Rizzolo is going to prison - but he still got
away with
murder!
Vegas strip club owner pleads guilty to tax evasion, and his
corporation
pleads guilty to racketeering, but the story is far from over
INSIDE
VEGAS by Steve Miller
AmericanMafia.com
May 22, 2006
LAS VEGAS - Crazy Horse Too owner Rick
Rizzolo last week cut
a sweetheart deal with the Feds. He
did so reluctantly because
had he not cut the deal, his
father,
sister,
and brother
would have faced
prosecution
for racketeering, extortion, robbery, and tax evasion. He personally
copped out only to tax evasion, however, his corporation, The Power
Company, was allowed to plead guilty to racketeering. Because its a
privately held corporation in which his father, brother, and sister are
the only stockholders, the corporate guilty plea was the same as
individual guilty pleas.
Bart Rizzolo, Ralph Rizzolo, Annette Rizzolo-Patterson
(AmericanMafia Photo by Mike Christ)
Rizzolo now faces up to 16 months in prison,
will pay $1.7 million in back taxes, $5 million in fines, and his
corporation will pay
beating victim
Kirk
Henry $10 million to settle an attempted murder lawsuit. Rizzolo
also agreed to sell the Crazy Horse within a year, but his family will
be allowed to continue
skimming
its'
profits until the sale goes through. (Amazingly, the Federal Government
did not appoint a receiver to monitor the cash flow until the club is
sold).
Rizzolo is a degenerate gambler referred to on the Strip as a "Whale."
To be in this category, he must have access to almost unlimited amounts
of cash. For this one reason alone, the Federal Government should
immediately appoint a receiver.
Dead men can't testify
In
1995, Scott David Fau was beaten behind the Crazy Horse Too. Fau died
several hours later. At a purposely-delayed wrongful death trial, the
assailants were identified as club
bouncers
Darren Bray, Joe
Blasco, Paul Luca, and Mo McKenna. Since the January 2003 trial,
Blasco, Luca, and McKenna met untimely deaths. Ex-cop Bray is the only
living Crazy Horse employee involved in the beating. One other witness,
Dan
Kennedy, was sued for defamation by Rizzolo in 2000 following a
taped interview wherein he described the beating.
The same year Rizzolo sued Kennedy, he filed two more defamation
lawsuits -- one against his next door neighbor Buffalo Jim Barrier for
accusing him of racketeering, and
the other against Steve Miller saying I had accused him of "illegal and
unethical acts." His Barrier lawsuit is ongoing, and his lawsuit
against me was dismissed.
At the time, the Fau case was pending trial in the court of Clark
County District Judge Nancy M. Saitta. By coincidence, the
defamation lawsuits were also assigned to her court even though
both Barrier and Kennedy were expected to be called as witnesses in the
Fau case.
Never in the history of Sin City jurisprudence has a judge
accepted defamation cases brought against key
witnesses in another case in her court! Such an unprecedented
action is guaranteed to have a chilling effect on any witness. To prove
my point, at the Fau trial, Mr. Kennedy was no where to be found!
I believe Kennedy may have been threatened with
physical violence, or believed he would exacerbate the
pending defamation action if he testified, or he may have been bribed
by Rizzolo to not testify. Nonetheless, without his testimony, the case
was lost.
Scott Fau
(Morgue photo)
Mrs. Fau was
unable to afford to take depositions, or hire a pathologist as an
expert witness to testify how a person can die of blunt force trauma
several hours after being repeatedly kicked in the head. At trial,
Judge Saitta
instructed the jury to
not consider the after effects of
blunt force trauma in their deliberations. To no one's surprise,
the jury returned with a verdict within three hours in favor of
the Crazy Horse.
Prior to the Fau trial, editorials and
articles
I authored in a weekly newspaper forced Judge Saitta to
recuse from Rizzolo's defamation lawsuit against Barrier;
Barrier's
harassment lawsuit against Rizzolo; and two other cases involving
Rizzolo including his action against me. However, she steadfastly held
on to the Fau case even after repeated motions for her to step down.
