Pharaoh’s Gentlemen’s Club owner keeps defense team on taxpayers’ dime

BUFFALO, N.Y. (WIVB) – Peter Gerace, the indicted owner of Pharaoh’s Gentlemen’s Club, owned a 3,600-square-foot house in Clarence decked out with marble counters, a gym, full basement and bar, walls full of signed sports memorabilia, and a salt-water pool with a 10-person hot tub.

Today, he’s almost penniless.

Gerace, who is charged with conspiracies to commit sex and drug trafficking and seven other crimes, told the judge Thursday that he can no longer pay his attorneys.

He sold his house in 2023 for $1.15 million and received unknown amounts for a large collection of sports and movie memorabilia that hung on the basement walls.

And his club is not as profitable as it used to be.

As a result, U.S. District Judge Lawrence Vilardo kept Gerace’s two-attorney team intact, but their compensation will be covered by taxpayers, which is common when a defendant is unable to pay attorneys.

Also on Thursday, the court announced that a juror fell ill. On Friday, the court decided to replace the juror with a substitute. The jurors shredded their notes and will start deliberations over.

Gerace’s trial has surpassed the two-month mark, with numerous delays and pauses.

Jury deliberations to begin in high-profile trial for Pharaoh’s strip club owner

A few weeks ago, a juror fell and required stitches. And before that incident, a juror’s wife had a medical emegency that required his attention.

The court several times had to send jurors home early because of scheduling conflicts.

On Dec. 6, Vilardo abruptly stopped the trial to allow Gerace’s attorneys to argue why an email critical of one of the government’s key witnesses should have been admitted as evidence.

One of Gerace’s ex-wives sent the email, warning the government to reconsider using Gerace’s third ex-wife as a key witness due to concerns with her credibility.

Eric Soehnlein, one of Gerace’s attorneys, said he wanted to ask whether any of the prosecutors or federal agents followed up on the contents of the email.

“I don’t see the relevance of it,” Vilardo said on whether the government followed up on the email.

The government used both ex-wives for witnesses, although the one who wrote the email turned combative with prosecutors. She was asked about cocaine use with Gerace, to which she said he never sold it to her. She answered a similar question with a raised voice: “He didn’t get me cocaine. I used it with him. He’s not a drug dealer so I’m not sure where he got it from.”

That led Assistant U.S. Attorney Joseph Tripi to ask: “Oh, because it’s free? Is that what they teach you in school?”

“No. He’s not a drug dealer,” she answered.

Vilardo ruled to exclude the letter from bEing admitted as evidence.

The two sides also argued over whether certain testimony should be allowed from two inmates once jailed in the same facility as Gerace. Both had proffer agreements with the government that can result in benefits, such as reduced sentences, in exchange for their cooperation and testimony.

Both inmates testified, but the judge limited what prosecutors could ask them under oath.

These trial hold-ups frustrated some witnesses, including former Pharaoh’s bouncer and part-time manager Douglas Augustyniak, who yelled at prosecutors in the hallway because his testimony was delayed four times while he waited in a witness room.

Prosecutors did bring in Augustyniak to testify on his fifth court appearance, but he, too, had tense moments with prosecutors.

At one point, Augustyniak turned to the judge to complain about Assistant U.S. Attorney Nicholas Cooper’s line of questioning.

Vilardo instructed him to answer Cooper’s questions, and if he didn’t have an answer, to reply “I don’t recall.”

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Dan Telvock is an award-winning investigative producer and reporter who has been part of the News 4 team since 2018. See more of his work here and follow him on Twitter.

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