INSIDE VEGAS by Steve Miller
October 5, 2009
Las Vegas - There are times in every sporting
man's life when he needs a "Protector." In the case of convicted Vegas
racket boss and former Crazy Horse Too topless bar owner Rick Rizzolo,
his "Protector" may not be the kind some people think of when the word
John Dawson, Protector
It's not often when a prominent attorney
from a prestigious law firm such as Lionel
Sawyer & Collins (LS&C) calls himself a "Protector." But at
the bottom of this 2007 document, LS&C attorney John Dawson proudly
used that very fitting word to describe himself when he knowingly authorized
an unsecured "loan" of $400,000 to a convicted racketeer. In this instance,
after he placed ill-gotten assets out of reach of an unpaid beating victim
and the IRS, the unusual legal term fits Dawson like a -- pardon the pun
-- Everlast Protector.
The only problem is that Rick Rizzolo is
not the only one who needs a "Protector." I believe Dawson blatantly kicked
the taxpayers and unpaid
beating victim Kirk Henry in an unprotected part of the anatomy when
he hid tens of millions of Rizzolo's ill-gotten dollars in off shore accounts
out of reach of U.S. forfeiture laws.
I also believe that Dawson, an Adjunct
Professor of law at Community College of Southern Nevada, is setting a
horrific example for his students by doing work for a well known criminal
and conversely causing further harm to Kirk Henry who was rendered a quadriplegic
in October 2001 after his neck was broken by a Crazy Horse Too manager
for disputing an $88 bar tab.
According to the Las
Vegas City Manager, Henry's was only one of "35 to 40 beatings (that)
had occurred at Crazy Horse Too in three years." The criminal activity
resulted in the convictions of Rick Rizzolo and fifteen of his former employees.
“With today’s sentencings, the Court wrote
the final chapter of defendant Rizzolo’s long control over what many believed
was an impenetrable criminal enterprise involved in violence, fear and
fraud," said U.S.
Attorney Daniel Bogden.
"The Power Company, Inc. must also forfeit
$4.25 million, acquired unlawfully from racketeering activity or unlawful
debt collection at The Crazy Horse Too."
"If patrons refused to pay a dancer or
disputed charges, the shift manager or other male employees sought to extort
payment from them through threats of violence and through the actual use
of force," stated Bogden.
For the past eight years Kirk Henry has
tried to support his family while fighting for his life and the remainder
of his $9 million dollar settlement. He received $1 million from the Rizzolo's
insurance in 2006. Since then it's believed that the Rizzolos are stalling,
waiting for Henry to die, or settle for a much smaller amount in order
to pay his medical bills, and college tuition for his children.
I believe this case is a well orchestrated
Here's a list of Rick and Lisa Rizzolo's
current court ordered debts:
|All of the United
States Marshals Service's costs, expenses, and private counsel's attorney
fees for the real property transaction related to the care and the sale
of the Property and the Trademark and Trade name Crazy Horse Too, including
but not limited to the maintenance, the protection, the repair, the service
of process, the publication, the utilities, the insurance, the CB Richard
Ellis real estate commission, the escrow, the closing costs, the real estate
transfer tax, private counsel's attorney fees for the real property transaction,
The Clark County
Taxes owed on the Property with penalties and interest
The City of Las
Vegas sewer lien
The Security Pacific
Bank ($5 million dollar) loan with attorneys' fees, penalties, and interest
of US $9,000,000.00 plus interest to Kirk and Amy Henry
of US $1,734,000.00 plus accruals to the IRS
The assessment of
US $500.00 plus interest
The fines of US
$750,000.00 plus interest
The forfeiture of
US $4,250,000.00 plus interest
The City of Las
Vegas judgment lien of US $2,192,000.00 plus interest
The IRS tax lien
against Rizzolo for the 2006 individual income taxes of US $1,032,535.26
According to Lisa's
Deposition, she seemed totally unaware of how much of her husband's
money John Dawson stashed in a Cook Islands bank -- which begs the question,
did Dawson knowingly participate in the fraudulent transfer of assets derived
through a criminal enterprise?
But $400,000 was not the only "loan" Dawson
approved for Rick Rizzolo. According to Lisa's Deposition,
on November 5, 2006, Dawson happily approved another $200,000 unsecured
"loan" to Rick who is regularly seen squandering
tens of thousands cash in local clubs and casinos.
It's amazing that John Dawson can approve
unsecured personal "loans" to a chronic gambler when the money should be
going to pay court ordered debts! (Hello... Internal Revenue Service...
Is anybody there?)
In the Deposition
when attorneys for Henry asked Lisa, "And what was the balance in the account?"