But before she recused, she sanctioned Jim Barrier $4,500 because his
attorney was late to court. After stating on the record that "Rick
Rizzolo has a good name in the community," she told Barrier that his
attorney inconvenienced Rizzolo's lawyers
Dean
Patti and Tony Sgro,
and ordered Barrier to pay their legal fees. Her "good name in the
community" comment
also caused court observers to question her objectivity in the upcoming
defamation actions.
After Judge Saitta recused from the other four cases involving Rick
Rizzolo, they were for the first time
randomly
assigned to other judges.
Judge Nancy
M. Saitta
Today, Judge Saitta is
running
for a seat on the Nevada Supreme Court
...
During the G-Sting trial, Michael Galardi told the jury that Rizzolo
bragged that he had
"taken
care of Saitta." The jury found most of
Galardi's testimony to be credible and convicted several public
officials based on
much of what he had to say. Had Rizzolo not plea bargained, it would've
been interesting
to hear what he might have had to say about
his pal
Judge Saitta.
The million dollar question
As in the Galardi case that just wrapped up in Federal
Court that convicted three local public officials of accepting bribes,
now another topless bar
owner (Rizzolo) has pleaded guilty to a felony. Last year, Michael
Galardi did the same as Rizzolo and plea bargained. In the past when an
adult
business owner has pleaded guilty to a felony, the Las Vegas City
Council has
levied a hefty fine as they did with Michael's father Jack Galardi.
Tony Sgro, Vinnie Faraci
(AmericanMafia Photo by Mike Christ)
One difference between the Galardi and Rizzolo cases is that
Crazy Horse general manager Vinnie Faraci is one of LV Mayor Oscar
Goodman's law partner David Chesnoff's clients, and Crazy Horse
executive Al Rapuano along with the Rizzolo family are
clients of Goodman protégés, Patti and Sgro.
Oscar Goodman was also Rick Rizzolo's criminal defense attorney in 1985
when Rizzolo pleaded guilty to beating a man with a baseball bat. The
man died three years later of complications caused by his injuries. At
the time, Goodman was famous for requiring a half million dollar
retainer before he would take a client. (Mayor Goodman has never
disclosed this relationship during City Council meetings that
benefitted the Crazy Horse, which should be a violation of state ethics
law.)
Another glaring difference between the two cases is that the
Galardis never beat up or killed anyone.
The same circumstances that inspired Goodman to fine
Jack Galardi one million dollars in 2004, i.e. Galardi's son
Michael pleaded guilty to a felony, are with us again. The only difference
is that Galardi has never been a Goodman Law Firm client.
Rizzolo and Al Rapuano
(AmericanMafia
Photo by Mike Christ)
In
fairness, Goodman should now demand another million
dollar fine, but this time from his friends and former
clients Rick Rizzolo, Al
Rapuano, Rocco Lombardo, and Vinnie
Faraci. The taxpayers deserve the money after our city has
been humiliated nationally.
Our dirty laundry
aired in So. California
A political TV ad for an Orange County Sheriff candidate
is
now playing throughout Southern California. It features a photo of
O.C. Sheriff Mike Carona being hugged by Rizzolo in the
April
27 O.C.
Weekly story "Dirty, Stupid or Both" by R. Scott
Moxley.
This is not the kind of publicity Las Vegas wants in
Southern
California, our most lucrative tourist market.
CLICK HERE
TO VIEW THE ADVERTISEMENT
The next
rounds in the Rizzolo case
Clark County District Court Judge
Elizabeth Gonzalez will soon be asked to dismiss Rizzolo's
defamation of character lawsuit against Buffalo Jim Barrier because it
would be impossible to prove that Rizzolo's "character" could be
defamed.
