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 11-3-08
Inside Vegas - Steve Miller

Steve Miller is a former Las Vegas City Councilman. In 1991, the readers of the Las Vegas Review Journal voted him the "Most Effective Public Official" in Southern Nevada. Visit his website at: http://www.SteveMiller4LasVegas.com


Unsound bank files MOTION to foreclose
on Crazy Horse Too. Action inspires
the United States Government to
apply for a license to open
a gentlemen's club

Crazy Horse former owner's son
pleads guilty to Battery with
use of a deadly weapon

INSIDE VEGAS by Steve Miller
AmericanMafia.com
November 3, 2008

LAS VEGAS - On October 20, 2008, attorneys for California based Security Pacific Bank petitioned the United States Federal Court to allow them to foreclose on the shuttered Crazy Horse Too.

The bank's sudden MOTION inspired a surprise response from the United States Marshal's Service, the agency assigned the responsibility of selling the property at its highest value.
 
Case 2:06-cr-00186-PMP-PAL Document 248 Filed 10/30/2008 Page 1 of 6

The United States requires an additional thirty days to further consider and pursue the following options and endeavors:
(1) Commence negotiations with a potential purchaser(s);
(2) Apply to the City of Las Vegas for a tavern license and exotic dance use permit;

DATED this 30th day of October, 2008.
GREGORY A. BROWER
United States Attorney
/s/DanielDHollingsworth
DANIEL D. HOLLINGSWORTH
Assistant United States Attorney

For the second time since 1991 when the government attempted to run the Mustang Ranch Brothel near Reno, the feds are talking about asking a federal judge and local officials to grant the US Marshals permission to run a sexually orientated business in an attempt to recover millions in back taxes.

It's not known whether the feds if granted the licenses will actually run the business with adult entertainment for more than the minimum number of hours per year required by city law, but just their mention of doing so will inspire international news coverage on opening day, and the publicity might attract a legitimate buyer willing to pay the latest appraised price; $11 million with an operational liquor license. The bar's license was permanently revoked on June 30, 2007 which rendered the converted warehouse's value at only $7 million according to the feds.
 
The FBI clearly describes Security Pacific Bank's current situation in this DECLARATION: "On October 26, 2005, RIZZOLO signed a $5,000,000.00 in United States currency note which was secured against the underlying real property on November 3, 2005. The FBI has not been able to track or locate the $5,000,000.00 in United States currency."

Now the money is no where to be found, and the bank wants the taxpayers to bail it out of a loan they should never have made. They made the loan after being clearly warned that Rizzolo was facing federal prosecution.
 
Since hiding the $5 million, Rizzolo now appears to be flush with cash -- often seen squandering it in expensive night clubs and casinos. But in this sorry bank's case, the old adage "Forewarned is forearmed" now rings truer than ever!
 
"Based on our investigation and the information provided by RicRiz's representatives, we concluded that the allegations regarding Rizzolo's involvement in unspecified criminal activity were not verifiable, and that some of the rumors were affirmatively inaccurate. Accordingly, I and others recommended proceeding with the loan, which closed on November 3, 2005." - Gregory Alcala, 1st Vice President and Manager, Real Estate Loan Underwriting for Security Pacific Bank

In a 2007 court document filed by the bank, they complained:

Why should taxpayers be forced to pay for the "material misrepresentations made by borrower?"

The answer may lie in a July 15, 2008 ABC NEWS story that reported Security Pacific Bank is the 8th "Most likely to fail" in the United States.

Security Pacific made a sub-subprime loan to a crook, and are now paying the consequences. They're also not taking responsibility for their own actions when in their MOTION they whine: "In these perilous economic times there is no justification for forcing Security Pacific to sit on the sidelines while trouble in the credit market and banking and real estate industries destroys its assetís value. Over the course of the criminal and forfeiture proceedings against defendants in this action, the Crazy Horse has precipitously declined in value, losing 90% of its value since 2007, from as much as $48,000,000 then to likely less than $4,600,000 today."

