The Howard County Alcoholic Beverage Commission voted to deny renewal of the liquor license for Little Daddy’s Show Club, but it could be months before the business stops dispensing alcohol.
The Indiana Alcohol & Tobacco Commission was asked to rule on the renewal request by owner Dan Dumoulin II when the local board deadlocked on a decision. The state board sent the case back to Howard County.
The board voted unanimously Thursday not to renew the license based on the finding that Little Daddy’s, 1527 S. Home Ave., is a public nuisance and Dumoulin is of poor moral character.
Maj. Robert Poindexter, with the Indiana State Excise Police, said the local ruling will be considered by the Indiana Alcohol & Tobacco Commission in November. The state board can either uphold or overturn the local decision.
If the state board upholds the local decision, Dumoulin may appeal and the club can continue to sell alcohol.
Little Daddy’s current liquor license is set to expire on Dec. 2 and a new renewal application will have to be filed after that date.
Poindexter said if the renewal is ultimately denied, Dumoulin will have to apply for a new liquor license for Little Daddy’s.
Dumoulin was charged in September with six felony counts of promoting prostitution and two felony charges of corrupt business influence involving Little Daddy’s Show Club and Big Daddy’s Show Club.
Mark Webb, Dumoulin’s attorney, asked for a continuance until the criminal charges are resolved, a request denied by Poindexter.
Webb objected to using the charges against Dumoulin in the proceedings because there were no witnesses at the hearing to testify about the allegations.
“We decline to discuss the allegations,” he said. “The proper place is in a criminal court.”
Dumoulin attended the hearing but didn’t offer any testimony. His mother, Joan, testified about the conduct of employees.
She said every dancer is required to provide identification, which is photocopied, and is required to sign a contract. The contract spells out the dancers are not to provide sexual favors, prostitute themselves or use drugs.
Joan Dumoulin identified photographs of the inside of Little Daddy’s stating the VIP room where patrons were charged $10 for lap dances has been removed and the inside of the club is now a large, open area.
She said the doors leading to the bathrooms were cut to allow bartenders to see if two people were where only one should be.
Dumoulin said the people making the allegations against her son were seeking plea agreements with the prosecutor’s office on other pending cases.
“This is an ongoing thing,” she said. “It’s a political situation. There are people that want to take his business away.”
Nate Tilloe, who oversees the bartenders at the three clubs owned by Dan Dumoulin, said there is a dance code for the dancers.
He said patrons are allowed to touch the dancers on uncovered areas and that dancers have been fired for inappropriate behavior.
Dave Fettig, a security guard at the clubs, said he has witnessed inappropriate behavior of a sexual nature between the dancers and patrons.
“I tell them to get dressed and go home,” he said. “I then tell Dan [Dumoulin] so they can be terminated.”
Rick Deyo, a local businessman, asked the board to revoke the license under the moral character, public nuisance and criminal offense portion of the state law.
“We now have police and prosecutor involvement,” he said. “The laws need to be followed and enforced.”
Deyo said the license renewal should be denied for the safety of county residents and the image of the community.
Webb said Dumoulin’s business is only as strong as the weakest person who works for him.
“There have been a lot of problems with his establishments,” Webb said. “Nothing that [says] Dan endorses or condones this behavior [is] in the probable cause. He is trying to do more to insure this activity doesn’t happen.”
Webb said it was unfair to “lower the boom” on Dumoulin and not give him the opportunity to answer the criminal charges.