The Party's Over For Lisa And Kimtran Rizzolo

"Rick Rizzolo’s share of the community property that
was fraudulently transferred to Lisa Rizzolo
is also subject to the judgment."

"Defendants Rick Rizzolo and Kimtran Rizzolo shall
make the necessary arrangements to transfer funds
in the amount of $1,052,996.03 to Plaintiffs Kirk
Henry and Amy Henry within thirty (30) days."
Senior United States Judge Philip M. Pro

Attorney sanctioned for Contempt of Court

INSIDE VEGAS by Steve Miller
AmericanMafia.com
April 23, 2012

LAS VEGAS - While former Crazy Horse Too strip club owner and convicted racketeer Rick Rizzolo waits in Taft Federal Prison for his scheduled June 12 release, a Federal Court Judge on April 19, 2012, handed down two ORDERS demanding that Rizzolo's ex-wife Lisa and stepmother Kimtran immediately surrender millions of dollars they are fraudulently holding. The Judge also sanctioned Kimtran's lawyer for Contempt of Court.

Now it's up to what's left of the Rizzolo's "Dream Team" led by veteran criminal defense attorney Herb Sachs to either continue advising their clients how to hide millions of dollars worth of fraudulently transferred funds and properties, or follow the Federal Court's orders and immediately turn over to beating victim Kirk Henry the $9 million plus interest in restitution Rick Rizzolo agreed in 2006 to pay in exchange for a shortened prison sentence, plus other court ordered debts totaling at least $17 million.

If the esteemed attorneys continue to aid and abet the family matriarchs in concealing Rick's assets from legitimate creditors, the team of counselors could also face personal sanctions or contempt charges as did their own Mr. Sachs who on March 20, 2012 was ordered to pay Kirk Henry's attorney fees for their hours authoring and filing a successful "Motion for Contempt Against Defendant Kimtran Rizzolo and her Counsel." (Sachs is Opposing the ORDER.)

..
      George Kelesis                 John Dawson                   Herb Sachs

Senior United States Judge Philip Pro made it perfectly clear as to what Lisa and Kimtran are now required to do with Rick's hidden money in spite of the advice of attorneys George Kelesis, John Dawson, and Sachs who up until now have done everything legal or otherwise to help the ladies hide the loot.

To abide by the court's orders, and unless "asset protection" attorney John Dawson conspired without the court's knowledge to secretly move their assets to another off shore haven, the Rizzolos should still have ample assets stashed in the Cook Islands to pay the $9 million plus interest long owed to Kirk Henry who has priority over all other creditors, with any excess going to the IRS.

The family should also have access to the $5 million they "borrowed" from Security Pacific Bank and never paid back; an annuity worth at least $7.2 million; cash backs from Lisa's refinancing of their three houses at the peak of the real estate bubble; and $1,052,996.03 received and hidden by Kimtran Rizzolo from the secret sale of the Philadelphia Crazy Horse Too.

(John Dawson of the firm Lionel Sawyer & Collins, and other unscrupulous lawyers who hide their criminal client's assets in the Cook Islands to avoid court ordered financial obligations, were not individually named, but accurately described by well respected asset protection lawyer and author Jay Riser as the "sleaziest of asset protection planners."  Dawson has his personal LS&C attorney attend all hearings involving the Rizzolos. It's speculated he fears future prosecution for conspiracy to defraud the United States government in the Rizzolo case.)

It's questionable whether there will be enough left over unless unreported cash can be recovered from Rick's casino cage safety deposit boxes to pay off the $5 million the FDIC (taxpayers) covered for the defaulted bank loan; the United States Marshals Service's costs; or the $2,192,000 fine levied by the City of Las Vegas for operating a public nuisance -- the remaining debts that impact taxpayers.

According to an Aug. 13, 2007 report by FBI Special Agent Anthony J. Mace, at that time there were plenty of assets the Rizzolos fraudulently transferred during their "sham" divorce to pay most of the creditors listed by the court (below):
 

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, etc.;  The Clark County Taxes owed on the Property with penalties and interest  The City of Las Vegas sewer lien  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  The restitution of US $1,734,000.00 plus accruals to the IRS  The assessment of US $500.00 plus interest  The fines of US $750,000.00 plus interest  The forfeiture of US $4,250,000.00 plus interest  The City of Las Vegas judgment lien of US $2,192,000.00 plus interest The IRS tax lien against Rizzolo for the 2006 individual income taxes of US $1,032,535.26 plus accruals

Rick Rizzolo is not allowed to declare bankruptcy per his 2006 plea agreement, so there is a real possibility that Lisa or Kimtran could be sentenced to jail if they continue to criminally hide the funds needed to make good on Rick's plea bargain promise to pay his court ordered debts.

        Rick Rizzolo                                                           Kirk Henry

There's speculation that both women are fed up with Rick and once harbored plans to keep his money they're hiding becaise he exposed them to federal indictments and made them "utterly miserable" for conspiring to hide his fortune.

But now that the court has ruled, it may have done Rick the ironic favor of forcing his women to make good on his debts, saving him the trouble of having to collect his ill-gotten stash from the mother of his children, and from the once poor, allegedly illiterate Vietnamese women who married and cared for his ailing father Bart during his final years.

Here are some of Judge Pro's most damning words in his April 19, 2012, ORDER denying Lisa Rizzolo's motion for summary judgment:

"However, a tort committed during the marriage by one spouse is considered a community debt, and the entirety of the community property is subject to a judgment against the tortfeasor spouse, even if the other spouse was not a named party to the suit.

Here, Kirk Henry was injured in September 2001, Plaintiffs filed suit against Rick Rizzolo in October 2001, and the Rizzolos divorced in June 2005. Because the conduct giving rise to Plaintiffs’ claim against Rick Rizzolo occurred during the marriage, Plaintiffs’ claim against Rick Rizzolo is a community debt.