Prior to that motion, on June 12, Judge Gonzalez has agreed
to hear a
Motion to Show Cause why a Prejudgment
Writ of Attachment and
Garnishment of a portion of Rizzolo's assets should not be
granted
in favor of Barrier in the likely event the garage
owner wins his upcoming multi-million dollar harassment
lawsuit
Rick Rizzolo and Rocco Lombardo
on Strip during happier times
Comments from readers:
Steve,
You have succeeded in
your messages against crime and
corruption yesterday, and all the days before. When you went home
last night, your job was over, for the day. Today, you have a new
job to pursue! It may be the same one as yesterday, but the
newness comes with each sunrise, as being refreshed is to have new
energy to ring the bells again. Passions..... are
eternal!
Lee (Colorado)
Rizzolo and Sheriff
Mike Carona
Steve:
Congratulations on your tireless
efforts on the Rizzolo case. I quess
when you go fishing it's better to bring home a partly filled boat,
than an empty one...so take heart from one who was totally ripped off
in the club ($23,000). Glad I didn't make a scene...but was very naive
to think
my objections, letters etc. would be acted on by the Better Business
Bureau, District Attorney, police, or Nevada Consumer Affairs. Live and
learn I quess. I
have not been back to Vegas since my testimony (before the Fed. Grand
Jury) three years ago...nor do I ever plan to go back. Thanks for your
tireless crusading from a fellow crusader.
Tom (California)
****
Camille Fau
Steve,
There is no Statute of
Limitations on murder.
Camille
Fau (Widow of Scott David
Fau)
Steve:
We win ONLY if Rizzolo is
convicted of 2nd degree murder...I am
not aware of specific items brought against him in his plea agreement,
but it is still a fact that a guy ultimately DIED of injuries suffered
from the blunt trauma of a baseball bat wielded by Rizzolo. Also, if he
only gets 16 months with half of it under "house arrest" it should be
at SUPERMAX in either Colorado or California. If Sgro brings up
probation, I think they just ought make him do 10 years without parole
"hard time." How the F--K can a guy get "country club" considering all
the crimes that have been committed? Prostitution, drugs, robbery,
theft, murder, conspiracy, bribery, and the beat goes on. There better
be some heavy hitting happening on Oscar, McDonald,
Jones.
Mike (Las Vegas)
****
Kudos!
Dogged reporting lands a very
corrupt man in jail. He
should feel lucky he is getting off
this easily.
RL (Arizona)
****
I like Rick
Rizzolo. He goes to Piero's every Thanksgiving and
feeds hundreds of needy people. And
he treats them with dignity. - Mayor
Oscar Goodman (Las Vegas)
****
Steve,
Congratulations! I read this morning, that all 17 defendants signed the
plea agreement. I think the main players got away with a sweet deal, to
say the least. Nevertheless, none of this would have ever happened
without your bulldog perseverance. The families of his victims should
be very grateful and the community should give you a metal. Most people
see injustice and just sit around watching it happen. You made sure
that
something was being done about it.
What is interesting is that the government is willing to allow the
guilty parties to continue running the club until it's sold. Rizzolo
recently told someone, that the report that “he only has a year to sell
the club” isn't true. He said, that “he could conceivably own it for an
indefinite period of time”. Example: if he is unable to find a buyer
who can be approved for licensing. Let's say after 6 months he sells it
to someone. The sale is contingent on licensing approval (which can
take up to a year to obtain). Let's further say that the buyer gets
denied at the 11th month. Rizzolo can now take the club back and put it
on the market again. The government will allow him more time to sell it
and to get the buyer approved. For the sake of speculation, let's say
that Rick wants to hold on to the club for an extended period of time,
because after all, he still gets the profits until it's sold. All he
has to do is set an unrealistic price (like the one that he's asking
$30 - $40 million). In this case, no one will ever buy it. Does the
word “loophole” come to mind?
In a similar case in Atlanta (Gold Club - Steve Kaplan), the government
took possession of the property immediately upon the plea signing. They
closed the club, tore down the building and sold the property to a
developer, with a covenant that the property could never be used for a
strip club again. In most cases of business fraud, the business entity
goes down with its operators. But that all happens in the real world.
After all, this is Las Vegas.
Best regards,
Al (Florida)
****
Do you suppose the Feds would make such a stupid deal if they didn't
have something better up their sleeve? Hard to say, I bet.