She answered, "I don't know exactly." The attorney then said, "Ballpark
it." Lisa unassuredly answered, "Six million (?)"
Her vague answers to questions about the
$600,000 in "loans" were equally unrevealing, especially when she couldn't
confirm if they were ever paid back! (When is the U.S. Department of Justice
going to indict this woman as a co-conspirator?)
Lisa gave the vague answers about her uncertain
bank balance back in June 2009. Since then, new information has surfaced
indicating her answer was either naive, or very disingenuous. The amount
of cash Dawson stashed in the Cook Islands is suspected of being far more
than $6 million. Qualified
estimates have it at around $17 million or more!
So how did the divorced
couple get away with hiding so much from the IRS and Kirk Henry for
For this to happen, it's obvious John Dawson
is not the only "Protector" the Rizzolos have.
I believe John Dawson's brother U.S. Federal
Judge Kent Dawson and Kent's mentor U.S. Senator Harry Reid may also have
had a hand in protecting the Rizzolo family jewels and cash.
The "Protectors" clearly have tentacles
(correct spelling) in the Federal Government, or the Internal Revenue Service
would have had Rick and Lisa Rizzolo for lunch by now!
Remember, at one time Rick
Rizzolo was one of the biggest political campaign contributors and fund
raisers in Nevada. And Nevada has the weakest campaign reporting laws
in the nation, so cash flows freely during our elections. (I can personally
attest to collecting $80,000
in cash from casino owners in one day of fund raising during my failed
U.S. Judge Kent Dawson
U.S. Senator Harry Reid
In September 2007, I broke the story of
Dawson Brothers and what may be one of the biggest conflicts of interest
in Nevada history.
I told of attorney Dawson's brother the
Federal Judge being assigned to preside over the trials of 16 Crazy Horse
Too defendants. Of how the judge threw conflicts of interest to the wind
while his brother the asset protection attorney was busy setting up the
"LISA M. RIZZOLO SEPARATE PROPERTY TRUST," the "LMR TRUST," "LIONS LIMITED
PARTNERSHIP," "RILI LLC," "DOMOLE LLC," and "RLR TRUST," and
became Rick Rizzolo's Resident Corporate Agent for "THE POWER COMPANY,
INC." all while his brother the judge never uttered a word about the relationship
during 16 criminal trials of Rizzolo's employees.
Attorney Dawson set up these trusts and
hid the couple's money off shore even though Rick Rizzolo's criminal activities
page news at the time. Dawson had to know how his clients made their
In the meantime, John Dawson just completed
lecturing at the The
Southpac Offshore Planning Institute ~ The 2009 Annual Conference ~ Encore
at the Wynn Las Vegas, October
1 & 2, 2009.
Here's how Southpac touted his lecture:
1:30pm - 2:15pm
Asset Protection Trusts: Do They Really Work?(John
E. Dawson ~ Lionel, Sawyer & Collins)
Southpac helped introduce
the world's first asset protection trust law in the Cook Islands in 1989.
Over the past twenty years, this legislation has served as a model for
similar laws in over a dozen other countries, and now several U.S. states
have implemented their own protective statutes. Mr. Dawson will analyze
the state and federal legal issues affecting domestic planning, the constitutional
concerns, and the potential for attorney liability if things go wrong.
Special attention will be directed at Nevada’s own domestic asset protection
I've not yet heard if Dawson's Rizzolo
off shore trusts served as a model of "Domestic Asset
Protection Trusts: Do They Really Work?" Or possibly served as a model
of "the potential for attorney liability if
things go wrong."
I bet no one publicly asked the "Protector"
how a federal case can take so long to resolve? Or how a criminal can protect
his money from the IRS in Cook Islands accounts? Or if someone with connections
in Washington, DC is running interference for the Rizzolos while Lionel
Sawyer & Collins and Southpac Offshore Planning Institute cash in for
their asset protection services?
According to my September
2007 INSIDE VEGAS, the "Protector's" brother Kent was a humble Henderson
Justice of the Peace until 1999 when Senator Harry Reid appointed
the then-inexperienced jurist to the Federal Bench for life. With a
Federal Judge as a brother, attorney John E. Dawson was soon recruited
into the politically powerful Lionel Sawyer & Collins firm where he
now enjoys status as a stockholder, and enjoys a list of prestigious clients
including the Rizzolos.
To add to their stature, Lionel Sawyer
& Collins is honored to have two of Senator Reid's sons as partners
("Protectors?") and fellow stockholders with John Dawson. It's currently
not known how much Dawson and Southpac charged the Rizzolos to protect
their fortune, but some estimate the legal fees amount to hundreds of thousands
Now, is it pay back time for the Dawsons,
Reids, and LS&C?
