Court asked to consider nine reasons why
Lisa Rizzolo can keep her
and Rick not be sent back
Rick Rizzolo owes his family over $6 million dollars and has
right to pay his relatives before the IRS and others
Lisa Rizzolo's off shore trusts are not "foreign trusts," so
does not have to declare them with the IRS
Ms. Rizzolo did not know that Plaintiffs and the
were searching for her assets
It's "complete and utter nonsense" to think Lisa Rizzolo
transfer or dissipate her off shore accounts
A "buyer" had $45 million in escrow for the Club,
the City of Las Vegas ruined the sale
The Government should have operated the topless bar
Rick borrows from his son to pay Kirk Henry $1,000 mo.
If Rick is remanded, the Henrys may not receive any
restitution payments in the near future
"Mr. Rizzolo has been vilified for too long"
INSIDE VEGAS by Steve Miller
June 27, 2011
LAS VEGAS - Federal Judge Philip Pro gave
the parties in beating
victim Kirk Henry's personal injury lawsuit against Rick and Lisa Rizzolo
until June 23 to file the latest round of Oppositions in a case that has
dragged on for over ten years.
Judge Pro also made July 13, 2011 the deadline
for Rick Rizzolo's attorneys to file responses to requests from the U.S
Department of Parole and Probation, and the U.S. Attorney asking that Rick
be sent back to prison for repeatedly violating his conditions of supervised
release. The final hearing is set for July 20, 2011.
In 2001, Kirk Henry's neck was broken by
an employee of the Rizzolo's Crazy
Horse Too strip club after the Kansas tourist refused to pay a padded
$88 bar tab. Henry has been a quadriplegic ever since. His beating along
others triggered a Federal investigation and the eventual closure and
seizure of the topless club, and the decade-long personal injury lawsuit.
The documents the Rizzolos filed last week
revealed their latest defense strategy as to why they should not be held
personally liable to pay Henry the over nine million dollars Rick agreed
to in his plea bargain in exchange for an abbreviated prison sentence.
The Rizzolos want Judge Pro to believe
that Rick owes his own family members over $6 million dollars, and that
he has the right to pay the Rizzolos first before the IRS, Henry, and others.
However, Rick does not mention where he would get the funds to pay his
relatives because he has long claimed to be broke, and claimed that the
funds to pay the IRS, Henry, and others would come exclusively from the
sale of the defunct Crazy Horse Too which is worth a fraction of what he
On July 1, a public
auction will be held to sell off the remains of the strip club, but
the price the property will bring under current local economic conditions
is not expected to cover more than the government's reimbursable expense
in preserving the asset until the court ordered sale. Therefore, the remaining
court ordered obligations the Rizzolos owe the IRS, Henry, and others will
have to come from the couple's personal assets they have cleverly hidden
off shore with the help of asset
protection attorney John Dawson, the brother of Federal Court
Judge Kent Dawson who was appointed for life by U.S.
Senator Harry Reid who is the business partner of Jay Brown, one of
the Rizzolo's attorneys and former corporate agent.
(John Dawson's personal attorney has been
attending all hearings involving the Rizzolos.)
Many believe the Rizzolos are receiving
help from Reid who has cronies in the U.S. Attorney General's office in
Washington, D.C., the agency that is prosecuting the Government's ongoing
tax evasion case against Rick Rizzolo (Lisa Rizzolo has not yet been charged
with a crime.)
On June 9, 2011, Judge Pro soundly denied
Rick Rizzolo's attempt to enter into evidence the results of a lie detector
test he paid for. But the questions in the test revealed the Rizzolo's
latest strategy on how to keep their hands on their ill-gotten fortune
-- to claim they owe most of it to relatives.
Rizzolo contended in the polygraph questions
"which were reviewed with the Examinee prior to testing," that his probation
officer purportedly failed to inform him of his reporting requirements,
therefore he was free to deal in millions of dollars unbeknownst to his
P.O., and that he did not have to report a $789,000.00 payment to his late
father Bart Rizzolo because he "legitimately" owed Bart over a million
Two weeks later on June 22, Rick's ex-wife
Lisa filed a document (excerpts below) claiming that Rick also owes her
money -- this time in excess of six million dollars!
In the document she claims that the City
of Las Vegas ruined the "$45 million" value of the Crazy Horse Too property
by shutting it down, and that the federal government should have operated
the topless bar in order to preserve its value. She also states that she
did not have to list her Cook Islands bank accounts and trusts with the
IRS because, "Mr. Dawson, is the protector
and/or trustee of her trusts, they qualify as domestic, and not foreign,
Lisa also stated that she did not hide
the existence of her off shore accounts. However, they were not revealed
to Henry or the IRS until she inadvertently disclosed them in her June
5, 2009 Deposition,
four years after the placement of her assets in the Cook Islands. And if
she's correct that "they qualify as domestic," why hasn't the IRS seized
the off shore assets from "the protector?"