Their real targets should be McDonald, Saitta and the ole Gin Mill...
Oscar! Then, next week, they can get the rest of them. There's just too many
"deals" going on.
John (Las
Vegas)
****
Hi
Steve,
Yes
I agree Goodman should fine Rizzolo. Then Goodman should send the money
to ME!
What a bunch of
morons. I used to watch
Warner Bros. cartoons for entertainment that was totally outrageous.
Now I read your emails about Las Vegas. What has been going on there is
just as insane as any cartoon I have seen lately. Ok?
David (Arizona)
****
Steve:
I heard that Rizzolo is
trying to stall the government by putting
the club into contract for sale, then killing the deals by finding
unreasonable escape clauses and claiming the buyers didn't perform.
This has happened twice now; with Brugnara and another group (two weeks
ago). He's using this tactic to keep possession of the club and
continue
his activities and avoid a receiver from being placed in the property
by the federal govt. (by showing them he is "acting in good faith" to
find a buyer - to get the govt. and Henry their money. Of course
Rizzolo has no intention of doing any of the above or he would have
closed the deal with Brugnara in January. I can't believe that
the govt. is allowing this guy to remain open for business and continue
to lie to them about "sale of the club" to stall potential receivership
action by the govt. I heard that Rizzolo said he would burn the club
down rather than lose it to Henry or the govt.
Joseph (Las Vegas)
****
Steve:
So it seems that Mr. Rizzolo and company have somewhat won the battle. However
perception has its price as in anything in life. He will lose the WAR.
After all plea bargains have
been accepted by the courts and all defendants have been convicted,
some will serve a bit of time, and others including Rick will get
probation.
This is where the fun starts for
the Government. First off, all convicted have lived large lifestyles
for a very long time, and not to mention, never ever had to ANSWER to
anyone.
The
government will make sure that the key players get the worse probation
officers known to mankind. They will make the nights of
getting drunk and gambling and partying go away. Doing Illegal drugs and sleeping with a new chick every
other night will also be gone. The days and nights of
traveling anywhere at anytime will be gone. The days and nights of going out and buying anything they
want - if they want to buy a new car or home - they better check
in. If they want to do anything of any large scale,
they better check-in with their P.O. Life will become a real check-in
and check-out. I
know all about it.
The days and nights of
his new best friend knocking on his door anytime he or she wants
to check up on him, saying "Hey Rick, please piss in this cup for me, I
realize its 5:00 AM, but oh well, life is tough," will become a real
drag.
Do
you think that Mr. Rizzolo, who for his whole life has never
had to answer to anyone before now, will tolerate this person
in his life for at least 3-5 years BREAKING his balls every chance they
get?
Ken (Las Vegas)
****
Steve:
I feel sorry for whomever
sent you that email... it screams of sour grapes. I am not saying
anything about the plea bargain one way or the other... but the person
who sent you that email is... dare I say naive??... Come on....If you
can get the deal, what makes you think you can't get the right PO's? A
deal is a deal... and in this case, it appears the government got the
short end of the stick.... take it or leave it.
Gus (Ohio)
****
Though I
believe the punishment doesn't fit the crime, I certainly hope the
Nevada Gaming Control Board nominates Rizzolo for the Black
Book, the Feds appoint a receiver to run the club so that the
skimming can't continue. and the crooked politicians, cops, DA's, and
judges who helped him keep this criminal enterprise in business, are
taken down.
In the meantime, next door neighbor Buffalo Jim Barrier is
standing by with his trusty Nikon if any more hapless souls end up
bloodied, crippled, or dead, or the place mysteriously burns down
during the time the Feds have given the Rizzolo's to sell the joint. If
anything untoward happens, my readers will be the first to know.
* If you would like to receive Steve's frequent E-Briefs about Las Vegas'
scandals, click here: Steve Miller's Las Vegas E-Briefs
Copyright © Steve Miller
email Steve Miller at: Stevemiller4lv@aol.com
