The  s - - t  is about to hit the fan!

Rizzolo's parole officer petitions the court.
Related jury trials to start on March 9.

"On December 17, 2009, the offender was asked to sign a
Payment Schedule for U.S. District Court Clerk in which
he was requested to make monthly payments towards
his restitution and fine. Mr. Rizzolo declined, stating
that he would not sign the document at the advice
of his attorney." - Eric Christiansen, U.S. Probation Officer

INSIDE VEGAS by Steve Miller
AmericanMafia.com
March 1, 2010

LAS VEGAS - This week's column is extra long in order to prepare readers for several upcoming trials that have long been awaited.

Based on three events that took place during the month of February 2010, it's becoming obvious that United States Federal Judge Philip Pro has had enough of racketeer Rick Rizzolo and his ex-wife Lisa's shenanigans.

The first event occurred on February 22, when U.S. Magistrate Judge George Foley ordered Rizzolo to pay attorneys for unpaid beating victim Kirk Henry $5,000 in legal fees.

Henry's lawyers Stan Hunterton and Don Campbell successfully argued that Rizzolo had hired James "Spud" Kimsey, an ex-con paralegal, to ghost write over fifteen Motions and court filings on which Rizzolo signed his name as a Pro Se litigant, i.a., acting as his own attorney. However, Rizzolo did not mention that he was not the actual author of the documents as required by law.

Kimsey was a pawn used by Rizzolo to stall the case for at least six months, and Kimsey is being prosecuted for Contempt of Court.  However, it's Rick Rizzolo who should be held responsible for paying Kimsey to author numerous court filings that Rizzolo signed.  I hope Judge Pro disposes of the Kimsey case, and puts the onus on Rizzolo for tampering with the justice system.

The second event occurred on Friday, February 26, when the Federal Court issued a surprise ORDER scheduling multiple civil and criminal trials in which Rick Rizzolo is the Defendant:

"Attached hereto is a list of the civil and criminal cases that are presently scheduled for the two-week stacked trial calendar before the Honorable Philip M. Pro, United States District Judge, at Las Vegas, Nevada, commencing on TUESDAY, MARCH 9, 2010 at 9:00 a.m. in Courtroom #7C."

The list of cases has not yet been released with the exception of Kimsey's Contempt of Court case. Other cases are expected to include Henry's three Motions to Compel Rick Rizzolo to produce financial documents; and Henry's Uniform Fraudulent Transfer Act case against Rick and Lisa Rizzolo for hiding their fortune in the Cook Islands to avoid seizure.

But the most intriguing court action of last month came when United States Parole Officer Eric Christiansen petitioned the court to modify Rizzolo's conditions of release based on his refusal to sign a Payment Schedule to pay Henry, the IRS, and other court ordered debtors. (Rizzolo in dark glasses. AmericanMafia.com photo by Mike Christ)

Chrisiansen wrote: "The Judgment and Conviction clearly orders the offender to pay $11,723,340 in restitution, jointly and severally (emphasis added), with the Power Company and a $250,000 fine. However, the Plea Agreement Section I.1 states, 'As part of the global pleas being taken in this case, The Power Company, Inc. is pleading guilty to a violation of Title, 18, United States Code, Section 1962(d) and agreeing to make restitution to Kick and Amy Henry in the aggregate amount of Ten Million Dollars upon the sale of the Crazy Horse Too. Defendant Rizzolo, as principle owner of The Power Company, Inc. meet its obligation to make restitution to Kirk and Amy Henry in aggregate amount of Ten Million Dollars upon the sale of The Crazy Horse Too....' ”

The obviously confused parole officer then writes; "Rizzolo contends that he and the Power Company, Inc. entered into a plea agreement with the Government to make restitution to Kirk Henry upon the sale of the Crazy Horse Too. Furthermore, Rizzolo lamented that the Government forfeited the Crazy Horse Too for restitution purposes and through neglect caused the property's value to be substantially diminished (emphasis added). Rizzolo objected to making any payments until the Crazy Horse Too is sold per his plea agreement."

"In order to avoid ambiguity, it is requested that Rizzolo’s conditions of supervised release be modified as requested above. It is therefore requested that the Court issue a summons for the offender and that a hearing date be calendared," wrote Christiansen.

Judge Pro scheduled a hearing on Christiansen's petition for Monday, March 22, 2010, at 2:00 p.m. in Courtroom 7C of the Lloyd D. George Federal District Courthouse located on the corner of Las Vegas Boulevard and Bridger Avenue.