But their MOTION to foreclose if granted will bring even more dire consequences to beating victim Kirk Henry who has been waiting since October 2001 for his court ordered $9 million dollar settlement to pay ongoing medical bills after he disputed a bogus bar tab and got his neck broken by a Crazy Horse manager for daring to complain.

Is there more to this story than meets the eye?

Back in 1991, former Las Vegas Mayor Jan Jones was alleged to be a stockholder in and director of Security Pacific Bank of California. Throughout her tenure as mayor, Jones repeatedly did favors for Rizzolo who is her Newport Beach neighbor. These favors included illegally permitting him to expand the Crazy Horse without proper zoning, and to illegally commence and complete construction of a 6,000 square foot addition without normally required building permits, or parking and traffic studies (See: Strip club pursues expansion approval - February 02, 1999, Las Vegas Review-Journal)
 
However, current Security Pacific Bank bosses unequivocally deny ever knowing Jones, and say they were not influenced by her. But the question still lingers as to whether Rizzolo was given special consideration?

Now the bank wants to sell the topless bar at a fire sale -- possibly to the same mobsters they foolishly loaned $5,000,000.00 in 2005! Security Pacific did business with the mob when they made the loan, and were fully aware of who they were dealing with. Therefore their MOTION could be designed to place the Crazy Horse back into the hands of the mob for pennies on the dollar.

How do I know this for sure? I was the one who tried to warn Security Pacific well in advance that they were about to make a mistake. Before they handed Rizzolo the cash, I emailed bank officials my "Rick Rizzolo Connection" website that included hundreds of then-current news articles about crimes committed at Rizzolo's place of business.

After they were exposed for their negligence, the bankers tried to blame me for providing "not verifiable" "rumors" that were "affirmatively inaccurate," based on their conversation with "RicRiz" criminal attorney Tony Sgro.

In the following DECLARATION filed with the Federal Court, the bank admits they reviewed the materials I provided:

In their MOTION, Security Pacific makes a fleeting mention of beating victim Kirk Henry as being a lessor priority than the bank's lost money. If U.S. Federal Judge Philip Pro grants the bank's MOTION, and if Mr. Henry is unable to locate where Rick and Lisa Rizzolo hid their money, he may never receive his court ordered $9 million dollar settlement.
 
When Rizzolo defaulted, the bankers didn't to go after him or his wife Lisa for the next three years, or go after the title insurance company to collect what they're owed. Now they want control of the real estate when Rizzolo personally guaranteed the loan and a title insurance policy was issued by Chicago Title to protect the bank. But the bankers are mysteriously ignoring both options, and adding insult to the injuries of Henry by trying to take proceeds from a sale that he should be in first position to receive.
 
Judge Pro has always tried to protect Mr. Henry's interest, and hopefully he will let the bank bail themselves out by going after "other assets."

In the bank's MOTION they briefly state: "Conversely, because the government can substitute other assets to satisfy defendantsí forfeiture agreement, the United States has less incentive to sell the Crazy Horse while it still retains what value it has."
 
If the government can substitute other assets, so can the bank!

In June, 2008, even Rick Rizzolo himself acknowledged his weak position if this occurs:

The above statement should be enough to inspire Security Pacific attorneys to immediately redirect their efforts into locating and seizing Rick and Lisa's hidden assets.

Then, if the US Marshals are successful in obtaining a Tavern License and Exotic Dance Use Permit from the city; opening the place for a few hours; then selling it for $11 million to someone with no mob ties, that money can be put into the pot and distributed to the Rizzolo's creditors along with what can be seized of their personal assets to pay the over $28 million they owe.

But that may not be the case. This would not be the first time the U.S. Attorneys for Nevada let down their guard and allowed a Rizzolo straw man to pretend to buy the club. In one instance, the straw man upon being approved immediately hired the entire Rizzolo family in managerial positions.

