Did Lisa Rizzolo
to the IRS?
U.S.C., 7207, makes it a Federal crime for
anyone to willfully file
a Federal income
tax return knowing it to
INSIDE VEGAS by Steve Miller
January 25, 2010
LAS VEGAS - On May 17, 2006, Vegas
Rick Rizzolo entered into a plea
agreement with United States Attorney for Nevada Daniel
Bogden. In it, Rizzolo agreed to plead guilty to tax evasion, and to
pay the following amounts to the IRS in order avoid a long prison sentence,
and to secure the government's promise that it would not indict
his father, sister, and brother:
"The restitution of US $1,734,000.00 plus
accruals;" "a fine of US $750,000.00 plus interest;" and a "tax lien for
the 2006 individual income taxes of US $1,032,535.26 plus accruals." Total
- $3,516,535.26 not including penalties and interest.
The former Crazy Horse Too topless bar
owner also agreed to pay beating
victim Kirk Henry $9 million dollars. Henry was crippled in 2001 after
he disputed a padded bar tab, and his lawsuit inspired the present federal
case against the Rizzolos.
Rick Rizzolo ended up spending less than
an year in federal prison. Bogden kept his word by letting Rizzolo's relatives
off scot-free, but Rizzolo welched on his side of the deal.
On May 24, 2005, three weeks prior to beginning
his year long plea negotiations, Rick divorced his wife Lisa. Within weeks
of their divorce, she mortgaged the couple's three homes, and began stashing
their cash in a Cook Islands bank. However, she wasn't supposed to tell
But on June 5, 2009, Lisa spilled the beans
in a deposition.
She reluctantly revealed the whereabouts of cash she's been generously
doling out to her ex-husband since setting up the foreign account -- however,
she did not inform the IRS of her generosity, or the presence of the money
stashed in a Cook Islands bank!
It's more than possible Lisa Rizzolo willfully
on her income tax returns -- that her husband is willfully refusing
to pay his back taxes, fines, accruals, penalties and interest -- and the
IRS has been ordered to do nothing about it!
Ever since her June 2009 deposition, Lisa's
attorneys have been desperately trying to get the court to seal
the information she revealed even though it involves millions and millions
of dollars owed to U.S. taxpayers, and ill-gotten money she derived during
the term of her marriage to Rick. Nevada is a Community
Property state, and the couple were married during the time Rick was
engaged in obscenely profitable criminal activities.
The Cook Islands are owned and governed
by New Zealand, a country that has a treaty with the United States that
prevents something they call "double taxation."
STATES - NEW ZEALAND INCOME TAX CONVENTION was signed at Wellington,
New Zealand on July 23, 1982 by then-President Ronald Reagan.
The document describes itself as; "A CONVENTION
BETWEEN THE UNITED STATES OF AMERICA AND NEW ZEALAND FOR THE AVOIDANCE
OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO
TAXES ON INCOME."
It also states: "...dividends derived from
New Zealand will be subject to a tentative withholding tax of 30 percent."
So the Rizzolos are paying the citizens
of New Zealand thirty percent of the interest derived from their fortune
stashed in a Cook Islands bank, i.e., Rick and Lisa have so far gifted
the citizens of New Zealand hundreds of thousands of dollars in that country's
withholding tax in exchange for protecting an American mobster's fortune,
and keeping millions of dollars from benefiting U.S. citizens.
In addition, the "asset
protection" scam is making a mockery of our nation's justice system!
It took from 1982 until 2009 for anyone
in our government to take interest in the Cook Islands scam. On March 2,
2009, United States Senator Carl Levin (D - Michigan) finally named the
Cook Islands as a "probable
location for U.S. tax evasion."
Senator Levin's "Stop
Tax Haven Abuse Act" is in the first step of the legislative process.
Introduced bills and resolutions first go to committees that deliberate,
investigate, and revise them before they go to general debate. For this
reason, the Rizzolo's stashed cash may continue to be safe from IRS seizure
for months or years depending on whether the Act ever makes it out of committee
to be ratified by Congress.
In the meantime, there are plenty of good
banks still left in the USA where funds are protected by the FDIC. So,
why did Lisa send her and her husband's cash outside our country? The answer
is too obvious. To avoid paying her and her husband's debts.
Back to the falsified income tax returns:
"Any person who willfully delivers or discloses to the Secretary any list,
return, account, statement, or other document, known by him to be fraudulent
or to be false as to any material matter, shall be fined not more than
$10,000 ($50,000 in the case of a corporation), or imprisoned not more
than 1 year, or both." - 26 U.S.C. § 7207
Ms. Rizzolo is not mentally retarded, and
she was not coerced during her deposition. Take a look at her
testimony and decide for yourself if she knowingly filed false income
To date, not one penny of Rick and Lisa
Rizzolo's court ordered debts have been paid, and even the IRS can't touch
the money while it's stashed in the Cook Islands thanks to a local, politically
connected asset protection lawyer.
IRS can still do something to bring justice to this case! They
can attach money Lisa imports back into our country to pay her and her
husband's extravagant lifestyle expenses. Or they can seize her cars, jewelry,
and what's left of the equity in the three houses.
deposition she was asked if she filed with the
IRS that she has; "an interest in or signature or other authority over
a financial account in a foreign country?" She answered "No."
Then she was asked; "And in respect to
the (IRS) question, 'Did you receive a distribution, or were you the grantor
of a foreign trust?' You again said 'No.' Correct?"
Lisa answered, "That's what is marked here,"
(pointing to several years of her tax returns).
But even with this information, the
IRS has done nothing, and the case is completely stalled in Federal
During the past two months, the only movement
in this eight-year-long case consists of a series of ridiculous
objections recently filed by Lisa's attorneys asking the court to seal
all records relating to the Cook Islands account and any other financial
information already discovered or to be discovered in this case, and the
weird document (below) filed by Rick Rizzolo's former jail house lawyer
"Spud" Kimsey challenging the court's jurisdiction to hold him in contempt
for practicing law without a license. That's it. No other action or progress
for over two months!
The above document and Lisa Rizzolo's motions
to seal pertinent financial records are currently the only issues being
considered by the United States Federal Court in this case.
To the best of my knowledge, the
IRS has apparently written off the Rizzolo's tax obligations.
I've always paid my fair share of taxes.
I file my returns on time, and seldom pay penalties for underestimating
what I owe.
The only time I wavered was after my father
died in 1984. I soon learned that I owed Uncle Sam around $45,000 in inheritance
taxes. I didn't have the money, so I was forced to fall behind.
Within days of discovering my shortage,
I received a call from a very unfriendly IRS agent telling me I had a limited
time to come up with the money or the IRS would begin attaching my assets.
I tried to explain that I couldn't, and needed to set up a payment schedule.
He said, "Why don't you sell your Porsche and pay up now?"
I said I wouldn't, and that I was entitled
to a payment schedule if I agreed to pay all penalties and interest. The
agent reluctantly agreed.
It took me over two years to clear my debt
with the IRS. That was during the Reagan administration, and two years
after the president signed the New Zealand Convention.
Had I known I could have liquidated my
real-estate assets, hired a politically connected attorney, and stashed
my cash in the Cook Islands, I may have never had to pay that inheritance
tax, or any other debts I owed at the time.
What is happening in the current KIRK HENRY
v. RICK AND LISA RIZZOLO case is causing me to completely lose faith in
my nation's justice system, and the U.S. Treasury's ability to collect
taxes under the present goof
I believe the Rizzolos are being protected
based on whom
they hired to hide their assets, and his connections to the Federal
Court and Washington, D.C.
How else could a Federal case originating
in 2001 take this long to resolve?