Not Gonna Take It Anymore!"
Rick Rizzolo's lawyers file
Opposition to EVERYTHING!
We’re Not Gonna Take It
We Ain’t Gonna Take It
We’re Not Gonna Take It Anymore
Way! - Twisted
Paola M. Armeni
Dominic P. Gentile
INSIDE VEGAS by Steve Miller
November 15, 2010
LAS VEGAS - They're as mad as hell, and
they're not gonna to take it anymore! Convicted racketeer Rick
Rizzolo's newest legal team consisting of Paola
Armeni and Dominic
Gentile on November 10, filed a brilliantly written ten
page Opposition to just about everything the government and beating
victim Kirk Henry have been suing the former Crazy Horse Too strip
club owner over since this case was transferred to United States Federal
Court in 2006.
In their OPPOSITION
TO MOTION FOR SUPPLEMENTAL PROCEEDINGS AND REQUEST TO VACATE HEARING
ON SUPPLEMENTAL PROCEEDINGS (emphasis
added); COUNTERMOTION TO REQUIRE THE GOVERNMENT TO SPECIFICALLY PERFORM
THE TERMS OF THE PLEA AGREEMENT; and REQUEST TO STRIKE THE ILLEGAL
MODIFICATION OF SENTENCE, Armeni and Gentile claim:
entered into a plea agreement with the United States of America on June
1, 2006. As a part of the Plea Agreement, Mr. Rizzolo agreed to pay Kirk
Henry ten million dollars in restitution 'upon the sale of the Crazy
Horse Too.' "
the court sentenced Mr. Rizzolo to '12 months and one day...followed by
a three-year term of Supervised Release under the standard terms and conditions
of supervision and the following special conditions: that restitution
to Kirk Henry of $10 million dollars be paid from the proceeds of the sale
of the Crazy Horse Too.' "
Rizzolo was sentenced, the court forfeited the Crazy Horse Too to the Government.
As the new owner (emphasis
added) of the Crazy Horse Too, the Government was responsible for
selling the property. To date, the Government has failed to sell
the Crazy Horse Too. During the time the Government has owned the Crazy
Horse Too, its value has gone from approximately thirty three million
dollars to merely a fraction of that amount. This diminution in valued
is primarily due to the Government's failure to maintain necessary
licenses and zoning permits."
"On April 26th
2010, the court heard argument regarding the request to 'modify conditions
or terms of supervised release.' At the hearing, the court determined
that Mr. Rizzolo's payment of restitution was no longer based 'upon the
sale of the Crazy Horse Too.' The court said '...assuming the Crazy
Horse Too asset is never sold for value or never sold for sufficient value
to satisfy the restitution obligations of Mr. Rizzolo, does not relieve
Mr. Rizzolo of the restitution obligations imposed by the Court in the
judgment.' The court went on to order that 'Mr. Rizzolo commence
-- independent of the sale of the Crazy Horse Too -- commence paying restitution
obligations at a rate to be approved by the Court once the financial information
is gathered by the Department of Probation.' After the court determined
that restitution was no longer contingent upon the sale of the Crazy
Horse Too, the Government brought a motion for supplemental proceedings.
The hearing on the motion is currently set for December 17, 2010."
Armeni and Gentile continue: "The
Government is not entitled to any more than that for which it bargained.
Here, the Government bargained for an asset worth thirty three million
dollars. The Government received the asset. Now, due to the Government's
negligence in maintaining the value of the asset, it wants more. However,
as Mr. Rizzolo has fulfilled his end of the bargain, the Government is
not entitled to any more."
Ms. Armeni and Mr. Gentile's first complaint
is with the federal court's demand that Rizzolo appear on December 17 for
a Judgment Debtor Exam ("Hearing on supplemental
proceedings"). They say they want the court to "vacate
(the) hearing" that will include the following Declaration from
the U.S. Attorney's Financial Litigation Unit stating Rizzolo owes over
$11,973,440 to the government (not including what he owes Kirk Henry):
And then there's this:
Document 480 Filed 10/06/10 Page 1 of 3
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
KIRK AND AMY HENRY,
Plaintiffs, Case No. 2:08-cv-00635-PMP-GWF
FREDRICK RIZZOLO, aka RICK RIZZOLO, et al.,
BACKGROUND AND DISCUSSION
Defendant Rick Rizzolo has also acknowledged that he is
legally obligated to pay the $9 million from his other assets if it cannot
be recouped from the sale of the business.
DATED this 6th day of October, 2010.
GEORGE FOLEY, JR.
U.S. MAGISTRATE JUDGE
At the December 17 hearing, Rizzolo is
expected to be forced to reveal the amount and location of assets he hid
in off shore banks with the
help of the brother of a federal court judge. He is also expected to
be asked the whereabouts of two million dollars he was scheduled to receive
Piazza for the sale of the Philadelphia Crazy Horse Too.
Armeni and Gentile's second complaint is
that the government botched the sale of the Vegas Crazy Horse Too and devalued
it's worth from "approximately
thirty three million dollars to merely a fraction of that amount." They
then had the audacity to write that the government had the obligation to
run the skin joint in order to maintain its business license and adult
Needless to say,
the United States of America had no obligation or interest in running a
topless bar, especially one that according to the U.S.
