TOLLAND — Kenneth Denning, the former owner of the Electric Blue strip club, was sentenced October 13 to 16 months in prison followed by three years of supervised release, the U.S. Attorney’s Office announced. U.S. District Judge Victor A. Bolden imposed the sentence in New Haven.
Denning, 69, of Holland, Massachusetts, pleaded guilty May 19 to five offenses involving prostitution, tax fraud and money laundering. This updates the earlier report of a scheduled hearing with an officially confirmed outcome.
The prosecution described a cash operation in which the club collected room-use fees while dancers separately negotiated payments with customers. Receipts were kept outside the income spreadsheets supplied to a tax preparer, according to the May plea announcement. Investigators estimated nearly $3 million in taxable receipts were omitted for 2020–2022.
The case also involved a $149,900 pandemic disaster loan obtained after a false certification about the business. Prosecutors said Denning transferred $20,000 to his personal account. He controlled the club through a holding company until its January 2025 sale; the conviction concerns that former operation.
At sentencing, Bolden ordered $549,999 in restitution to the IRS and $150,000 to the Small Business Administration. The October release also reports an agreed $1,525,842 forfeiture. The earlier plea release had described a $550,000 IRS restitution agreement and specified seized cash; today’s figures reflect the later sentencing announcement.
Denning remains released on a $250,000 bond and is required to report to prison November 17, according to DOJ. This report relies on the official plea and sentencing announcements; it does not establish a separate licensing decision or the club’s current operating status.