if things couldn't get any more bizarre...
Racketeer Rick Rizzolo's
lawyers -- one licensed,
and one not -- file phony
court documents that
further stall beating victim
Kirk Henry's case
INSIDE VEGAS by Steve Miller
February 1, 2010
Subpoena issued at 1 PM on the day Steve Miller was "commanded" to appear
at that morning's trial
LAS VEGAS - For the entire length
of the Kirk Henry federal case, the United States Federal Court for the
District of Nevada has handled defendant Rick
Rizzolo with kid gloves. In the meantime, quadriplegic Kirk
Henry is still waiting to be paid for the injuries he suffered at the
hands of one of Rizzolo’s thugs back in October 2001.
Henry's neck was broken after he disputed
a padded bar tab at Rizzolo's now-defunct Crazy Horse Too topless
bar in Vegas. Henry was not Rizzolo's first
Instead of going after racketeer Rizzolo
for using the court to stall this case, the federal court is going after
Rizzolo's jail house lawyer James “Spud”
Kimsey for allegedly practicing law without a license -- at Rizzolo’s behest!
Instead of throwing the book at RIzzolo
for knowingly hiring a non-lawyer like Kimsey, then signing his
name to fifteen bogus court filings Kimsey authored including a subpoena
commanding Kirk Henry’s attorney appear for a deposition at one in the
morning, the federal court seems obsessed with punishing the easiest target,
an ex-con biker who's kept his nose clean for the past fourteen years.
This is another example of why Kirk Henry
has had to wait so long for justice.
Kimsey’s inclusion in this case was intentional
-- to stall the case for at least an additional six months. It worked.
The case has gone nowhere since last summer and Henry still sits in his
electric wheelchair waiting for justice that seems more elusive with each
passing day. And now the court is taking even more time away from Kirk
Henry’s plight, to attend to this latest waste of time -- punishing Kimsey
for doing Rizzolo's bidding.
But what's even more amazing is that Kimsey
usually makes more sense than Rizzolo's licensed attorneys! To see
what I mean, take a look at the quality of this document he authored that
was filed in federal court on Friday, January 29: http://www.stevemiller4lasvegas.com/Spuds01-29-10Response.pdf
In it, Kimsey tries to explain why he should
not be held in contempt for practicing law without a license, but he also
completely and clearly explains Rizzolo's bogus defense better than all
Rizzolo's high priced lawyers could do since this case began in 2001.
With the exception of the ridiculous subpoena
Kimsey filed on the same day he "commanded" me to appear in court so he
could attempt to put me on the witness stand (see the subpoena above that
I received four hours after the court hearing ended), or the subpoena he
filed with Rick Rizzolo's approval on September 14, 2009 demanding that
Kirk Henry's lawyer appear for deposition at one
in the morning, Kimsey makes more sense than any other member of Rizzolo's
legal team ever has!
As a journalist, I must occasionally refer
to the Nevada
Reporter's Shield Law when I'm subpoenaed to testify at depositions
or in court.
Several years ago, Rizzolo's former attorneys
Dean Patti and Tony Sgro tried to force me to appear at a deposition. They
wanted to know the names of my sources. My attorney cited NRS
49.275, and their subpoena was summarily quashed.
In this case, even had I received
the subpoena in a timely manner, I would have opted to exercise my
privilege and not testify. I would have done so in respect to other
However, I would have loved to sit in the
witness chair and tell the court that they had the wrong man. But, as a
working journalist engaged in an ongoing story involving the litigants
in the same court's proceedings, it would have set a terrible precedent
for my profession.
Therefore, I'll testify on AmericanMafia.com
I wish I could go on the record and tell
Federal Judges George Foley and Philip Pro: "You're punishing the wrong
man! Rick Rizzolo put Kimsey up to this, and Rizzolo should be the one
charged with Contempt, not Kimsey!"
Hopefully they'll get the message.
Below is an example of the work product
of a licensed attorney working on Rizzolo's behalf. After reading
Ken "The Ticket Fixer"
Frizzell's latest court filing, I believe that "Spud" Kimsey could
have done a better job:
In it, Frizzell argues (as did Kimsey)
that the Crazy Horse Too was worth more than $30,000,000 in 2006 when it
was seized by the government
(In 2006, my house was worth just over
a million dollars.)
the broken down converted warehouse and seedy property where the Crazy
Horse Too once stood is appraised at just under $3 million and dropping
in value each day.
(My house is presently estimated to be
worth around $250,000.)
So it's like crying over spilled milk for
Rizzolo to claim he could have sold the topless bar and its property for
enough to pay all his debts. He couldn't. Furthermore, the "buyers" he
claimed were offering $30 million were all phonies
with no money, or were Rizzolo's mob associates acting as straw men.
Even though Frizzell's estimate of the
Crazy Horse Too's worth is wildly exaggerated, he helps Kirk Henry's case
by his use of the words "the obligation of both," meaning Rick Rizzolo
is personally obligated to pay his "restitution of $10,000,000 (to Kirk
Henry)," "assessments," "fines," "forfeiture of personal money judgment
of $4,250,000.00," and "IRS lien of $1,723,340.31." This, in "agreement
with the Government," does not include an ability to file bankruptcy, or
hide the money off shore.
In its hey day, Rizzolo bragged the Crazy
Horse Too purportedly turned profits of up to $12 million per year. But
on April 28, 2003, INSIDE VEGAS published
several affidavits taken from District Court records that relayed eyewitness
accounts of how Rizzolo allegedly produced such profits: These allegations
were subsequently proven to be accurate.
According to eyewitness statements, Rizzolo
was operating a major drug and prostitution super market in addition to
customers out of cash or forcing them to sign bogus credit card bills!