What makes this all so highly disturbing
is that at the same time Judge Dawson's brother was hiding the Rizzolo's
cash, Judge Dawson defied
Federal Prosecutors by handing down feather light sentences to all
of Rizzolo's former employees, even after some pleaded guilty to crimes
including racketeering, tax evasion, robbery, and extortion; and after
Federal Prosecutors asked for harsh sentences; and after a member of the
York Crime Commission testified about several of the defendant's mob
So it's not a stretch of the imagination
to conclude that some very heavy political juice is behind the Rizzolo's
uncanny ability to avoid paying their court ordered debts and keep their
But what surprises me most is that the
IRS has not stepped in to collect their (our) over $7 million in forfeitures,
liens, accruals, interest, and unpaid individual
I wonder what the
IRS would do to me if I welched on paying my taxes for over three years?
Oh, I forgot. My attorney is not the brother of a Federal Judge who was
appointed by the United States Senate Majority Leader. And I also forgot
to mention that Senator Reid is the business
partner of Rick Rizzolo's former Corporate
Resident Agent and Crazy
Horse Too attorney, Jay Brown.
That's how incestuous
this case has become!
But never discouraged,
Kirk Henry's attorneys smell blood in the water:
Document 1 Filed 05/16/2008 Page 3 of 7
FIRST CAUSE OF ACTION
(Conspiracy to Defraud)
7. Beginning on or
about May 24, 2005, the Defendants Rick and Lisa Rizzolo together, and
with each other and with third persons acting in concert with them (believed
to include attorneys and accountants whose names are not presently
known but who will be added as parties once their identities are confirmed)
did combine, conspire, confederate and agree together and with each
other to defraud the Plaintiffs and each of them.
13. In an overt act
in furtherance of the conspiracy, Rick Rizzolo and Lisa Rizzolo,
together with third parties believed to include attorneys and accountants
(whose names are not presently known but who will be added as parties once
their identities are confirmed), formed a so-called “family trust”
and thereafter transferred their assets into the same in an attempt
to shield the assets available to compensate the Henrys for their catastrophic
I can't wait to find out who those parties
are "once their identities are confirmed," especially the attorneys ("Protectors")!
And there's this recently filed Motion
awaiting the Federal Court's decision:
Document 200 Filed 09/24/2009 Page 1 of 8
As to the Third Cause
of Action, for (a) avoidance of the transfer or obligations assumed by
the Rizzolos and/or their family trust and/or their so-called "separate
property trusts" in their various forms to the extent necessary to satisfy
claims of the Henrys; (b) an attachment and/or garnishment against assets
transferred; (c) an injunction against further disposition by the
Rizzolos of assets transferred or otherwise possessed; (d) for appointment
of an examiner or, if necessary, a receiver to take charge of the Defendants'
assets; (e) any other relief which in the circumstances should be afforded.
FULL COMPLAINT: http://www.stevemiller4lasvegas.com/KirkHenrys2ndAmendedComplaint9-24-09.pdf
Kirk Henry's attorneys on September 30,
2009, also filed a Motion
requesting Rick Rizzolo's secret financial information from the Department
of Parole and Probation.
With all this activity, it still puzzles
me why the IRS continues to remain silent on this case? Maybe Senator Reid
knows the answer.
But the true test may take place this Wednesday
when Rick Rizzolo is brought before Federal Magistrate Judge George Foley
on a Contempt Motion.
|Full docket text
for document 198:
ORDER re  MOTION
for Hearing re: Motion to Reveal Pro Se Litigant Rick Rizzolo's Ghost Writer;
Request for Verification Pursuant to FRCP 11; Alternatively for Contempt
filed by Kirk Henry. Motion Hearing set for 10/7/2009 at 02:00 PM
in LV Courtroom 3A before Magistrate Judge George Foley Jr. Defendant Frederick
Rizzolo aka Rick Rizzolo is ORDERED to appear in person at the hearing
on 10/7/09 at 2:00 PM. Failure to appear may result in the granting of
the Plaintiff's motion to reveal and request for sanctions. Signed by Magistrate
Judge George Foley, Jr on 9/16/09. (Copies have been distributed pursuant
to the NEF - ECS; cc: Frederick Rizzolo)
INSIDE VEGAS will report the outcome of
the Contempt hearing in next week's column.
If Judge Foley finally hands down some
justice in this protracted case, I hope Rick's "Protector" is handy. Rick
may need one if he's sent back to prison for making such a mockery of the
federal judicial system.