bank files MOTION to foreclose
on Crazy Horse Too. Action
the United States Government
apply for a license to open
a gentlemen's club
Crazy Horse former owner's
pleads guilty to Battery
use of a deadly weapon
INSIDE VEGAS by Steve Miller
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
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,
GREGORY A. BROWER
United States Attorney
DANIEL D. HOLLINGSWORTH
Assistant United States
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!
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
a 2007 court document filed by the bank, they complained:
should taxpayers be forced to pay for the "material misrepresentations
made by borrower?"
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.
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."
their MOTION to foreclose if granted will bring even more dire consequences
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?
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
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.
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.
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
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
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
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
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,
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