Lisa claims that her off shore accounts
and trusts are solely hers even though she was married to Rick during the
years he operated a racketeering
enterprise from which she received and gladly spent her portion of
the criminally derived proceeds, much of which remain in her once-secret
off shore accounts. She also claims that her 2005 divorce was not a "sham"
to avoid paying her and her husband's creditors even though it occurred
in the middle of Kirk Henry's lawsuit, and three months before Rick began
his plea bargaining.
Court records state: "Ms. Rizzolo received
the marital residence in Las Vegas, Nevada (appraised at $944,760.00),
a house in Newport Beach, California worth $1.4 million, and a condo in
Chicago, Illinois with a market value of $192,638.00 in 2003, as well as
the Oppenheimer accounts in the amount of $7.2 million."
But according to information gathered by
the the FBI,
there was much more hidden loot, including $5 million dollars the Rizzolos
stole from an unpaid
Lisa also failed to mention in her court
filings that the City closed the Crazy Horse Too because the
"buyer" had no money, and was described by police and the City Attorney
as acting like a front
man for Rick Rizzolo whose family
members were still running the place while Rick was in prison. The
City wanted to put a permanent end to the
of violence, and they were correct in closing the business no matter
what effect it had on the property's value.
Fearing that the Rizzolos might try to
secretly move their assets from the Cook Islands to another off shore haven,
on May 7, 2011, Kirk Henry filed for an Injunction
stating: "Defendant Lisa Rizzolo has at all times relevant hereto been
complicit in Rick Rizzolo's scheme to defraud Plaintiffs and frustrate
their recovery of funds owed under the settlement agreement. To that end,
she engaged or participated in each and every financial transaction which
Plaintiffs have alleged to be fraudulent including the sham divorce. Lisa
Rizzolo also acted for the benefit of Rick Rizzolo when she has made numerous
payments on his behalf and failed to enforce the financial provisions of
the divorce decree. As such, the Court should bar Lisa Rizzolo from transferring
or dissipating any assets without seeking permission from His Honor."
In response to Henry's Motion, Lisa's attorneys
described as "complete and utter nonsense" the assertion that she might
try to secretly transfer her and her ex-husband's loot from the Cook Islands
to another undisclosed off shore location, and that an Injunction "would
create an undue hardship on her."
But Lisa's most questionable assertion
is that "It is not fraudulent for a debtor to prefer
one creditor over another." This after Lisa secretly transferred hundreds
of thousands of dollars to her ex-husband while the IRS, Kirk Henry, and
others remained unpaid.
Document 529 Filed 06/23/11
KIRK and AMY HENRY,
FREDERICK RIZZOLO aka RICK RIZZOLO,
an individual; LISA RIZZOLO, individually
and as trustee of The Lisa M. Rizzolo
Separate Property Trust and as successor
trustee of The Rick J. Rizzolo Separate
Property Trust; THE RICK AND LISA
RIZZOLO FAMILY TRUST; THE RICK
J. RIZZOLO SEPARATE PROPERTY
TRUST; and THE LISA M. RIZZOLO
SEPARATE PROPERTY TRUST, THE
RLR TRUST; and THE LMR TRUST,
OPPOSITION TO PLAINTIFFS’
MOTION FOR INJUNCTIVE
RELIEF AGAINST THE
DISPOSITION OR TRANSFER OF
In addition, Rick Rizzolo was ordered to pay Ms. Rizzolo alimony
of $83,333.00 per month for sixty (60) months (emphasis
added) commencing on January 5, 2006. Rick Rizzolo failed to
pay any portion of the alimony owed to Ms. Rizzolo. As such, Ms. Rizzolo
sought to enforce the decree for judgment on the alimony arrearages owed
and for an award of attorneys fees and costs. After extensive hearings,
a judgment was entered in favor of Ms. Rizzolo and against Rick Rizzolo
in the amount of $4,999,980.00 plus prejudgment interest thereon at the
legal rate in the amount of $1,010,460.07 plus attorneys fees in the amount
of $2,500.00 for a total judgment of $6,012,940.07
together with interest thereon at the legal rate from the date
of entry here of until paid.
The City of Las Vegas subsequently revoked the liquor and/or business
license of the Crazy Horse Too. At the time of
the revocation, an escrow had been opened for the sale of the Crazy Horse
Too in the amount of $45 million. The planned sale of the Crazy
Horse Too reportedly failed because of the revocation of its liquor license
which diminished its value. The Federal Government has
since seized the Crazy Horse Too. The proceeds from a forfeiture sale of
the Crazy Horse Too would have been sufficient to pay the Henrys settlement,
but for the City Council’s unforeseen revocation of the Crazy Horse Too’s
liquor and/or business licenses.
As to the issue of concealment, Plaintiffs argue that “Lisa Rizzolo
did not disclose the existence of her foreign trust to the Internal Revenue
Service” Motion for Injunctive Relief Against the Disposition or Transfer
of Assets. Such is incorrect. Ms. Rizzolo’s separate
property trusts are not “foreign” trusts. Because her estate planning attorney,
Mr. Dawson, is the protector and/or trustee of her trusts, they qualify
as domestic, and not foreign, trusts. As such, Ms. Rizzolo correctly filled
out her tax returns wherein the section for the disclosure of a foreign
trust was not checked was completely accurate.
