Court orders Kimtran Rizzolo's assets seized
Kimtran and Lisa Rizzolo
file appeals with Ninth Circuit Court
Dominic Rizzolo arrested
for assault with a deadly weapon
INSIDE VEGAS by Steve Miller
May 28, 2012
LAS VEGAS - Two weeks before his release
from a second term in federal prison, convicted racketeer Rick
Rizzolo's troubles are just beginning.
Back on April 3, the U.S. Ninth Circuit
Court of Appeals unceremoniously disposed of Rizzolo's appeal of
an additional 9 month prison sentence and 24 month extension of parole
for violating his conditions of supervised release that mandated he honor
his plea agreement to pay all court ordered personal obligations including
$9 million plus interest in restitution to beating
victim Kirk Henry, and millions of dollars in back taxes.
Rick Rizzolo contended that Henry's attorneys
should not have been allowed to speak at his sentencing and their characterization
of him as a "gangster” and a “professional criminal” hell-bent on “cheating
the squares,” prejudiced United States Federal Judge Philip Pro's decision.
He also contended that his infamous Crazy Horse Too strip club was worth
$45 million dollars, and the money to pay his debts would have come from
the club's sale had the City of Las Vegas not screwed up the deal with
a local restaurant owner.
The appeals court justices did not buy
Rizzolo's arguments, and quickly dismissed his appeal.
Now, Rick's stepmother and ex-wife are
going back to the same Ninth Circuit Court with equally questionable appeals.
On April 19, Senior United States Judge
Philip M. Pro ruled that both women are illegally hiding Rick's assets
from his creditors, and that U.S. Marshals must within 60 days seize over
a million dollars from Kimtran Rizzolo, widow of Rick's father Bart Rizzolo.
Judge Pro also opened the door for Henry to sue Lisa Rizzolo for the fraudulent
transfer of funds to the Cook Islands after a "sham"
divorce, assets she did not declare on her 2005 and 2006 income tax reports.
Judge Pro issued a six
page ORDER stating:"Rick
Rizzolo’s share of the community property that was fraudulently transferred
to Lisa Rizzolo is also subject to the 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."
Later that same day, Judge Pro issued another
this one stating: "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."
Thirty days later on May 21, the funds
from Kimtran had not been transferred, and attorneys for both women filed
costly last minute appeals to the Ninth Circuit Court.
The next day, May 22, the Rizzolo's 30
year old son Dominic (mug shot) was arrested in Florida for trying to kill
a man with a hammer. It was Dominic's
second arrest for Aggravated Assault with a Deadly Weapon.
Rizzolo's 446 word APPEAL
Rizzolo's 32 page APPEAL
coverage of Dominic Rizzolo's arrest
response to Kimtran's refusal to comply with a court order, on May 22,
Judge Pro issued a two page WRIT
OF EXECUTION commanding the United States Marshals seize within sixty
days her personal property and assets including her million dollar home
(photo by Mike Christ) if $1,052,996.03 in liquid funds were not made available.
The money was part of a 2006 plea agreement in which Rick Rizzolo agreed
to pay Henry $10 million restitution in exchange for a shortened prison
sentence. ($1 million was initially paid to the Henrys from Rizzolo's Farmers
Insurance umbrella policy, and $897,007.29 was later seized from the secret
sale of the Philadelphia Crazy Horse Too.)
After signing the plea agreement, Rick
spent an initial 12 months in federal prison when he would otherwise have
been given five years. He was released on April 3, 2008, but reneged on
his side of the plea agreement, and in 2011 was sent back to prison for
nine additional months with a two year extension of his parole based on
the Rizzolos concealing $3 million dollars he was to receive from the sale
of his interest the Philadelphia Crazy Horse Too strip club, money intended
to go to Henry.
As of May 28, U.S. Marshals have
not taken possession of Kimtran's house indicating that adequate funds
may have been located in her bank accounts to pay Henry the $1,052,996.03
she's been concealing for her stepson and his ex-wife.
The main argument in Kimtran's Ninth Circuit
Court appeal is that her late husband was owed an undisclosed amount of
money from his son Rick, and that she should be credited for whatever that
amount was, and for criminal defense attorney's fees her late husband paid
on Rick's behalf.