Lisa Rizzolo was married to Rick at the time, and because Nevada is a Community
Property state, she shares responsibility for her ex-husband's court ordered
debts. Getting a "sham" divorce and stashing ill-gotten money off shore
does not protect her from prosecution or collection through "repatriation"
According to a U.S.
Department of Justice press release that described the: "...serious
threat that the Crazy Horse Too has presented to the community," and the
fact that "...male employees sought to extort payment from them (customers)
through threats of violence and through the actual use of force," the only
way Rizzolo could make $12 million per year was through highly illegal
methods, and that was the only possible reason the bar was worth $30 million
in Rizzolo's mind.
To pay $30 million for the Crazy Horse
Too, a new owner would have had to continue doing business in the same
manner as Rizzolo.
Another example of why Kimsey is a better
advocate for Rizzolo than Rizzolo's licensed legal team is contained in
the following document filed last Friday by attorney Ken Frizzell
falsely claiming that his client had a legitimate divorce, and has the
right to declare bankruptcy:
Frizzell fails to note that the Rizzolo's
divorce was a "sham" that took place three weeks before he entered into
plea negotiations, and was accurately referred to as such in the Las
Vegas Sun editorial of August 21, 2007. And as far as being able
to "discharge in bankruptcy" all of Rick and Lisa Rizzolo's financial obligations,
Frizzell should know that bankruptcy was ruled impermissible by the court
in 2006 as part of Rick's plea agreement.
If bankruptcy was an option, the
Rizzolo's would have already filed one. Instead, they
hid their cash off shore out of their creditor's reach -- a clear sign
they knew they were in deep trouble.
In doing so, Rick and his ex-wife Lisa
may have incriminated several local attorneys including one who is the
brother of a federal court judge. At the time the judge's brother was hired
to set up off shore accounts, Rick Rizzolo's troubles were front page news.
Fully aware of who he was working for, the "asset protection" lawyer along
with accountants and others in the Las Vegas legal community including
Patti and Sgro obviously schemed to deceive federal authorities to protect
the Rizzolo's bounty thereby killing almost every chance of Kirk Henry
and the IRS getting paid, unless the overseas tax shelter laws could be
changed, or a brave judge stepped in and changed the rules (more on this
The attorneys and accountants that helped
the Rizzolos were paid a fortune for their highly questionable services.
Las Vegas Review-Journal columnist
John L. Smith on Friday, January 29, 2010 wrote:
"Rizzolo's days running from his $9 million judgment obligation to paralyzed
Kansas tourist Kirk Henry could be near an end. If that happens, Rizzolo's
mess will get much deeper. The list of potential defendants next in line
to be charged with attempting to deceive federal authorities will
surely make bigger headlines."
Smith is right, especially if Lionel Sawyer
& Collins asset protection attorney John
Dawson is named as a defendant. His brother is United States Federal
Judge Kent Dawson who coincidentally presided over the felony trials of
fifteen Crazy Horse Too employees without disclosing that his brother was
hiding cash for the former Crazy Horse Too owner.
At a time like this, the court should be
focusing on moving Henry's case forward and forcing the Rizzolos to "repatriate"
their millions stashed in the Cook Islands.
If this took place in an expedient way,
it might negate having to name new defendants, and open a major political
can of worms in the months leading up to a highly contested federal election.
The IRS should also jump in because we
need the tax revenue to bail out banks, insurance companies, and auto manufacturers.
Rizzolo in his plea bargain agreed to pay
over $27 million in debts in exchange for a light prison sentence. The
government kept their part of the bargain, but Rizzolo welched on his,
and to the present day, the court, Department of Justice, and IRS don't
seem to care.
Last week, a federal judge in Minnesota
established new and long-overdue Case Law that Judges Foley and Pro can
now use to force the Rizzolos to return their cash to the United States.
The Honorable Michael J. Davis. Chief U.S.
District Judge, District of Minnesota ordered litigants in his court to
“repatriate” their ill-gotten funds stashed in off shore banks.
Now, the U.S. District Court for the District
of Nevada can do the same so that Kirk Henry, the IRS, and others can finally
Here's the ruling:
0:09-cv-03333-MJD-JJK Document 52 Filed 12/08/09 (emphasis
IT IS HEREBY FURTHER ORDERED that
Defendant shall, no later than December 3, 2009, repatriate to the territory
of the United States any and all funds and assets that are held by Defendant
or are under his direct or indirect control, jointly or singly, or in which
Defendant has or had any beneficial interest, or over which he maintained
or maintains and/or exercised or exercises control, including but not limited
to any and all assets and funds:
1. Held in foreign bank, brokerage
or other financial accounts; or
2. Transferred out of the United
States from any account within the territory of the United States at
any point from January 1, 2006 through the present; and Defendant shall,
no later than December 3, 2009, deposit such repatriated funds into
the Registry of this Court.
In contrast to the Minnesota case, federal
judges in Nevada have turned their backs when the
Rizzolos withdrew money from their off shore accounts to pay legal
fees, or fund their lavish lifestyles.
In the Minnesota case, Judge Davis was
not as patient or lenient as Nevada judges, and on January 25, 2010, set
the perfect example for the Rizzolo case -- he jailed the defendant Trevor
G. Cook for not complying with the court's order to repatriate his money.
Cook is to stay in prison until he repatriates his ill-gotten cash.
Not only did Rick Rizzolo not comply with
the court's order to pay his debts, his wife Lisa falsified
her income tax returns by refusing to report the off shore accounts.
What’s good for a goose in Minnesota ,
should be good for the gander in Nevada!
Rick and Lisa Rizzolo are probably laughing
their heads off because the court was duped into going after the wrong
guy -- Spud -- further stalling this case and causing further injury to
Mr. Henry. But based on the December 8, 2009 ruling in Minnesota,
they may not be laughing for long.