These trials and hearings may signal the end of the road for Rick Rizzolo and anyone else who is unethical enough to assist him in keeping the money pledged for restitution, fines, and penalties that he agreed to pay "jointly and severally" during his 2005 plea negotiations to Henry, the IRS, and others in trade for a light prison sentence.

The government postponed Rizzolo's year and a day prison sentence for twelve months to give him time to sell his night club, but there were no qualified takers.

During that time, the feds made it very clear that no one connected to organized crime would be approved to purchase the bar.
 

The United States Department of Justice, District of Nevada  Tuesday, January 23, 2007 PRESS RELEASE Additionally, defendants’ 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

However, following his imprisonment in April 2007,  two United States Attorneys let down their guard and began accepting offers from questionable persons, while giving Rizzolo the unprecedented luxury of being able to approve a sale from his prison cell.

The Acting and Assistant United States Attorneys took flack for allegedly being on Rizzolo's payroll, and trying to keep secrets from the public.

Thank God no judge in his right mind would approve such a horrible Motion, and the document became public record with the names of the three purported buyers published here on AmericanMafia.com for all to scrutinize.

It was soon discovered that all three had ties to Rizzolo, and were summarily disqualified by other government officials.

By no fault of the government, the value of the Crazy Horse Too and its real estate plummeted because the lucrative drug dealing, prostitution, and embezzlement was stopped by city and federal officials. The dilapidated converted warehouse under the Sahara Overpass became an old mare in a stable of new high tech strip clubs.

The only way the Crazy Horse could continue raking in the extraordinary $5 million to $6 million a year profits Rizzolo often bragged about, was to continue doing business in the same illegal manner that brought the club's demise.

By no fault of the "Government" that Rizzolo blames for his club's devaluation, was Kirk Henry and others not paid. It was Rizzolo himself who was singularly responsible for the Crazy Horse Too's down fall, and after he was imprisoned, the broken down topless bar found no qualified suitors. Today it sits deteriorating and unwanted in the desert sun thirty-three months after the last patron staggered through the gold clad front doors.

But Rizzolo was highly exaggerating his former club's worth and the validly of the buyers who he claimed made offers for it.

Below is a highly CONFIDENTIAL letter that was leaked  to INSIDE VEGAS by a source employed at Patti, Sgro & Lewis, one of the law firms representing Rizzolo's interests. This is the same firm that claimed that Rizzolo's financial records were destroyed in a flood in their second floor offices.

I'm amazed the following document survived that purported "flood," and I bet Patti, Sgro & Lewis wish it hadn't because it destroys their client's claim that legitimate buyers were making outrageous offers for his club.

In this October 4, 2007 letter, Rizzolo's lawyers unsuccessfully attempted to interest casino owner Steve Wynn in purchasing the Crazy Horse Too. However, they also revealed that all the buyers Rizzolo claimed were willing to pay up to $48 million for the bar "failed to perform" their contracts. The letter boldly states; "Other buyers were also approved, but to date, no buyer has performed its contract," proving Rizzolo was full of hot air, and making moot his main excuse for not paying his debts -- the government devalued his property  -- a property no legitimate person would buy for enough to bail Rizzolo out.
  (Click HERE for a printable copy of this document if needed in court to prove there were never any legitimate offers.)

Wynn gave the letter all the respect it deserved. He trashed it!

The esteemed local law firm  "placed its credibility in issue" by authoring the secret Wynn letter, and letting it be slipped to a reporter (me).

In addition to letting the Wynn letter slip out of their hands, Patti, Sgo & Lewis mis-informed the court when they claimed that all of Rick and Lisa Rizzolo's financial files were "destroyed in a flood."  They simply have a problem when it comes to protecting confidential information, but they don't seem to have a problem doing everything legal (and not-so-legal) to keep a quadriplegic (Kirk Henry) from getting paid for his injuries suffered at the hands of a Crazy Horse Too manager!

In the following page from their web site,  Patti, Sgro & and Lewis stupidly revealed their firm's true specialty -- "MISSING INFORMATION" -- losing or destroying client's records. Take a look at their "areas of practice" page (below) to see what I mean.

                                (Click HERE to see the actual page before they correct their ironic error.)

