CHARLOTTE, NC (WBTV) - Federal documents filed Tuesday show that the owner of a Charlotte club has agreed to a deal to close the club down and accept jail time and probation for tax crimes. He also agrees not to have anything to do with a club while he is in jail or on probation.
Adolph R. Shiver, owner of Club 935 on S. Summit Avenue, agreed to a sentence of nine months in prison followed by nine months of home confinement, two years of supervised release and 50 hours of community service.
According to the documents, Shiver agreed to pay $28,635 in restitution, a fine of $25,000 and $100 for each of two convictions. He also agreed to "close and dissolve" Club 935 and not to manage, own or operate a nightclub during his incarceration or supervision.
"The transfer of the $50,000 of "sting" money was delivered to Defendant Shiver at his business, Club 935, and he agreed to launder the funds through his business accounts," the documents state. "In addition, the Defendant's current tax crime relates to his income derived from his businesses. Thus, there is a significant nexus between the Defendant's crimes and his businesses, including Club 935."
Over the past few years, Club 935 has been at the center of numerous shootings and assaults, including two homicides. It had some neighbors demanding change.
On August 12, community association president Shannon Hughes held a meeting with Wesley Heights residents and Charlotte-Mecklenburg Police, trying to get rid of the club.
Just three nights later, the NC ABC Commission suspended the club's alcohol permits, citing sworn statements from law enforcement from an August 7 shooting - and a history of violence - as their reason. The club had reportedly held the permit since 2009.
WBTV's news partner The Charlotte Observer reported back in November 2014 that Shiver was charged with money laundering and tax fraud after he was allegedly caught on tape and video agreeing to launder around $50,000 in drug money offered to him by a "well-known trafficker" who was acting as a DEA source in November 2013.
The documents filed Tuesday shed more light on those recordings and texts between Shiver and the DEA source, identified only as "CS."
"I want to clean my money. I want to be able to spend it. I gotta give you 50 and I'll get 40 back, whatever. I just want to get it back clean, I'm good if I can spend it," the DEA source told Shiver at one of their meetings. Shiver replied, "Alright."
At one point in a conversation from January 9, 2014, after the DEA source shows concern about not hearing from Shiver in some time, the club owner said that he had received a letter from the IRS and was worried about audits.
"They're gonna say, who you sending 50 thousand dollars to? ... No, I can get your money back... I'm not trying to keep your money..." the documents state.
The DEA source responded to Shiver, saying, "No that's the whole point, they don't want it back in cash, I could have did that... They just want to clean the money."
Shiver then responds, "I understand." The document state he then said, "Going to be honest with you, I do what I do... something happens to me... I'm going to jam you up."
According to the documents, Shiver "has argued that, while he accepted the $50,000, believing it to be from an unknown "specified unlawful activity," he did not believe that it was from the particular SUA of drug trafficking. The United States submits that the conversations between Defendant Shiver and the CS never referred specifically to drugs."
Shiver is scheduled to appear in a federal courtroom for sentencing on August 27.
WBTV spoke with a resident of the Wesley Heights neighborhood who says he's excited the club is expected to close.
"I'm looking forward to not having to explain to my kids why there's gunfire in our neighborhood anymore. That's just something no parent wants to deal with," said Shy Goldstein.
"It's very encouraging to hear this happening, but now it's up to the landlord to do the right thing and bring in a business that will be beneficial to the neighborhood instead of another problem," he continued.
Shiver is facing charges of money laundering and fraud and false statements.