Warrant Served for 'Various Alleged Tax Fraud Violations' at Envy Nightclub

A troubled Minneapolis nightclub was served with a search warrant.

Envy is under investigation for alleged tax fraud violations. The City of Minneapolis has been working to close the downtown club since early August.

The Department of Revenue Commissioner tells KSTP, a team of 12 auditors and two police officers spent three hours searching the club Thursday.

They took sales records, bank receipts, cell phones and computers for evidence that could help in their investigation.

Officials say they found evidence of possible violations by both the club and its owners James and Shelly Beamon, involving improper filing of tax returns and sales tax records.

The City of Minneapolis has recently had issues with Envy. In an effort to fight crime downtown, the city threatened to revoke Envy's liquor license.

City officials say violations at Envy include intoxicated patrons fighting, issues with security, and underage patrons without wristbands being served alcohol.

Envy's owner agreed Thursday to withdraw the club's Minneapolis On Sale Liquor License. The license withdrawal will become effective Nov. 12.

KSTP went to the Beamons' home Friday hoping to get a response, but no one came to the door and our calls were not returned.