And Wonkette has the story. It’s pretty salacious stuff and it implicates more than Craig:
It was late in the Spring of 1987, and Phillips was a graduate student at George Mason University. “One of my favorite hangouts was The Follies,” Phillips explains, referring to the notorious and now-closed go-go boy bar La Cage aux Follies on Capitol Hill. “There were so many closeted neocons who trolled for cock and ass there, particularly cock and ass on younger men: Terry Dolan, Jon Hinson, and a bunch of other men who seemed to run in a close and secretive group. I had sex with some of them at The Follies, and I even went home with a couple of them — at different times, at least — based on smooth talk and their attraction to a 20-something geek. One of them I would later recognize as Larry Craig.”
No one familiar with the underground gay Republican circles in DC are the least bit surprised by this.