According to U.S. Magistrate Judge George Foley: "Patti, Sgro & Lewis has, in fact, placed its credibility in issue by stating that it is unable to produce client records that it had a legal duty to retain and which one would expect an attorney to retain (emphasis added). Patti, Sgro & Lewis’s assertion that client records may have been destroyed in a flood was uninformative as to when the flood occurred, where it occurred and extent of records destroyed. It is reasonably incumbent on Patti, Sgro & Lewis to demonstrate the validity of its explanation that records relating to Mr. and/or Mrs. Rizzolo were or may have been destroyed in a flood. The discovery sought by Plaintiffs is therefore a reasonable follow-up to its efforts to obtain relevant records from the Rizzolos’ attorneys. Patti, Sgro & Lewis has not demonstrated that it will incur a substantial burden and expense to locate and produce records relating to a flood which apparently occurred within the past several years."  -   Motion to Compel - #129 - ORDER delivered by George Foley, Jr., United States Magistrate Judge, June 30, 2009

No subsequent records of a flood were ever produced, and the Rizzolo documents still remain as "MISSING INFORMATION" along with many other important documents that were intentionally shredded on April 3, 2007.

Such idiocy displayed by licensed officers of the court leads me to believe that James "Spud" Kimsey should be given an award by Judge Pro instead of being prosecuted for Contempt of Court.

Spud's work product on behalf of Rizzolo displayed a knowledge of the law and writing ability far beyond the scope of all of Rick Rizzolo's attorneys combined. Spud Kimsey could teach the finer points of law to attorneys Tony Sgro, Dean Patti, Mark Hafer, and Kenneth G. Frizzell, III alias "The Ticket Fixer."  In fact, I believe that Spud -- had he taken a different path in life -- would have made a better jurist than United States Federal Judge Kent Dawson -- a true pillar of our federal judicial system, and the judge who let 15 Crazy Horse Too employees off with slaps on the wrist while his brother was busy hiding the Rizzolo's fortune off shore.

Instead, it looks like Spud is being used as a fall guy for the man who employed him.  Kimsey is scheduled to stand trial for Contempt in March 2010.

In the meantime, while under Eric Christiansen's supervision, Rizzolo -- according to Christiansen's records -- may have loaned money to Vinny Faraci who is a convicted felon and described as a member of the Bonanno crime family.

According to SUBPART A—UNITED STATES CODE PRISONERS AND PAROLEES § 2.204 CONDITIONS OF SUPERVISED RELEASE.(Pg. 241) (5) Prohibited conduct: (v) The releasee shall not associate with a person who has a criminal record without permission from the supervision officer (emphasis added).

Evidently, Christiansen did not give his permission for Rizzolo to hang out with ex-cons like Faraci and Kimsey, and that should also grab Judge Pro's attention!

And then there's this fascinating paragraph from the same CONDITIONS OF SUPERVISED RELEASE:

(ii) The releasee shall make a diligent effort to satisfy any fine, restitution order (emphasis added), court costs or assessment, or court-ordered child support or alimony payment to which the releasee is subject. The releasee shall provide financial information relevant to the payment of such a financial obligation that is requested by the supervision officer. If unable to pay such a financial obligation in one sum, the releasee shall cooperate with the supervision officer to establish an installment-payment schedule.

(b) Restitution Orders. Where a prisoner applying for parole is under an order of restitution, and it appears that the prisoner has the ability to pay and has willfully failed to do so (emphasis added), the Commission shall require that approval of a parole release plan be contingent upon the prisoner first satisfying such restitution order. The prisoner shall be notified that failure to satisfy this condition shall result in retardation of parole under the provisions of §2.28(e).

(d) If the releasee refuses to accept the terms of the plan in general, refuses to accept the installment payment schedule, and/or refuses to sign the plan (emphasis added), the U.S. Parole Commission will be notified. The U.S. Parole Commission will then resolve any outstanding disputes as to terms and installment payment schedules, complete the plan as necessary, and make the terms and schedules contained therein themselves a special condition of supervised release.

2.204-22 (Pg. 257). Revocation for Failure to Make Court-Ordered Payment.  In determining whether revocation (emphasis added) is appropriate for failure to make a court-ordered financial payment, the Commission shall consider the releasee's employment status, earning ability, financial resources, and any other special circumstances that may have a bearing on the matter.

According to Chrisiansen's records, in addition to refusing to sign the Payment Schedule, Rizzolo failed to inform the United States Parole Commission of $990,000.00 he received from the sale of the Philadelphia Crazy Horse Too.
 

However, Rizzolo did report several personal loans and gifts he gave to ex-con Vinny Faraci, and his delinquent son Dominic, at a time when he was claiming poverty.

After receiving the $990,000.00, and loaning Faraci and others cash, Rizzolo filed this amazing statement with the court:

But the Rizzolos still have a fortune stashed in off shore banks! Rick and Lisa Rizzolo perpetuated a "sham" divorce three weeks prior to Rick beginning his plea negotiations. Immediately following the divorce, they mortgaged their three homes, set up phony trusts in Lisa's name, and hid their money in a Cook Islands bank out of reach of Kirk Henry and the IRS.

