Rizzolo
forced to reveal secret financial transactions
Judge orders him to start
paying Kirk Henry
"Mr. Rizzolo shall provide
to the probation officer the financial
information requested and
shall commence paying the
restitution obligations
at a rate to be approved
by the Court." -
U.S. Judge Philip Pro, 04/26/2010
INSIDE VEGAS by Steve Miller
AmericanMafia.com
May 3, 2010
LAS VEGAS - If there was ever a good reason
to seize someone's passport, this is it!
Racketeer Rick Rizzolo's world is crashing
in around him, and as each day passes until his September trial, he becomes
a bigger flight risk.
With last week's Federal Court Order to
require the former Vegas Crazy
Horse Too topless bar owner to start paying payments on the $9 million
Rizzolo still owes beating
victim Kirk Henry, few would be surprised if Rizzolo decided to expatriate
to a nation that does not have an extradition treaty with the United States.
He certainly can afford to do so!
After ignoring three Federal Court Orders
to produce information regarding his current financial condition, Rizzolo
on April 26 coughed up an eight
page partial listing of transactions he completed since stashing his
fortune in the Cook Islands out of the reach of Kirk Henry and the IRS..
The document reveals that Rizzolo has completed
undisclosed transactions totaling at least $3,278,265,50 between
2006 and 2008.
But even with this information known, Rizzolo
continues to plead poverty, but is often seen gambling in Strip casinos
where he was once known as a whale (million dollar player).
On February 5, 2010, Rizzolo even informed
the court; "I've got a watch and a few items of jewelry I may have
to sell to a pawn shop for living expenses." (More on this later.)
But few knew then how he was wheeling and
dealing in millions of dollars cash outside the eyes and ears of United
States Judge Philip Pro, or his parole officer Eric Christiansen.
In the Sunday, May 2, 2010 Las Vegas
Review-Journal, veteran columnist John L. Smith wrote:
"It's
not because he's short of funds. He's flush with big green. Yet, like crime,
Rizzolo doesn't pay. But that could be changing."
"He was back in U.S. District Court
last week to deny the undeniable: Rizzolo owes Kirk and Amy Henry millions.
The arguments of Rizzolo's attorneys, Kenneth Frizzell and Mark Hafer,
fell to a murmur before U.S. District Judge Philip Pro, who unequivocally
ordered Rizzolo to turn over financial documents and set a payment schedule
to the Henrys for a sum that, with interest, now exceeds $12 million. In
September 2001, Kirk Henry nearly had his head wrenched from his neck by
Crazy Horse Too shift manager Bobby D'Apice following a dispute over an
$88 bar tab."
Smith continues: "Now they'll have no
choice. Henry attorneys Donald Campbell and Stan Hunterton have submitted
documents that appear to show Rizzolo's undeniable parole violations."
"He also is prohibited from 'incurring
new credit charges or negotiating or consummating any financial contracts
without the approval of the probation officer.' Decide for yourself whether
he has done that."
Smith goes on: "On April 3, 2008, evidence
shows he received $990,000 from the sale of a Philadelphia topless club.
The money was transferred into the Lion Limited Partnership and then wired
to RLR Trust, his confidential offshore account in the Cook Islands. Rizzolo
then ordered $600,000 to be transferred into ex-wife Lisa Rizzolo's Cook
Islands trust account. His father, Bart Rizzolo, was sent $200,000, and
$100,000 was transferred to the law offices of Patti Sgro & Lewis."
"Then there's the disclosure in January
that Rizzolo sold his personal jewelry collection to 'unnamed family members'
for $500,000. How convenient."
Smith concludes: "As the Cook Islands
trust accounts were supposedly secret, none of this was disclosed to Rizzolo's
parole officer."
For years Rizzolo claimed that the money
he was court ordered to pay his creditors must come exclusively from the
sale of his defunct converted warehouse/topless bar. However, Judge Pro
put an end to that false claim on April 26, when he DENIED Rizzolo's
Request for Final Order of Satisfaction:
Full docket text for document 325:
MINUTES OF PROCEEDINGS - Motion Hearing as to
Power Company, Inc., Frederick John Rizzolo held on 4/26/2010
before Judge Philip M. Pro. Crtrm Administrator: Donna Andrews;
AUSA: Eric Johnson; Also Present: Donald Campbell, Philip R. Erwin for
Kirk and Amy Henry; James Erbeck for City of Las Vegas; Def Counsel: Kenneth
G. Frizzell, III, Mark C. Hafer; USPO: Eric Christiansen (Present Telephonically);
Court Reporter/FTR #: Summer Rivera; Time of Hearing: 2:00 p.m. - 3:10
p.m.; Courtroom: 7C; RE: Petition to Modify Conditions
of Supervised Release [278]; Defendants Power Company and Frederick John
Rizzolo's Request for Final Order of Satisfaction [302]; Defendants
Power Company and Frederick John Rizzolo's Motion to Strike Documents 286,
298, 300 and 306 by Kirk and Amy Henry for Lack of Standing [312]. The
Court hears the arguments of Mr. Johnson, Mr. Campbell, Mr. Frizzell and
Mr. Hafer. IT IS ORDERED the Petition to Modify Conditions
of Supervised Release [278] is GRANTED.