Contrary to Plaintiffs’ assertion, Ms. Rizzolo
did not know that Plaintiffs and the Internal Revenue Service (“IRS”) were
actively searching for available assets. As
to the latter, Ms. Rizzolo was not a party to the Federal Criminal Case
and is not privy to the activities that the IRS may be conducting regarding
available assets for payment of restitution, fines, etc. related to Rick
Rizzolo’s obligation in said case.
There is no question that Ms. Rizzolo’s half of the community estate
was, and is, her property, during marriage and after divorce, and free
from Rick Rizzolo’s separate contractual or tort debt. She was not a party
to either the lawsuit between the plaintiffs and Rick Rizzolo, or its resolution.
As such, a third party is not permitted under
Nevada law to question either the parties’ decision to divorce, or the
distribution of property made therein.
It is not fraudulent for a debtor to prefer
one creditor over another.
Since her divorce in 2005, Ms. Rizzolo has conserved the assets awarded
to her in separate property trusts for the benefit of her children. Now
- some six (6) years later - Plaintiffs make the
outrageous accusation that the assets awarded to Ms. Rizzolo in the divorce
are in “significant danger” of being transferred or dissipated by her.
This is complete and utter nonsense. Ms. Rizzolo will continue
to do what she has done in the past, pay for her living and incidental
expenses and maintain the remainder of the assets in her trust for the
benefit for her children. As such, an order from
this Court restricting Ms. Rizzolo from utilizing her own separate property
assets would create an undue hardship on her. Such is especially
true since the spousal share of community property is not liable for the
debts of the other spouse.
Unfortunately, it has turned out that Plaintiffs made a bad deal in
the State Court Case. This is not Ms. Rizzolo’s fault. However, she has
been dragged into this litigation because Plaintiffs are looking for someone
with “deep pockets” to collect against as it is
obvious the sale of the Crazy Horse Too will not yield sufficient funds
to pay the remaining sums owed to Plaintiffs.
21 PAGE OPPOSITION
But even more amazing is Rick's claim that
he "has been vilified for too long," and had to borrow $4,000 from his
son in order to pay a
pittance of the $9 million dollar restitution he owes Kirk Henry.
Document 527 Filed 06/22/11 Page 2 of 78
Also, under the terms of the settlement agreement, Mr.
Rizzolo is in fact not even required to pay the Henrys the other nine million
dollars until the sale of the Club. It is important that this
Court is left with a proper understanding as to the underlying history
because Mr. Rizzolo has been vilified for too
From the time the IRS began garnishing Mr. Rizzolo's wages, he has been
unable to make the restitution payments to the Henrys and he
has had to borrow money from his son in order to do so. However,
will not be able to continue to borrow money from his son.
On July 20, Judge Pro will reconvene his
court to hear final arguments from the Rizzolos, the Department of Justice,
U.S. Dept. of Parole and Probation, and attorneys for Kirk Henry as to
why Rick should not be remanded back to prison for violating
the conditions of his parole such as not paying the millions he owes
Kirk Henry, City of Las Vegas, and others.
On June 13, Rizzolo's attorneys filed this
statement hoping to convince Judge Pro to let their client remain out of
jail, and continue living rent free in a $2.5
million dollar Roma Hills mansion while paying Kirk Henry a measly
$1,000 per month.
-PAL Document 450 Filed 06/13/11 Page 2 of 35
In sum, they are clearly aware that if Mr.
Rizzolo is remanded, the Henrys may not receive any restitution payments
in the near future as Mr. Rizzolo will be unable to work. Additionally,
it must be noted that the Henrys make a point of the fact that, to date,
they have received approximately $4,000 in restitution from Mr. Rizzolo.
What the Henrys fail to mention is that the $4,000.00 they have received
is in fact $4,000.00 more than is currently due and owing to them pursuant
to a binding settlement agreement that the parties entered into in August
If on June 20, Judge Pro discounts the
above far fetched objections and throws the book at Rick Rizzolo and places
him back in prison for a few months, it does not mean that anyone will
get paid in the near or distant future -- unless Lisa Rizzolo is indicted
for her part in hiding their marital assets.
INSIDE VEGAS will be at the Crazy Horse
Too public auction on Friday, July 1, and at Rick Rizzolo's parole revocation
hearing on July 20.
It's hoped that following the July 1, 2011
sale of the topless bar property, and Rizzolo's own admission that "Mr.
Rizzolo is in fact not even required to pay the Henrys the other nine million
dollars until the sale of the Club," that Judge Pro will finally start
moving this case toward a meaningful resolution the highest priority of
which would be to make sure the Henrys are paid what they're owed from
Rick and Lisa Rizzolo's hidden stash.
That resolution will
only be possible if Lisa Rizzolo and those who helped her hide her ex-husband's
vast assets are threatened with indictment.
If not, then the
Rizzolos with the help of the brother of a Federal Court Judge with connections
to a U.S. Senator, will have been allowed to make a mockery of our
Federal Justice system.