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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:

HENRY vs. RIZZOLO Changes Faces

Federal Court finally takes action to collect millions
stashed in hidden accounts by Rizzolo matriarchs

INSIDE VEGAS by Steve Miller
September 24, 2012

LAS VEGAS - Attention is now turning to Lisa Rizzolo, ex-wife of racketeer and former Crazy Horse Too strip club owner Rick Rizzolo, and his stepmother Kimtran.

Since his release from prison, Rick left Lisa and Kimtran holding the bag caring for his ill-gotten fortune either hidden off shore or in secret annuities in the U.S, while he parties like a rock star.

The question now is, will Lisa and Kimtran Rizzolo end up paying for Rick's actions through fines or possible jail time?

For more than a year, attorneys for beating victim Kirk Henry have asked Senior U.S. Judge Philip Pro to place an injunction on millions of dollars in ill-gotten funds the Rizzolos stashed in the Cook Islands. Henry's neck was broken in 2001 by one of the Rizzolo's strip club managers after the Kansas tourist disputed an $88 padded bar tab. Rick agreed to pay Henry $10 million restitution in exchange for a shortened prison stay, but later reneged.

Henry's June 2011 attempt to freeze the off shore money failed. Since then, Lisa Rizzolo has transferred and spent $714,481.40 of the Cook Islands stash, possibly laundering the majority to pay for her and her ex-husband's lavish lifestyles, while Henry waits in an electric wheelchair for his court ordered restitution. So far, Henry received just over $3 million including $1 million from the Rizzolo's insurance and about $2 million from the secret sale of the Philadelphia Crazy Horse Too of which Rick was a part owner. The balance of $7 million plus interest remains unpaid while Henry's medical and legal bills mount.

With new found information about the $714,481.40, Henry's attorneys on September 18, 2012, filed a RENEWED MOTION FOR INJUNCTIVE RELIEF AGAINST THE DISSIPATION OR TRANSFER OF ASSETS. A hearing on the motion is set for October 10, 2012 in U.S. Federal Court, and this time the motion is expected to be approved which should put a giant crimp in Rick and Lisa's lifestyles.
The Cook Islands accounts were set up and managed by attorney John Dawson, brother of U.S. Federal Judge Kent Dawson who presided over the trials of 15 Crazy Horse Too employees without disclosing that his unscrupulous brother was Rick and Lisa Rizzolo's "Protector." John Dawson acts as the teller for the Rizzolo's off shore accounts, and will be a key witness in Kirk Henry's Uniform Fraudulent Transfers Act trial scheduled for March 26, 2013 in Federal Court.
In the meantime, according to the court's order, the IRS must patiently wait for Henry to be paid before the U.S. Treasury can go after the balance of the Cook Islands accounts (if there's a balance left) to recover millions the Rizzolos still owe in back taxes, interest, and penalties.

But there's more Rizzolo laundered cash being sought!

The Federal Court on April 19, 2012, ordered Rick's stepmother Kimtran to turn over to Kirk Henry $1,052,996.03 that Rick arranged to be  fraudulently transferred to his late father Bart Rizzolo from the Philadelphia sale. Kimtran refused to cooperate. Henry's attorneys Don Campbell and Stan Hunterton filed a motion to hold Kimtran in contempt, A hearing was held on September 10, 2012, but Kimtran was a no-show. This triggered the court on September 17, to order the immediate seizure of Kimtran's bank accounts and annuities and transfer the seized funds into Kirk Henry's trust account.

Kimtran appealed the April 19 and September 17 orders to the U.S. Ninth Circuit Court of Appeals. Her appeal included the following plea:
Plaintiffs continue to disparage Kimtran by stating that she shamelessly and brazenly refused to comply with the Order (#583) and Judgment (584) which was befitting of a member of the Rizzolo clan. (#603, lns 14-17).  Perhaps these tactics to smear Kimtran, who is the widow of Bart Rizzolo, is nothing more than an attempt to cover up the fact that Plaintiffs’ counsel were less than diligent in protecting Crazy Horse Two, the primary asset from which the judgment was expected to be paid.
Defendant has not shamelessly and brazenly refused to comply with the court’s order. As indicated by the District Court, a mistake was made in the amount of the judgment which Kimtran is required to pay. Therefore, until that issue is resolved, and the Ninth Circuit Court of Appeals rules on her appeal, it is reasonable, and not a contempt of court for Kimtran to refuse to transfer money in satisfaction of the judgment. In the alternative, Plaintiffs’ motion should be denied until leave is obtained from the Court of Appeals to file a motion to correct the judgment in this matter. 

DATED:  September 17, 2012      
Respectfully submitted, 
/s/ Herbert Sachs

Kimtran's attorney Herb Sachs argues that Henry's attorneys did not protect the Crazy Horse Too asset. To protect the value of the asset, the  U.S. Department of Justice would have had to operate the topless bar until it could be sold for enough to cover the Rizzolo's debts. Sachs also argues that Kimtran's late husband Bart had loaned Rick money and paid Rick's attorney's fees. Sachs argues that those amounts should be deducted from the $1,052,996.03 Kimtran owes Henry. However, Sachs fails to provide evidence the loans ever existed or that Rick's attorney's fees were paid by Bart, and if so, why Henry should be stuck paying the Rizzolo's personal bills out of his restitution!

Kimtran's appeal, like those of Rick and Lisa Rizzolo's, is expected to be summarily dismissed for lack of substance. But no matter what decision the Ninth Circuit Court makes, the April 19, and September 17 orders forced the banks and insurance companies holding Kimtran's fraudulently transferred loot to transfer $1,052,996.03 to Henry's trust account.

Also, in the event the total $1,052,996.03 is no longer available or was transferred off shore, Henry's attorneys placed a lien on Kimtran's southwest Las Vegas home, and their motion to hold her in contempt still stands. Kimtran's latest contempt hearing is scheduled for October 10. If she again refuses to appear, or U.S. Marshals come up short on collecting the outstanding amount, Henry's attorneys ask that Kimtran be fined on a daily basis until she complies.

All the recent activity indicates that the court has had enough -- like so many of us who have been following this ad nauseam case. Even though HENRY vs. RIZZOLO has become a case study in several prominent law schools for its example of how ill-gotten assets can be protected and the courts held at bay, it's been eleven years since Kirk Henry's neck was broken. How long can justice be stalled?


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