Normal people don't stash their money in secret off shore banks unless they did something wrong to obtain it, and fear it will be taken away.

Late last year, a federal judge in Minnesota established new and long-overdue Case Law that Judge Pro can now possibly use to force the Rizzolos to return their cash to the United States.

The Honorable Michael J. Davis. Chief U.S. District Judge, District of Minnesota on 12/08/09 ordered litigants in his court to “repatriate” their ill-gotten funds stashed in off shore banks. When the Defendant refused, the judge put him in prison until he agrees to the Order.

Based on this Case Law, Judge Pro may do the same in the Rizzolo case so that Kirk Henry, the IRS, and others will finally be paid.

In contrast to the Minnesota case, federal judges in Nevada have so far turned their backs when the Rizzolos withdrew money from their off shore accounts to pay legal fees, or fund their lavish lifestyles.

Not only did Rick Rizzolo not comply with the court's order to pay his debts, his wife Lisa falsified her income tax returns by refusing to report the off shore accounts.

And, according to sources,  it's very possible that Rick Rizzolo is stashing cash in casino cages up and down the Strip. Subpoenas should be issued to casino hosts at the MGM, Palms, Hilton, and Hard Rock immediately!

In all fairness, I should give the Rizzolos the next-to-the-last word in this extra long column. Here in the words of their attorneys is their entire argument as to why they should be allowed to keep their hidden bounty.  In summary, "The Government is to blame!"

(Editor's note: Please refer to last week's edition of INSIDE VEGAS to learn what happened to those documents. They were secretly shredded!)

Rick and Lisa Rizzolo consistently contend that the government screwed up all the sales including one for $48 million dollars! They also argue that Lisa's hidden stash is hers legitimately, and can't be touched. They also contend that their bills can only be paid from the sale proceeds of the Crazy Horse Too, and they are not severally responsible for the debts. They neglect to mention that every purported sale was on paper only,  or to straw men who planned to continue Rizzolo's criminal enterprises with him lingering in the shadows as a silent partner.

To show how consistent they've been in blaming the government for the inability to sell the Crazy Horse, here's their same argument from June 2008:

In order to avoid liability, the City of Las Vegas had no other choice than to revoke the liquor license after the business pleaded guilty to Racketeering; "constituted a public or private nuisance;" "was conducted in an unlawful, illegal, or impermissible manner;" and after learning that "35 to 40 beatings had occurred at the Crazy Horse Too in three years," all according to City Attorney Brad Jerbic.

Also, the United States of America has no business operating a topless bar and considered Rizzolo's suggestion ridiculous.  And the "quick $1,000,000.00" came from Rizzolo's insurance policy that had to be paid nonetheless.

There it is in a nut shell.  Including the links I provide, you now have the complete nine year long story of Kirk Henry, Rick and Lisa Rizzolo, and the infamous Crazy Horse Too. I hope it serves as a guide book to help you navigate through the upcoming trials.

My personal opinions aside, everything I presented in this column is documented and has been proven factually accurate for the past ten years since I began writing about Rick Rizzolo, the Vegas mob, and the Crazy Horse Too. During that time, all SLAPP suits and Gag Order Motions brought against me by Rizzolo have proven to be frivolous and were dismissed without my having to defend myself.

I haven't yet skipped a beat!

Now it will soon be up to a jury to determine whether Kirk Henry gets paid, and if Rick and Lisa get to remain in their current big houses, or be transferred to bigger houses in California for refusing to pay Rick's agreed upon debts to Henry, the IRS, City of Las Vegas, and society. Remember, Nevada is a community property state and Lisa was married to Rick and enjoying his loot during his years of criminal activity.

Our nation's system of justice will be tested by the outcome of this well studied case. Hopefully, after nine long years, justice will prevail, and this sordid story will finally come to a righteous end.

              Abodes BEFORE this month's trials                             Abodes AFTER this month's trials
.
  Rick Rizzolo's abode, 1760 Amarone Way, Henderson, NV                 Los Angeles Metropolitan Detention Center

.
    Lisa Rizzolo's abode, 8632 Canyon View Dr. Las Vegas         Federal Correctional Institution for women, Dublin, Calif.

This week's INSIDE VEGAS is dedicated to the memory of Buffalo Jim Barrier.

Steve Miller and Buffalo Jim Barrier, July 1, 2007, the day the Crazy Horse Too was shuttered

Click on Front Page to read "Larger than life" by Joshua Longobardy, Las Vegas Weekly Cover Story, 05/07/08

LISTEN TO "THE GHOST OF BUFFALO JIM"