Fallout Continues for Ciprianis

The New York State Liquor Authority may move to revoke the Cipriani clan's liquor license in the wake of Arrigo Cipriani's July guilty plea to felony tax evasion. Top SLA attorney Thomas Donahue told The New York Post that state law forbids felons from selling alcohol.

The last hope is a pardon from Governor Eliot Spitzer or special permission from the sentencing judge or the parole board. Giuseppe Cipriani, Arrigo's son and the president and C.E.O. of Cipriani USA, pleaded guilty to a misdemeanor tax-evasion charge. The two created sham deductions to avoid paying more than $10 million in taxes.

The Ciprianis are also facing problems with their venue in the Toy Center on Fifth Avenue at 23rd Street, where the landlords say the use of the building's lobby as event space is trespassing, according to a detailed report in The Observer.

The family corporation owns some of the city's top event venues, including the Rainbow Room, Cipriani 42nd Street, and Downtown Cipriani.