Getting Special Treatment
Beating victim's attorneys
file Motion to revoke
parole, and mobster tries
to play the race card
Brother of U.S. Judge may
be involved in money laundering
INSIDE VEGAS by Steve Miller
September 13, 2010
LAS VEGAS - Attorneys for unpaid
beating victim Kirk Henry went to Federal Court last Thursday to ask
racketeer Rick Rizzolo's parole either be revoked or extended because
he is living a lavish lifestyle while concealing his fortune from seizure
by the IRS and Henry.
In their 20
page MOTION, former Federal Prosecutors Stanley Hunterton and Donald
Campbell who are now in private practice representing Henry told the court:
"It is undisputed that
Rick Rizzolo's actions bear the indicia of tax fraud despite his prior
felony conviction and incarceration for the same crime. Moreover, not only
does this pattern of fraudulent behavior validate the Henry's pending civil
claims, but it also warrants the revocation or extension of Rick Rizzolo's
terms of supervision and restriction of his ability to move his assets."
exchange for a feather light one year prison sentence, Rizzolo (AmericanMafia.com
photo by Mike Christ) plea bargained that he would pay all his debts including
$9 million he still owes Henry who suffered a broken neck in 2001 at the
hands of one of Rizzolo's bar employees while arguing over a disputed $88
The responsibility of overseeing Rizzolo's
payment schedule was placed in the hands of the Nevada
Division of Parole and Probation who have totally dropped the ball.
Rizzolo was the owner of the now closed
Crazy Horse Too strip club. The club was subsequently seized by the government
after Rizzolo plead guilty to racketeering that included the intimidation
or beating up of club patrons who refused to sign for inflated credit
The key to why Rizzolo is being allowed
to get away with what would have certainly sent a less politically
connected person back to prison may be whom he choose to be his "asset
Attorney John Dawson coincidentally is
the brother of United
States Federal Court Judge Kent Dawson who coincidentally was appointed
for life by U.S. Senator
Harry Reid who coincidentally is the business
partner of Jay
Brown who coincidentally was Rizzolo's former corporate agent and attorney
Today described as; "...a longtime friend and former casino lawyer
whose name surfaced in a major political bribery trial this summer and
in other prior organized crime investigations. He's never been charged
with wrongdoing — except for a 1981 federal securities complaint that was
settled out of court." The Washington
Post has also written about Brown; "...whose name has surfaced
in federal investigations involving organized crime."
In Thursday's MOTION,
Kirk Henry's attorneys explain what happened to the Rizzolo's fortune and
why it's safely beyond the reach of the IRS and Henry: "...Rick
Rizzolo and his wife Lisa retained attorney John E. Dawson, Esq. for what
they euphemistically referred to as 'estate planning.' In reality,
Rick Rizzolo engaged Mr. Dawson to create a complex web of trusts, corporate
entities, and partnerships for the purpose of asset protection."
then states: "Mr. Dawson recommended the use of an
offshore trust because it would 'provide a second layer of asset protection.'
He also recommended that Rick Rizzolo transfer certain funds to this offshore
trust because 'in the event a U.S. Judge froze any of [his] assets, the
funds in the Oppenheimer Account would be totally protected and would not
be subject to being frozen.' "
Attorney Dawson's mention of a "U.S.
Judge" freezing Rizzolo's assets is ironic because John Dawson's
brother Kent was the presiding U.S. Judge in the felony trials of
sixteen Crazy Horse Too employees.
Judge Dawson went real easy on the sixteen
former Crazy Horse goons after they pleaded guilty to crimes including
racketeering, tax evasion, robbery, and extortion, this after Federal
Prosecutors asked for harsh sentences, and after a member of the New
York Crime Commission testified
about several of the defendant's mob ties.
During all sixteen trials, Judge Dawson
failed to disclose that his brother was being paid tens of thousands of
dollars to transfer the Rizzolo's liquid assets to the Cook Islands.
Based on this obvious conflict of interests,
it's long been suspected that other U.S. Judges in the Las Vegas Federal
Court system are going out of their way to not embarrass a colleague, and
subsequently stalling this case until Mr. Henry (KVBC TV News photo)
dies of his injuries, or the case can be settled out of court with no media
scrutiny of the Dawson connection.
If so, Rizzolo's hiring of the brother
of a U.S. Judge was a stroke of genius!
Or were there unseen hands at work making
sure the penalties imposed on Rizzolo would never
be officially enforced? Remember, Rizzolo's former attorney and corporate
agent's name surfaced in a major political bribery trial.
Nonetheless, I still can't figure out why
the Internal Revenue Service has not taken independent action against the
Rizzolos who owe in excess of $6 million dollars in back taxes, penalties,
Maybe that's the underlying reason Kirk
Henry's attorneys filed their latest MOTION?
To try to get the IRS involved so Henry's long-stalled Uniform
Fraudulent Transfer Act (UFTA) case could be forced to move forward.
