Desperate to keep hidden
assets and not pay
court ordered bills, convicted
judge "I can't even afford
a new attorney."
AM, 7/10/08, Rizzolo entertains in $3,000 per night private booth at Body
INSIDE VEGAS by Steve Miller
February 23, 2009
LAS VEGAS - In an ad nauseam
test of our local and federal court's patience in trying to collect tens
of millions of dollars in court ordered debts, convicted racketeer Rick
Rizzolo and his ex-wife Lisa continue to thumb their noses at the IRS,
City of Las Vegas, and an unpaid beating victim.
On the same day beating victim
Henry's attorneys filed a 23
page Motion asking that a Magistrate's devastating ruling be overturned
-- a ruling (see
Feb 9, INSIDE VEGAS) that killed Henry's ability to be paid for his
life long injuries suffered in 2001 at the Rizzolo's now-defunct Crazy
Horse Too topless bar -- Rick Rizzolo had the chutzpah to file the following
Opposition that he wants the court to believe he authored in Proper Person
because he's too broke to afford an attorney -- a document that if taken
seriously may trigger the ultimate test of the legitimacy of the United
States District Court, District of Nevada.
Though it seems like it will
never end, I'm attempting to accurately document every detail of this precedent
setting case because if Rick Rizzolo succeeds in having plea bargained
for a feather light sentence in exchange for agreeing to pay $27 million
in court ordered debts, then gets away with not having to pay his debts
based on him hiring a team of shyster lawyers including the
brother of a federal court judge to stage a "sham"
divorce; form phony trusts, LLC's, and off shore accounts to hide assets
from the IRS, Henry, and others while Rick pleads poverty, it will be a
signal to every other crook with lots of cash that they can do the same,
and that crime really does pay -- especially in Las Vegas.
However, Rizzolo's words
totally contradict his criminal defense attorney Tony Sgro who when asked
at a Las Vegas City Council meeting if Rizzolo would have to pay Kirk Henry
from his personal assets in the event the Crazy Horse Too did not sell
for an amount sufficient to pay all the Rizzolo's debts, Sgro clearly replied:
"...the Henrys are to be
paid whether or not the sale of the club yields sufficient funds." - Attorney
"OK. That answers my question."
- Councilman Steve Wolfson
months after Sgro said his client was personally responsible to pay Henry,
on January 30, 2007, Councilman Wolfson's wife, the Honorable Clark County
District Court Judge Jackie Glass (left), turned Henry's case upside down.
Glass -- in spite of Sgro's admission -- refused to allow Henry's attorneys
to locate Rizzolo's personal assets saying:
"Stop, stop, please. I did not draft the settlement agreement. You have
to wait for the sale of this business."
"You have to wait for the
sale of this business?"
Why, after Henry has had
to wait in a wheelchair for over six years to be paid? Enough is
It was Rizzolo's attorney's
damning words, along with "35
to 40 beatings in three years" according to the city attorney, that
inspired the council to permanently shut the Crazy Horse down, along with
Sgro's admission that Henry would get paid one way or the other, not some
arbitrary government action as Rizzolo wants us to believe.
Glass should know as well
as her husband that the business will never be able to yield enough to
pay even a fraction of the Rizzolo's debts, and that Henry is not in first
position to be paid. A California bank is owed over $5 million ahead of
him. Futhermore, the shuttered Crazy Horse is currently not even worth
the $5 million that's owed the bank!
Then, out of the blue, a
Federal Magistrate who was unfamiliar with the case, upheld Glass' decision
leaving Henry to wait for the shuttered bar to sell for some ungodly amount
of money in order for him to get paid even a fraction of what he's owed.
The husband and wife team
of Wolfson and Glass
have twice expressed conflicting legal opinions when it comes to the benefit
of Rick Rizzolo and his family. On January 13, 2009, the couple's opinions
clashed again when Judge Glass was scheduled to sentence the Rizzolo's
26 year old delinquent son Dominic
for Battery With The Use of a Deadly Weapon.
Never mind that she already
had one case involving the Rizzolos on her docket -- the Henry case --
Judge Glass gladly accepted Dominic's case after he pled guilty and just
before sentencing. Two separate cases -- one civil, the other criminal
-- involving the same family being "randomly" assigned to the same judge?
Quite a coincidence...
