Government sends the Rizzolos
unexpected Christmas present
INSIDE VEGAS by Steve Miller
December 6, 2010
LAS VEGAS - They're making their
list and checking it twice!
On Friday, December 3, the United States
Attorney for Nevada filed a RESPONSE
in Federal Court asking that convicted Vegas racket boss Rick
Rizzolo be forced to honor the conditions of his parole. The document
mirrors many details INSIDE VEGAS reported on November
15 and November
22 in response to Rizzolo's repeated requests to have the Government's
victim Kirk Henry's cases summarily dismissed.
Since the Government's June 30, 2007 anticlimactic
closure of Rizzolo's former Crazy Horse Too strip club in Vegas, over
$27 million dollars in court ordered debts have gone unpaid. Rick Rizzolo
agreed to pay these debts in exchange for an abbreviated prison sentence.
Here's a copy of the Government's Rizzolo
Family Christmas List:
|1. 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,
2. The Clark County
Taxes owed on the Property with penalties and interest
3. The City of Las
Vegas sewer lien
4. The Security Pacific
Bank ($5 million dollar) loan with attorneys' fees, penalties, and interest
The restitution of US $9,000,000.00 plus interest to Kirk and Amy Henry
6. The restitution
of US $1,734,000.00 plus accruals to the IRS
7. The assessment
of US $500.00 plus interest
8. The fines of US
$750,000.00 plus interest
9. The forfeiture
of US $4,250,000.00 plus interest
10. The City of Las
Vegas judgment lien of US $2,192,000.00 plus interest
11. The IRS tax lien
against Rizzolo for the 2006 individual income taxes of US $1,032,535.26
And here's the reasons the Government gives
for not being paid:
failed to sell the club within the one year period that he was provided
after his plea, choosing instead to engage in a management agreement and
sham or reckless sale of the club to Michael
Signorelli. Signorelli, on taking over the club, subsequently mismanaged
the business to the point where neither the Government nor defendant could
find a qualified third party operator willing to manage the club without
a multi-year contract which would have delayed any sale of the club. The
Government moved for substitute forfeiture of the property and then, after
the forfeiture, attempted to sell the property to multiple
purchasers, all who failed to ever put significant real money down
on the property."
lavish amounts in various restaurant and entertainment establishments,
substantial funds offshore, disposing
of expensive assets to family members and friends and claiming falsely
that he is a
man of very limited means in responding to all efforts to identify
assets potentially attachable for meeting his obligations."
admitted efforts to place
other assets beyond the reach of third parties to whom he owes restitution,
requires action now to ensure that defendant does not escape his legal
obligations. Consequently, the Government's planned debtor
examination of defendant Rizzolo scheduled for December 17, 2010, is
not premature and should not be vacated." - DANIEL
G. BOGDEN, United States Attorney, December 3, 2010
It's entirely possible that on December
17, Nevada Federal Judge Philip Pro will follow the lead of a federal judge
for the District of Minnesota who on January 25, 2010 ordered a fraudster
be incarcerated until he surrenders millions of dollars he stashed in offshore
accounts to avoid paying court ordered debts.
According to a U.S.
Government press release, "Chief Judge Michael J. Davis found (Trevor
G.) Cook in civil contempt and U.S. Marshals escorted Cook from the courtroom
to jail. Chief Judge Davis ordered that Cook remain in jail until he is
in compliance with the court's orders."
Cook did not comply with the court orders
and subsequently was sentenced
to 25 years in the Federal Penitentiary.
Rick Rizzolo with
the help of his ex-wife and an asset
protection attorney who is the brother of a federal court judge, also
transferred most of his assets off shore to avoid his legal obligations.
It's not yet been determined whether Rick's ex-wife Lisa
Rizzolo will be charged for her part in what has been described as
divorce" obviously designed to avoid paying creditors including Kirk
Henry and the IRS.
According to U.S. Attorney Bogged: "On
April 26, 2010, the Court considered a request by the United States Probation
Office to modify defendant Rizzolo's conditions of supervised release to
require defendant to begin making monthly payments toward the restitution
owed to the Henrys."
court approved the request stating: "Mr. Rizzolo shall provide to the
probation officer the financial information requested and shall commence
paying the restitution obligations at a rate to be approved by the Court."
U.S. Judge Philip Pro, April 26, 2010
on the April 26 ORDER, Bogden wrote:
"Defendant in depositions has admitted that his conduct is designed to
avoid meeting his obligations to the Henrys and liabilities to other third
parties, including the Internal Revenue Service. Consequently, this Court's
modification of defendant's conditions was a reasonable response to force
defendant to begin to meet his financial obligations to the victims of
his club's crime."
his conditions also helped the Henrys meet obvious significant financial
needs resulting from the criminal injury done to Kirk Henry and forced
Rizzolo to begin to appreciate the need to meet rather than avoid his legal
obligations. Finally, modifying defendant's conditions in view of the damages
in this case promoted public respect for the law generally," Bogden
wrote on April 26.
However, over seven
months later, Bogden's words have proven to be wishful thinking because
Rizzolo (under the mistletoe) has failed to comply with any part of Judge
Pro's ORDER, and Kirk Henry, a quadriplegic, and his family are forced
to struggle financially through another bleak Christmas season unsure of
whether they will ever be compensated for Kirk's injuries.
failure to comply with the modification of his conditions of parole made
Bogden's statement; "promoted public respect for the law generally,"
appear totally meaningless.
It's been almost
eight years since the February
21, 2003 FBI raid on the Crazy Horse Too. If eight years of litigation
is any example of promoting "public respect for the law generally,"
our system of justice in Nevada is seriously flawed!
A tragedy occurred on September 20, 2001
when one of Rick Rizzolo's goons broke Kirk Henry's neck over a disputed
$80 bar tab. This violent event along with many
others inspired the United States Department of Justice to investigate
Rizzolo and his business resulting in the felony
convictions of Rizzolo and fifteen of his associates along with the
closure of the Crazy Horse Too and Rizzolo's agreement to pay the $27 million
in court ordered debts in exchange for a joke
of a prison sentence.
Mr. Henry has waited over five years to
receive his restitution but is yet to receive one penny from Rizzolo's
personal fortune (Rizzolo's Farmer's Insurance policy paid the Henrys $1
million in 2002). In the meantime, the convicted racketeer is making a
mockery of the Nevada Federal Court and the Internal
After all this time, I sincerely hope that
at the upcoming Judgment Debtor Exam, U.S. Attorney Bogden will be successful
in convincing Judge Pro to order Rick and Lisa Rizzolo to
their off shore fortune back to the United States to pay Rick's moral
and legal obligations, or send him back to jail until he does.
Court calendar changes notwithstanding,
INSIDE VEGAS will be present at 9 AM, December 17 in Courtroom 3-B of the
Lloyd D. George Federal District Courthouse in Las Vegas, and will publish
the outcome December 20 on AmericanMafia.com.
As of December 6, 2010, the Judgment Debtor Exam of Rick Rizzolo has been
postponed temporarily to a new date not yet set by the U.S. Federal Court.
INSIDE VEGAS will inform readers of the new date in a future column.
to read the Government's full 9 page RESPONSE IN OPPOSITION TO DEFENDANT
RIZZOLO'S (1) REQUEST TO VACATE JUDGMENT DEBTOR EXAMINATION; 2) MOTION
TO REQUIRE THE GOVERNMENT TO SPECIFICALLY PERFORM THE TERMS OF THE PLEA
AGREEMENT; and 3) REQUEST TO STRIKE THE ILLEGAL MODIFICATION OF SENTENCE
Have a joyful Holiday Season!