Department of Justice made its money by the participation: "...
in acts of extortion and threats, access device fraud, wire fraud, and
mail fraud. 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. Dancers
also sought to defraud customers by overcharging customers. Incidents involving
overcharges to customers frequently involved the use of credit cards or
other access devices. Conspirators also sought to have The Crazy Horse
Too defraud the State of Nevada of unemployment taxes and workers compensation
insurance companies of premium payments by the under-reporting of employees’
And about that supposed
worth of "Thirty three million dollars,"
during the year and a day Rizzolo spent in federal prison, his cell mate
told INSIDE VEGAS that Rizzolo was granted cell phone privileges so he
could participate in the purported "sale"
of the Crazy Horse Too; a converted 1960's era warehouse located in a seedy
neighborhood next to the tracks.
In a highly suspicious
action, an assistant U.S. Attorney failed to get the court to keep secret
all the purported "numerous offers"
of tens of millions of dollars Rizzolo was reportedly receiving:
INSIDE VEGAS received copies of all purported
offers and investigated each one finding that all had connections to Rizzolo
or his associates in Newport Beach, California, or were financially unable
to perform without hidden investors.
|The United States Department of Justice, District of
Tuesday, January 23, 2007
Additionally, defendants’ plea agreements require The
Power Company, Inc. to sell The Crazy Horse Too by June 1, 2007. The
Government has the right to disapprove the sale if the buyer is a close
relative or ongoing business partner of Rizzolo’s (emphasis added),
is a felon, or has business dealings with organized crime members or groups.
To confirm that the "numerous
offers" had no merit, the following October 4, 2007 confidential
letter from one of Rizzolo's attorneys was faxed to a representative
of Steve Wynn. It ominously admits that "...no buyer has performed its
contract," "...its contract had rescinded," or "...has failed
So much for the Government
being responsible for not selling the property! Without continuing
Rizzolo's methods of operation, it was un-saleable!
How about the Government
having to accept an "interim operator"
to maintain the bar's business license and zoning?
That question was
answered on April 18, 2007 when the following statements were made on the
record to the LV City Council in regard to Rizzolo's chosen "interim
operator," Mike Signorelli:
person could draw the conclusion that Signorelli is simply running the
business for Rizzolo, who is forbidden to do so."
- Sgt. Ray Alexander, L.V.M.P.D.
may be doing his best effort to keep Rizzolo out, but it's happening anyway."
"He can't run this business without being influenced by Rizzolo's people."
- City Attorney Brad Jerbic
Even though the City Council granted Signorelli
a license, the license was permanently
revoked two and a half months later when it was confirmed that Rizzolo's
family members were still in control of the business.
And for "the Government's
failure to maintain necessary licenses and zoning permits," this is
Vegas City Attorney Brad Jerbic had to say just before the bar's business
license was revoked:
"On June 1, 2006,
The Power Company, Inc. pled guilty in federal court to one count of Conspiracy
to Participate in an Enterprise Engaged in Racketeering Activity between
January 1, 2000, and 2005. Frederick Rizzolo and 16 of his employees
also entered guilty pleas to federal felonies. The charging documents
pled to, as well as the plea memoranda in support of the guilty pleas,
describe the actual business activity of Crazy Horse Too as constituting
a public or private nuisance (emphasis
added) in that the business of Crazy Horse Too was conducted in an unlawful,
illegal or impermissible manner. On August 1, 2006, The Power Company,
Inc. answered the disciplinary complaint and admitted that the government
would have sought to prove at trial 35 to 40 beatings had occurred at
Crazy Horse Too in three years."
No wonder the bar's business license was
revoked! The city had no other choice. It's complete nonsense for
Armeni and Gentile to try to blame "the Government"
for the devaluation of the Crazy Horse Too. It was a toilet -- an environment
of crime and violence, and now stands derelict as a symbol of the proper
action of Government, not of its failure!
The third complaint Armeni and Gentile
make in their Opposition is that the Government has no right to modify
Rizzolo's conditions of parole.
The lawyers object mainly to the words
Attorney who on October 1, informed the court: "In
the instant case, the Government has no opposition to the Court initiating
supervised release revocation proceedings based on information and materials
contained in the Henrys' filing."
Rizzolo's parole is scheduled to end in
April, 2011. However, he has not lived up to two or more of his conditions
of release including to pay restitution to Kirk Henry, and to pay the IRS,
hence the U.S. Attorney's lack of opposition to Rizzolo's parole being
either extended or revoked.
Four questions remain unanswered.
(1) Was the forfeiture to the Government
following Rizzolo's failure to sell the property considered a "sale?"
(2) Will the federal court seize Rick and
Lisa Rizzolo's passports?
(3) Does the federal court's Order of Oct.
6, 2010 that "Defendant Rick Rizzolo has also
acknowledged that he is legally obligated to pay the $9 million from his
other assets if it cannot be recouped from the sale of the business"
make the "sale" requirement
a moot issue, especially now that Rizzolo acknowledges that there is a
(4) Will the federal court require Rick
and Lisa Rizzolo to "repatriate"
their off shore stash so the IRS and Henry can finally be paid and preclude
Henry from having to go to trial with his costly Uniform
Fraudulent Transfers Act case? And if the Rizzolos refuse (according
to Rizzolo's plea agreement, he cannot declare bankruptcy), will the court
have the gumption to jail one or both for contempt until they cooperate?
After five years of litigation in federal
court, and almost ten years since Kirk Henry's neck was broken over a disputed
$88 bar tab, will Rick Rizzolo, Lisa Rizzolo, Paola Armeni, and Dominic
Gentile get the last word?
Or will Federal Judges Philip Pro, George
Foley, and Peggy Leen, along with U.S. Attorney Daniel Bogden, the IRS,
Kirk Henry, and the American public have the last word and be the ones
who finally proclaim, "WE'RE
-- Not Gonna Take It Anymore!"