Other "approved" buyers were found to be phonies or had ties to Rizzolo or other organized crime figures. After numerous sources contacted INSIDE VEGAS and offered important information that I was able to confirm and publish about suspect "buyers," Assistant U.S. Attorney for Nevada Daniel Hollingsworth came up with the following request to the court to try to stop my efforts:

Thank goodness Judge Pro summarily rejected Hollingsworth's scheme to keep the public in the dark, or who knows what kind of people would be running the place today! Remember, Rizzolo made his money by having it beat out of customers, and others would love to resume his lucrative methods if the feds allow it to happen. Nevada's US Attorneys only seem interested in selling the property at top dollar and placing a feather in their caps.

In a shocking turn of events, US Attorneys for Nevada Gregory Brower and Daniel Hollingsworth on February 15, 2007 enjoined Security Pacific Bank in asking Judge Pro to remove Kirk Henry from being first in line to receive his $9 million dollar settlement from the sale of the Crazy Horse Too, and give the first sale proceeds to the bank. Unfortunately the court agreed with Brower and Hollingsworth, and consequently Henry was forced to go into expensive Discovery to try to locate Rick and Lisa's hidden assets.

Based on the above two examples, Brower and Hollingsworth have proven to be untrustworthy, and their motives are being questioned by many ovservers of this case.

If the US Attorneys are allowed to continue finding suspect buyers, I certainly hope the court maintains transparency in this case so citizens with inside knowledge can have as much input as they have in the past.

The public's safety and well being will be served if the names of potential buyers are published. When those buyers are listed in court records, I am very careful to make sure the information I pass on about them is accurate because these columns are read by everyone involved.

Hopefully, a legitimate buyer will surface, and the Rizzolo's financial obligations will begin being paid starting with Kirk Henry.

Dominic Rizzolo pleads GUILTY

One week before Rick Rizzolo's 26 year old son was scheduled to be Arraigned for stabbing a man during an aborted extortion attempt, it appeared as though it would take Dog the Bounty Hunter to bring him to justice.
 
Defendant not present. Mr. Powell stated the Deft. is in Florida and had a 
seizure and provided the Court with documentation. Mr. Powell further 
stated, the documentation stated the Deft. is restricted from traveling for 
at least 4-5 weeks and will have additional testing done. Upon the State's 
review of the medical documentation, COURT ORDERED, a status check for a letter from Deft's doctor. 

Sources at the Clark County Court House said Rizzolo's repeated excuses for not showing up in court were starting to offend District Judge Douglas W. Herndon, and Arraignment Master Kevin V. Williams.

On November 28, 2008, the illusive young Rizzolo finally made an appearance in court, and the following Felony Plea Agreement was entered:
 
Negotiations are as contained in the Guilty Plea Agreement FILED IN OPEN COURT. DEFT. RIZZOLO ARRAIGNED and PLED GUILTY to BATTERY WITH USE OF A DEADLY WEAPON (F). COURT accepted plea and ORDERED, matter referred to the Division of Parole and Probation (P&P) and SET for sentencing. Court directed Defendant to report to P&P immediately after court, or a Bench Warrant will issue. 
    
Mr. Sgro advised he had not received the medical records for Deft. yet. Mr. 
Pace stated he was handing Mr. Sgro a discovery packet in open court. 
Colloquy regarding a no contact order. COURT ORDERED, Deft. shall have no contact whatsoever with the victim, William Moyer.     
  
01/13/09 9:00 AM SENTENCING (DEPT. III) 

In the meantime, to the best of my knowledge, his victim has not been reimbursed for his medical bills, or paid for his pain and suffering. It's not yet known whether  William Moyer will sue Rizzolo for attempting to take his life.


Dominic will be sentenced on January 13, 2009.

His father was recently heard telling friends that Dominic will get off with one year probation, and not have to go to jail.

Rick Rizzolo probably knows this in advance because he and his lawyers were major contributors to our district attorney's last two political campaigns. The Rizzolos hosted a fund raiser in their mansion for Dominic's prosecutor DA David Roger, and Dominic's lawyer Tony Sgro donated Roger's campaign headquarters. But Nevada's lax political campaign laws do no consider this a conflict of interest.

With his family's connections to the DA, few believe Dominic will spend time in jail for his crime. However, the Rizzolo's long history of violence indicates it will probably not be the last time Dominic tries to kill someone and think he can get away with it.



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