Accordingly, Lisa Rizzolo’s share of the community property is 'subject to process by a creditor holding a claim against only one tenant' as set forth in NUFTA (Nevada Uniform Fraudulent Transfers Act) § 112.150(2)(c), and therefore falls within the definition of an 'asset' that can be fraudulently transferred. Moreover, to the extent the divorce settlement inequitably divided the community assets and Rick Rizzolo fraudulently transferred a portion of his share of the community property to Lisa Rizzolo through the divorce, Rick Rizzolo’s share of the community property that was fraudulently transferred to Lisa Rizzolo is also subject to the judgment.

This is so even though Rick Rizzolo settled the claim and breached the settlement agreement after the divorce. Married couples may not avoid community debts by (1) making fraudulent transfers through a divorce, (2) settling the community claim against the spouse who fraudulently transferred community assets, and (3) breaching the settlement agreement, leaving the spouse who fraudulently transferred community assets without sufficient means to satisfy the liability owed to the third party creditor.

As this Court already has determined a reasonable jury could find the Rizzolos’ divorce constituted a fraudulent transfer, the Court will deny Lisa Rizzolo’s Motion on this basis."

FULL 6 PAGE ORDER:
http://www.stevemiller4lasvegas.com/RizzoloLisaLosesMotion-04-19-12.pdf

But Judge Pro wasn't finished issuing ORDERS. Later that same day, he issued another ORDER, this time involving Rick's stepmother Kimtran:

"IT IS FURTHER ORDERED that Judgment is hereby entered in favor of Plaintiffs Kirk Henry and Amy Henry and against Defendants Rick Rizzolo and Kimtran Rizzolo. The transfers to Bart and Kimtran Rizzolo in the total amount of $1,052,996.03 were fraudulent pursuant to Nevada Revised Statutes § 112.180(1)(a) and therefore should be avoided. Defendants Rick Rizzolo and Kimtran Rizzolo shall make the necessary arrangements to transfer funds in the amount of $1,052,996.03 to Plaintiffs Kirk Henry and Amy Henry within thirty (30) days. Any such funds transferred to Plaintiffs Kirk Henry and Amy Henry shall be credited toward the Judgment entered against Rick Rizzolo and The Power Company in Kirk and Amy Henry v. The Power Company, Inc., et al., Case No.A440740 in Nevada state court."

FULL 12 PAGE ORDER:
http://www.stevemiller4lasvegas.com/RizzoloKimtranOrderedToPayHenry-04-19-12.pdf

Please take the time to carefully read the two ORDERS to get the full story of the beginning of the end of this eleven year long saga.

It's not anticipated that any of the remaining "Dream Team" attorneys will want to file another expensive appeal following the humiliating experience Rick Rizzolo's previous unpaid attorney Dominic Gentile suffered last month when he appeared inept before the Ninth Circuit Court.  In anticipation of losing, Gentile's law partners at Gordon Silver law firm withdrew their firm's representation of the Rizzolos several days prior to the Court's final judgment. They blamed their action on lack of payment, but members of the local legal community blamed it on embarrassment caused by one of their shareholders filing such a bogus appeal that it makes national news, then he gets stiffed after it fails!

In the event another inept, time consuming Ninth Circuit Court appeal is filed by attorneys for Lisa or Kimtran, a clawback action can be filed by the Henrys to recover squandered attorney's fees.

Here is some information about the two federal woman's prisons nearest Las Vegas that Lisa and Kimtran's legal team may need to share with their clients if Rick's money is not made readily available:

FCI Victorville Medium II
The Federal Correctional Institution (FCI II Medium) - Victorville in Adelanto, California, is a medium security facility housing male inmates with a satellite prison camp that houses minimum security female offenders. It is part of the Victorville Federal Correctional Complex (FCC). FCI II Victorville is located approximately 85 miles northeast of Los Angeles on Interstate 15.

 

The Federal Correctional Institution (FCI) in Dublin, California, is a low security facility housing female offenders. FCI Dublin is located 20 miles southeast of Oakland.
http://www.bop.gov/locations/institutions/vvm/index.jsp
 
MORE INFORMATION:

Ex-strip club owner Rizzolo told to pay paralyzed tourist
LAS VEGAS REVIEW-JOURNAL
Apr. 20, 2012
By Jeff German
The violations occurred after Rizzolo, suspected of having ties to organized crime, served 10 months of a one-year prison sentence for a felony tax conviction. Rizzolo pleaded guilty to the tax charge in 2006 to end a decade-long FBI racketeering investigation at the Crazy Horse Too.

Ex-Vegas club owner told to pay paralyzed man $1 million
Associated Press
Friday, April 20, 2012
A federal court has ordered an imprisoned former Las Vegas strip club owner to pay $1.05 million to a Kansas tourist left paralyzed after a dispute with club employees in 2001. An order filed Thursday in U.S. District Court in Las Vegas puts former Crazy Horse Too club owner Rick Rizzolo and his family on the hook to pay Kirk Henry and his wife, Amy Henry, within 30 days.

Former Strip Club Owner Ordered to Pay $1.05 Million
KLAS-TV 8 News NOW
Apr 19, 2012
By Guy DeMarco
LAS VEGAS - Former Crazy Horse Too strip club owner Rick Rizzolo and his family have been ordered to pay $1.05 million to a man who was paralyzed outside of the Crazy Horse Too in 2001. A federal judge Thursday ordered Rizzolo and his family to "make the necessary arrangements to transfer funds in the amount of $1,052,996.03 to Plaintiffs Kirk Henry and Amy Henry within thirty (30) days.