Mr.
Rizzolo shall provide to the probation officer the financial information
requested and shall commence paying the restitution
obligations at a rate to be approved by the Court. IT
IS FURTHER ORDERED Defendants Power Company and Frederick John Rizzolo's
Request for Final Order of Satisfaction [302] and Motion to Strike
Documents 286, 298, 300 and 306 by Kirk and Amy Henry for Lack of Standing
[312] are DENIED. Defendant is continued on
present terms of release. (Copies have
been distributed pursuant to the NEF - DMA) |
In the above COURT ORDER, Rizzolo failed
to get the court to agree that all of his financial obligations were met
when the Crazy Horse Too was seized by the government. The court rejected
his claims that the bar's worth at the time of seizure far exceeded what
he owed; that the government was responsible for diminishing the bar's
value; and that the government (tax payers) should pay the balance
of Rizzolo's obligations in the event the bar sold for less than he owed.
Here is what Rizzolo owes in the order
given by the court.
All of the United States Marshals Service's costs, expenses, and private
counsel's attorney fees for the real property transaction related to the
care and the sale of the Property and the Trademark and Trade name Crazy
Horse Too, including but not limited to the maintenance, the protection,
the repair, the service of process, the publication, the utilities, the
insurance, the CB Richard Ellis real estate commission, the escrow, the
closing costs, the real estate transfer tax, private counsel's attorney
fees for the real property transaction, etc.;
The Clark County Taxes owed on the Property with penalties and interest
The City of Las Vegas sewer lien
The Security Pacific Bank ($5 million dollar) loan with attorneys'
fees, penalties, and interest
The restitution of US $9,000,000.00 plus interest to Kirk and Amy Henry
The restitution of US $1,734,000.00 plus accruals to the IRS
The assessment of US $500.00 plus interest
The fines of US $750,000.00 plus interest
The forfeiture of US $4,250,000.00 plus interest
The City of Las Vegas judgment lien of US $2,192,000.00 plus interest
The IRS tax lien against Rizzolo for the 2006 individual income taxes
of US $1,032,535.26 plus accruals |
In the event the Crazy Horse Too is sold
to Chicago trucking company owner Chris Condotti for $10.5 million, and
if LV Mayor Oscar Goodman keeps his promise
to not grant zoning or a liquor license unless he first collects the City's
judgment lien of $2,192,000 plus interest, that leaves a scant $8.3 million
to pay the rest of Rick and Lisa Rizzolo's first four bills, and nothing
for Kirk Henry who is number five on the court's list of creditors.
In other words, the Rizzolos will be upside
down for at least $15 million in personal debts including years of interest
and penalties!
Sometime in September 2010, Judge Pro will
preside over a jury trial to determine if Rick and Lisa Rizzolo are in
violation of the Uniform
Fraudulent Transfer Act (UFTA) by stashing their fortune in the Cook
Islands right in the middle of two court cases.
If the jury finds that the couple participated
in a sham
divorce right in the middle of Kirk Henry's personal injury lawsuit,
and three weeks before Rick began his plea negotiations, the court can
order Rick to "repatriate"
his loot, or go to prison until he does.
With all this bad news, another problem
is lurking. Seeing the recent writing on the wall, will the Rizzolo's opt
to leave the country in order to keep their ill-gotten riches out of the
hands of Henry and the IRS?
I sure hope Judge Pro takes this into consideration
immediately and seizes Rick's passport. But if the judge hesitates,
I've put together a list of countries Rick can take his cash and escape
to that have no U.S. Extradition Treaty:
Afghanistan, Algeria, Andorra, Angola,
Armenia, Bahrain, Bangladesh, Bosnia and Herzegovina (emphasis added),
Brunei, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, the Central
African Republic, Chad, China (People's Republic of China), the Union of
the Comoros, Democratic Republic of the Congo, Côte d'Ivoire, Djibouti,
Equatorial Guinea, Ethiopia, Gabon, Guinea, Guinea-Bissau, Indonesia, Jordan,
Kosovo, Kuwait, Laos, Lebanon, Libya, Madagascar, the Maldives, Mali, the
Marshall Islands, Mauritania, the Federated States of Micronesia, Moldova,
Mongolia, Montenegro, Mozambique, Myanmar, Namibia, Nepal, Niger, Oman,
Qatar, the Russian Federation, Rwanda, Samoa, São Tomé &
Príncipe, Saudi Arabia, Senegal, Serbia, Somalia, Sudan, Syria,
Togo, Tunisia, Uganda, United Arab Emirates, Vanuatu, Vietnam, Yemen, and
Zimba.
