beneficiary is a 60-year-old woman in rural Illinois with seemingly no experience in the adult entertainment industry.

Her son, however, has lots of experience. Ryan Carlson is an executive with a large adult entertainment company who was accused of hiding his income and assets after a $7.3 million court judgment against him. Carlson denies any wrongdoing and has not been charged with any crimes.

Another strip club company denies involvement

A truck pulls drives past Club Onyx on South Harding Street in Indianapolis.
A truck pulls drives past Club Onyx on South Harding Street in Indianapolis.

Yet another strip club company, RCI Hospitality Holdings, listed Club Onyx on its website as a licensed location until a police raid on the club became public last month. RCI owns the Club Onyx brand but its lobbyist denied it has anything to do with the Indianapolis location.

The company, which also owns PT’s Showclub in Lawrence, is a longtime client of influential Statehouse lobbyist and former ATC official Mark Webb, who is also representing Club Onyx. RCI contributed $1,000 each last year to Indiana Senate leader Rod Bray and his No. 2 at the time, Sen. Mark Messmer.

Club Onyx has a history of violence and other problems

Club Onyx Tuesday, March 14, 2023, in Indianapolis.
Club Onyx Tuesday, March 14, 2023, in Indianapolis.

The club has come under scrutiny because police have connected at least six shootings to the club since 2021. The gunfire left one person dead and five wounded. More than a dozen guns have been stolen from its parking lot and at least 10 other people reported being assaulted, sometimes by the club's security or employees.

The club closed temporarily last month after a police raid that led to the arrest of several workers on drug, alcohol, gun and prostitution charges.

ATC takes up Club Onyx case

The Indiana Alcohol & Tobacco Commission, which has come under scrutiny for failing to crack down on bars with violent histories, is scheduled to decide today whether to deny the club’s liquor license renewal request. A local board recommended denial.

Contact IndyStar reporter Tony Cook at 317-444-6081 or tony.cook@indystar.com. Follow him on Twitter: @IndyStarTony.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com. Follow her on Twitter: @allyburris.

This article originally appeared on Indianapolis Star: 5 things to know about Club Onyx, a south side Indianapolis strip club