Judge Glass' husband exclaimed
on his criminal defense law firm's website:
"People convicted of violent crimes have their prison sentences impacted
by the harm done to their victims." "Any person who uses a... deadly weapon...
in the commission of a crime shall be punished by imprisonment in the state
prison for a term equal to and in addition to the term of imprisonment
prescribed by statute for the crime."
even though Dominic (left) tried to stab a man to death during an extortion
attempt, Glass ignored her husband's words and coddled Dominic by giving
him probation after LV Metro Police asked that he be charged with attempted
Her actions caused some to
question whether she and her husband ever discuss business after work hours?
And whether it's a conflict of interest for two married public officials
to simultaneously stand in official judgment of the same person as they
have with Rick Rizzolo?
Judge Glass' refusal to allow
an examination of Lisa
Rizzolo's hidden assets after her husband told Rizzolo's attorney "OK.
That answers my question," is probably part of the reason the Henrys decided
to take their case to United States Federal Court. Then, without notice,
Magistrate Judge George Foley on February 3, 2009, upheld Glass' ruling
and all but destroyed Kirk Henry's chances of ever collecting the $9 million
dollars Rizzolo promised to pay him in exchange for a feather light prison
Meanwhile, the phony offers
to purchase the Crazy Horse dried up and local real estate values crashed
leaving Henry's $9 million settlement from the sale of the topless bar
in Neverland, along with the $5.5 million Rizzolo and his wife owe IRS;
$2.3 million they owe the City of Las Vegas; plus around $9 million they
owe to others.
Keep in mind that Rick and
Lisa were married at the time the crimes were committed and the debts incurred.
The money and property she hid was/is community property, and is subject
to seizure now that it is clear that Rizzolo was personally responsible
to pay his debts according to his lawyer and his signed plea agreement:
"...the obligation to make
said payment upon the closing is not contingent upon the realization
of net proceeds from the sale sufficient to make the NINE-MILLION DOLLARS
Could this be made any clearer
to the two esteemed jurists?
Over eight years have passed
since Kirk Henry's neck was broken. Now is the time for the federal court
to put Judge Glass' and Magistrate Foley's bogus rulings in the trash can,
and go after Lisa Rizzolo and her hidden fortune no matter who at City
Hall or in Washington D.C. it may offend. (Senator Harry Reid is in
business with one of Mayor Oscar Goodman's law partners.)
while Councilman Wolfson and his wife are reported to be exploring runs
for higher office. And while Rizzolo's
friends including Mayor Oscar Goodman (shaking hands with Wolfson)
wield tremendous influence and money around election time. And while Kirk
Henry sits endlessly in an electric wheelchair waiting for almost a decade
for his settlement. And while Rick Rizzolo is a regular fixture in our
town's most expensive venues seen squandering tens of thousands in cash
on a nightly basis.
The Federal Court unexplainably
put a defrauded
California bank in first position to collect the initial $5 million in
proceeds from any sale of the Crazy Horse further damaging Mr. Henry. Rizzolo
borrowed the money using the bar as collateral, then refused to pay it
back -- giving it to his ex-wife to hide off shore. The bank soon went
under, but I cannot understand why this personal injury and Uniform
Fraudulent Transfer Act case should include the bail out of a failed
bank in preference to paying a broken man what he's owed?
Rizzolo keeps using the city's
closure and the Department of Justice's seizure of his business as his
excuse that the devaluation of the club was not his fault; "I could not
predict the government would seize the business and property, then refuse
to license it," Rizzolo whined.
Rizzolo then tries to convince
the court that he had sold the Crazy Horse for anywhere between $29 and
$48 million dollars, but the "government" somehow screwed up his sales,
therefore he should not be forced to pay his debts from his
wife's hidden assets.
He neglects to say that the
initial $48 million dollar "buyer" was his straw
man, and the subsequent buyers were determined by the Department of
Justice to be just as unqualified based on their ties
to Rizzolo, or business dealings with organized crime members.
United States Department of Justice, District of Nevada
Tuesday, January 23, 2007
plea agreements require The Power Company, Inc. to sell The Crazy Horse
Too by June 1, 2007. The Government has the right to disapprove the
sale if the buyer is a close relative or ongoing business partner of Rizzolo’s,
is a felon, or has business dealings with organized crime members or groups.
FULL PRESS RELEASE: http://www.usdoj.gov/usao/nv/press/January2007/Rizzolo012307.htm
It's now up to Federal Judge
Philip Pro, the presiding judge in this case, to comb through all this
information and decide whether to allow Kirk Henry to locate and seize
Rick and Lisa's hidden assets. According to the FBI,
there's plenty to go around, so the IRS should be close on Henry's heals
in the event Judge Pro has had his fill of the obvious subterfuge.