If Rick does want to escape his financial
obligations, I suggest that he and Lisa repatriate to Sarajevo, the capital
and largest city of Bosnia and Herzegovina, located just across the Adriatic
Sea from Italy.
One way first class airfare from Las Vegas
to Sarajevo is $12,064 avg/person ($24,128 total). Lufthansa 9183
/ 9269 / 3500 Departs Las Vegas (LAS) at 11:18 am, Connects in Chicago
(O'Hare Intl.), and Munich (Franz Josef Strauss Intl.), Arrives Sarajevo
(SJJ) 12:25 pm + 1 day. Duration 16hr 7min.
Quaint sidewalk cafes line the streets in
downtown Sarajevo
I recommend that Rick and Lisa begin their
new life in Sarajevo at the luxurious Hotel
Hollywood.
"The
Hollywood is situated in the center of Ilidza, a green oasis of Sarajevo,
near the main road and very close to the Sarajevo International Airport
and the spring of river Bosna, a unique jewel of genuine nature."
"Guests
can choose between bathrooms with sauna or Jacuzzi shower, hair dryers
and other elements of the highest standard. For your safety we have controlled
entrance, video surveillance and physical security. To make your stay in
our hotel unforgettable, we organize excursions, scientific, experts and
business trips and visits to cultural and entertainment events, official
dinner parties, cocktails, receptions, etc., musical and entertainment
events."
"Hollywood
hotel has 3 restaurants with 150, 350 and 850 seats, National restaurant
with 120 seats, tavern with 80 seats, coffee and cake house and internet
cafe."
After flying for 16 hours, and checking
into their fabulous Hotel Hollywood penthouse, I'm sure the Rizzolos will
be famished. For their first night of expatriation, I suggest one of the
following nearby Italian restaurants that are guaranteed to put Piero's
in Vegas to shame:
"Fellini
Restaurante, located in the centre of Sarajevo, is a restaurant with exceptional
history and traditions, serving authentic dishes and fresh Italian cuisine.
Opened under the name of AMERICANC in 1934, this restaurant has survived
a full 70 years of service and remains one of the most popular local restaurants
in the city. In 2004 the restaurant went under an extensive renovation
and was decorated in the spirited style of the Italian Renaissance and
opened under the new name of Fellini. Original decor, a very high level
of service, a wide range of Italian cuisine and a quality wine list made
sure that the restaurant Fellini became a worthy member of the prestigious
club CD."
"Vinoteka
is well known for being one of the most exclusive restaurants in the City
of Sarajevo. It is widely acclaimed as the finest Italian restaurant in
town, and it is hard to disagree. The restaurant has a great ambiance to
it, comfortable and relaxing with top level service. As the name suggests,
the restaurant has an excellent choice of wines which definitely deserves
a special mention; in fact there is a specific wine bar downstairs which
really should not be missed. For many years Vinoteka has been the official
restaurant sponsor of the Sarajevo Film Festival and is up there with the
best restaurants in Sarajevo."
And here's my personal favorite Sarajevo
restaurante; "Slick" (the name befits Rick):
"If
you want to enjoy the culinary specialties one of the best chefs in Bosnia
and Herzegovina, you should definitely visit restaurant Slick. The restaurant
offers the best dishes of Mediterranean cuisine with a focus on famous
Italian dishes such as various types of pasta and fish specialties. Restaurant
is located in the very city center - Titova street, and is convenient for
all types of larger or smaller celebrations and gatherings. The warm, intimate
atmosphere, beautiful interior on two floors and live music in the evening
hours are something that will fascinate you and something that you should
not miss."
Raiffeisen
Bank in Sarajevo offers Western Union money transfer service from anywhere
on the planet including the Capital
Security Bank Limited of the Cook Islands.
All Lisa needs to do before she leaves
Vegas is place a quick call to her "Protector,"
John Dawson, Esq. (brother of United States Federal Judge Kent Dawson who
presided over the felony trials of 15 former Crazy Horse Too employees
without disclosing that his brother was the Rizzolo's "Protector"), and
instruct him to wire transfer the Cook Islands cash to Sarajevo. The money
will be waiting in Raiffeisen Bank for Rick and Lisa to enjoy upon their
arrival. And they need not worry because Kirk Henry and the IRS can't seize
it there either, nor can the Nevada
Board of Parole Commissioners tell Rick he'll go back to prison if
he refuses to pay his court ordered debts. With this scheme, they can have
their cake and eat it too just like Joe
Conforte did in 1991.
With their cash at hand, Rick and Lisa
can go house hunting. May I recommend Real
Estate Agency "Nemos" Ltd. Sarajevo to find the perfect estate to fit
their retirement needs -- that's if Judge Pro does not take away Rick's
passport before this pipe dream can come true!