If the court rules in Kimtran's favor,
and they're not expected to, she would be returned the majority of the
$1,052,996.03 that's about to be seized. The Ninth Circuit Court is expected
to rule sometime this fall.
In Lisa's Ninth Circuit appeal, she mainly
argues that Henry's Nevada Uniform Fraudulent Transfers Act case belongs
before the Nevada Supreme Court, not in the United States Federal Court.
That the City of Las Vegas screwed up the $45 million dollar sale of the
Crazy Horse Too to a twice
bankrupt local restaurateur with no money. That Henry could have already
been paid had the city not ruined the sale by revoking the club's liquor
license. That she was not aware her husband was involved in criminal activity
during their entire marriage. And last but not least, that her ex-husband
did not personally break Kirk Henry's neck, so Rick and Lisa should not
be held personally responsible for Henry's injuries even though they were
married at the time when one of their managers tried to kill him over his
refusal to pay a padded bar tab.
Lisa Rizzolo respectfully requests that this Court certify a question to
the Nevada Supreme Court of whether a creditor of one spouse can collaterally
attack the award of community property in a Nevada divorce decree as a
fraudulent transfer under NUFTA in light of the countervailing statutory
authority contained in NRS 125.185. Defendant Lisa Rizzolo believes that
if this matter were to proceed to trial without the guidance of the Nevada
Supreme Court, the April 19 Order would be improperly applied as the same.
Accordingly, there is a dire necessity that the April 19 Order be corrected."
Lisa's most heart rendering plea is: "Defendant
Lisa Rizzolo will be irreparably injured if the April 19 Order is not corrected.
Specifically, the April 19 Order allows the Henrys, if they prevail at
trial, to satisfy Rick Rizzolo’s $9 Million separate contractual debt from
community property awarded to Defendant Lisa Rizzolo. Undoubtedly, Plaintiffs
will seek to attach and/or garnish Defendant Lisa Rizzolo’s assets, including
her real property, to satisfy the same,"
i.e., Lisa could lose her multi-million dollar 6,000 square foot Canyon
Gate Country Club estate, the site of numerous political campaign fund
raisers for local and state judges, district attorneys, and other high
level elected officials.
Lisa makes her remand-back-to-state-court
argument seven times in her 32 page appeal for a very understandable reason.
The Rizzolo's have a close family friend on the Nevada Supreme Court --
its former Chief Justice Nancy M. Saitta. Saitta was a frequent guest in
the Rizzolo mansion and was observed during the couple's lavish political
fundraisers being hugged and kissed by Rick. As an influential member of
our state's highest court, Justice Saitta could stall Kirk Henry's case
for years or influence her court's ruling to favor those who helped her
Saitta (left) was the same judge who once had five simultaneous "randomly
selected" cases on her court docket that included Rick Rizzolo as a litigant.
One was the 1995 beating
death of long haul trucker Scott David Fau wherein she advised the
jury to not consider blunt force trauma as the cause of death. Based on
her admonition, Fau's widow and three daughters lost their case, and subsequent
beatings and robberies took place at the Rizzolo's strip club including
that of Kirk Henry.
It was suspected
that at her request, a court clerk was setting aside Rizzolo's cases and
scheduling them when Saitta's name came up in rotation on the court's computer.
Otherwise such a coincidence is not technically possible. (see: http://www.americanmafia.com/Inside_Vegas/1-9-12_Inside_Vegas.html
Justice Saitta has
also been the subject of a very revealing national news article published
on June 8, 2006 in the Los Angeles Times entitled: "In
Las Vegas, They're Playing With a Stacked Judicial Deck - JUICE VS. JUSTICE."
"Some judges routinely rule in cases involving friends, former clients
and business associates -- and in favor of lawyers who fill their campaign
coffers," referring to Saitta and several other local judges.
If the Ninth Circuit
remands Kirk Henry's federal NUFTA case back to the state high court, It's
clear that Justice Saitta could do another favor for her friends. Based
on the Nevada Supreme Court's busy schedule, it often takes up to five
years for a case to be scheduled. If Lisa Rizzolo wins her appeal, it could
take until 2017 for Kirk Henry's case to reviewed!
That said, I believe
both new appeals are merely make-work projects for greedy local lawyers
to drain money rightfully owed to Henry, the IRS and other creditors, and
as was the case with Rick's
2012 appeal, the latest appeals will also result in humiliating defeat.