154 of Rizzolo's Deposition, he states that he paid John Dawson $80,000
for services (possibly including money laundering) since May 2001. (See
"PERSONAL AND CONFIDENTIAL" letter below).
Kirk Henry's neck was broken in 2001, and
Rizzolo got out of prison over two and a half years ago, but in the nine
years since Henry filed his lawsuit, no one other than mob lawyers
have received a dime. Henry's attorneys are working on contingency and
so far have received a total of only $6,000 in court ordered legal fees
paid by Rizzolo. Rizzolo's lawyers have so far received over one-half million
dollars in legal fees from the racketeer and his ex-wife.
According to Henry's legal team, the parole
officers entrusted with ensuring that Rizzolo pays his creditors may be
"unwilling" to fulfill their duties.
After Rizzolo disclosed on page
281 of his Deposition that John Dawson transferred over $1.1 million
dollars into the Rizzolo's local bank accounts since Rizzolo was placed
on parole, and that Rick Rizzolo felt he did not need to disclose this
information to his parole officer Eric Christiansen or the IRS, Henry's
attorneys responded with the strongly worded MOTION
asking the court to revoke Rizzolo's parole and send him back to prison
before his parole expires in April 2011, or before he transfers anymore
At the same time, Rizzolo's ex-wife received
over $600,000 from her and her ex-husband's overseas stash which she also
to not reporting on her tax returns.
The latest MOTION
states: "Rick Rizzolo is a convicted felon on supervised
release who owes millions of dollars in restitution to the victims of his
crimes. Nonetheless, he was allowed (emphasis added) to engage
in massive financial transactions for his own benefit, at the expense of
his victims, despite the fact that he is expressly prohibited from
doing so under his conditions of supervised release (emphasis added).
Incredibly, Rick Rizzzolo even had the audacity not to file a tax return
in 2008 or 2009 because he 'didn't make any money.' "
"Simply put, Rick
Rizzolo does not lead the life of an ex-convict who owes millions of dollars
to the Henrys and the Government. Indeed, by effectively disregarding his
restitution obligations and conditions of supervised release without
consequence (emphasis added), Rick Rizzolo has been
allowed (emphasis added) to live as if his transgressions over
the past decade never occurred. The following details of Rick Rizzolo's
post-release behavior demonstrate a stunning lack of oversight
into his behavior along with a complete failure to enforce the penalties
imposed on him as a result of his criminal conviction (emphasis
added)," stated Kirk Henry's attorneys on page 9 and 10 of their
Henry's attorneys enforce their point by
stating: "He never disclosed any of the subsequent
transactions to his probation officer even though he was ordered to do
so. In addition, Rick Rizzolo never disclosed any of these transactions
to the Internal Revenue Service. More importantly, Rick Rizzolo did not
attempt to use this vast sum of money to meet his restitution obligations
to the Henrys."
"...he has also ignored
the express strictures governing his supervised release and the Department
of Parole and Probation is either unwilling or powerless to do anything
about it (emphasis added)." "Nevertheless,
the Government has taken no action to enforce Rick Rizzolo's conditions
of supervised release (emphasis added) pertaining to the
consummation of financial transactions."
308 of Rizzolo's August 18 Deposition, Rizzolo attorney Dominic Gentile
states: "I think his name is Mastrangeli"
in reference to the name of Parole Officer Eric Christiansen's supervisor.
Supervisor Mastrangeli's naming may be
consequential because Rizzolo had often blamed his legal problems on his
own Italian heritage.
97 of his Deposition, Rizzolo stated "I was Italian...."
when asked "...what was your view of why you were
of such interest to the FBI that they had been looking at you for 20 years?"
And when asked; "And
what do you base that on?"
Rizzolo replied; "Because
I was never doing anything, so I don't know what else they'd be looking
at me for"
If Rick Rizzolo can convince the court
that bias against Italians is why the government expended hundreds of thousands
of tax dollars to investigate, prosecute, and convict him, and close the
Crazy Horse Too, I can also use the race card to rationalize that a government
official with an Italian surname might be sympathetic to Rizzolo's bias
claim and let him ignore his conditions of supervised release in an act
of reverse discrimination.
73 of Rizzolo's Deposition, he says he sold a number of valuable Rolex,
Cartier, and Paiget watches to his late father and a local jeweler in order
to raise cash to cover living expenses. He said he did not report the sales
to his parole officer or the IRS.
I sure hope I'm wrong, but with the unexplainable
special treatment Rick Rizzolo is receiving, it would not be a surprise
if one or more public officials who appear to be protecting him suddenly
turn up wearing a flashy diamond studded Rolex, Cartier, or Paiget watch.
And they say the mob left Vegas years ago...
Rick Rizzolo's entire August 17 & 18,
2010 DEPOSITION: Pg. 1-48,
Rick's best friend Fred
Doumani's entire August 17, 2010 DEPOSITION
Lisa Rizzolo's May 12, 2009 DEPOSITION:
(some pages omitted by mutual consent of parties)
Evidence expected to be used in court re: fraudulent conversion of funds