Enough of the foolishness. The sober truth
is if Kirk Henry prevails at the UFTA trial in September, and the judge
procrastinates about Rick's passport long enough to let the Rizzolos leave
the country with their loot, the United States District Court, District
of Nevada will be responsible for allowing itself to be manipulated by
the mob for over nine years, and will deserve the title "Laughing Stock."
As a loyal American, I pray that never
occurs.
Copyright © Steve Miller
READERS RESPOND:
Good break-down. Problem
is the FEDS (1) could continue to look the other way for now (2.) FEDS
did not take his passport so he can flee (3) Funds are still hidden in
Cook account? He will flee USA before he pays this to Henry's (may
start to pay but in the end No way because this money belongs to the boys...you
know that?...so if he does not flee and they won't let him work in the
business where he can make the millions...he has to return these funds
to the boys first. You know he cannot even do that now!...so maybe they
will find him out in the desert someday. Or Guess we can expect an Appeals
Court case soon. This will delay again current conditions. - Larry
-------------------------------------------------------------------------------
I'm guessing he will be off
probation and then it will be too late to violate him. I just don't
see any justice coming for Kirk Henry and that is a shame. It seems
Rizzolo has successfully gamed the system, albeit with a lot of political
help. What a crooked place we call home. - Mark in Vegas
-------------------------------------------------------------------------------
So does this then mean that
two million dollars is the going rate for the City of Las Vegas to waive
any zoning for a girlie joint? Can you do one between a school and a church
for $4 million? Is there not some lesson in good government involved in
all this? - Ray
-------------------------------------------------------------------------------
Steve, I have always
wondered who Rizzolo's protector is? He killed a cash cow for a couple
of Families and you would think with the grief he has caused them, he would
be whacked. Also, did you know Faraci was back in New York? It was
in Gangland.com this week. - R,I.
http://www.americanmafia2.com/crimeboard/viewtopic.php?f=3&t=1355
-------------------------------------------------------------------------------
I'm missing something here.
If the judge thinks the guy who is to stand trial might run -- they put
them in jail or make him put up bail, etc. If Rizzolo might leave to avoid
paying --- then SOMEBODY (like Henry) should request the judge to do the
same sort of thing. Joe Conforte was going back to jail for crimes/including
tax evasion -- and he is safe in Brazil now (with all his money)----- Henry
will never see one dime before he dies and his kids have grown up!
Meanwhile Rizzolo is running around LV free as a bird spending money. Something
is wrong with this picture. - Sincerely, Audrey in Florida
-------------------------------------------------------------------------------
You missed one...Most go
to the Philippines and hide. Hard to get them back. Over 7,000 islands
and if you have as much money as the RIZZ does, no one will find him.
This is the case with many criminals who flee to Asia. They will not run
after RIZZ if he goes. They did not take his passport so he can flee easy
now. I doubt he will follow his conditions and pay another dime to the
Henry's. I am sure he knows many Asian stripper ladies who would love to
take him back home with them. Good meal ticket. He also sure would live
like a king in Viet Nam these days with the money he has available. Many
strippers come from there to dance in our clubs. - Billy
-------------------------------------------------------------------------------
You mean they haven't confiscated
his passport? I'm not surprised. - Sam in Reno
-------------------------------------------------------------------------------
Vanuatu is supposed to be
pretty nice too. I knew of an old stock swindler that hid his money
there and eventually ran away there by most accounts. Montengro is also
supposed to be nice and "white" friendly. I knew a guy working
a casino/ marina deal there a few years back. I say send him to afghanistan
and leave him there. One noticeably absent country from the list is Cuba
and I guess that is because the US has diplomatic relations with all the
countries on the list, just no extradition treaty. So I guess Cuba
is an option too, at least for a few more years. - Rusty
-------------------------------------------------------------------------------
Steve - How long has this
turd been out of prison ? Seems to me that you give a guy a couple
months to get a job and then start paying .the victims, that is, not judges
and lawyers... Sure hope they haven't moved all their cash out of off shores
by now. Too bad govt. cant get eye in the sky tapes from the casinos to
get an idea how much cash he DOES have..- Steve in KC
-------------------------------------------------------------------------------
Steve, Google up a guy named
Denny Hecker in Minneapolis and see what the bankruptcy judge did to him
for hiding assets. Numerous stories at www.startribune.com
- Jack in Toronto
-------------------------------------------------------------------------------
This is good news but the
bad part would be the payments if approved. Kirk and his family need money
not payments and a f- - -ing promissory note. Steve, go get um. - Mike
-------------------------------------------------------------------------------
Its finally all falling into
place. Rizzolo is going down little by little. Thanks Steve for the news.
I'm so happy this is coming along. - Vince
