Crazy Horse Too Goes On Auction Block
"With the notorious Crazy
Horse Too topless cabaret up for government
auction on July 1, speculation
is already building about whether some
of the club's former associates
will be making proxy bids."- LV Review-Journal
INSIDE VEGAS by Steve Miller
June 13, 2011
LAS VEGAS - On Friday, July 1, at 1 PM,
a fire sale will take place. To be sold to the highest bidder are the picked
over remains of what was once Sin City's most profitable topless bar, the
Crazy Horse Too. Ironically, July 1 is exactly four years to the day that
the Crazy Horse Too was shut
down after years of robbing
and beating its patrons.
At the sale to be held on the steps of
the Las Vegas Legal News located at 930 South 4th Street in downtown Las
Vegas, it's expected that Federal Agents, LV Police Organized Crime Bureau
officers, news reporters, and photographers will outnumber bidders by at
least two to one.
The 2.6 acres of Industrial Road land is
expected to fetch no more than $1 million based on structural damage caused
by years of water and sewer leaks that undermined the foundation of the
converted warehouse, the depressed local commercial real estate market,
and the Nevada
Department of Transportation's plan to take by eminent domain a 25
foot deep slice of the property's frontage for a road widening sometime
within the next few years.
The sale is based on a very questionable
$5 million dollar loan issued in 2005 by the now-defunct Security Pacific
Bank of California that was secured by the Crazy Horse Too property and
never repaid. At the time, former owner Rick
Rizzolo was within a year of being indicted for racketeering, and his
property was within two years of being seized by the U.S. Department of
Justice. However, though the bank was clearly forewarned of the tenuous
condition of their collateral, they proceeded to fund the loan.
Immediately upon receipt of the $5 million,
Rick Rizzolo's ex-wife with the help of attorney John
Dawson, brother of Federal Court Judge Kent Dawson, hid the money in
the Cook Islands out of reach of the bank, FDIC, IRS, and un-paid
beating victim Kirk Henry who was/is the Plaintiff in a highly publicized
personal injury lawsuit against Rizzolo and his corporation "The Power
Company" at the time Security Pacific Bank funded the loan.
Because I provided ample information to
the bank about Rizzolo's pending indictment and the club's pending seizure,
and the fact that they
chose to ignore it and still gave Rick and Lisa Rizzolo the $5 million,
it's now speculated that one or more bank officers were bribed.
to see the exact August 2005 "email string" Security Pacific Bank officials
ignored. If the page does not appear within ten seconds, click "Impatient?")
Three years after Rick and Lisa Rizzolo
stole the $5 million, Security Pacific Bank went belly up, and the FDIC
(taxpayers) were forced to bail out the bank's depositors.
Following the bank's demise, the FBI clearly
described the fraud Rick and Lisa Rizzolo committed against Security Pacific
Bank in this DECLARATION
authored by Special Agent Anthony J. Mace:
"On October 26, 2005, RIZZOLO signed a
$5,000,000.00 in United States currency note which was secured against
the underlying real property on November 3, 2005. The FBI has not been
able to track or locate the $5,000,000.00 in United States currency." "Upon
due diligence, I have tried to locate all property of RIZZOLO. I have not
been able to find any other personal or real property of significant value
to satisfy debts owed to the United States and victim."
was later discovered by attorneys for Kirk Henry that the Rizzolo's, through
John Dawson (left), hid the bank's money in the Cook Islands. (So far,
Dawson has not been charged with a crime though his personal attorney attends
all hearings in Federal Court that involve the Rizzolos.)
Keep in mind that a duped bank, and later
the guy who bought their phony collateral should have never been assigned
a payment position in advance of Kirk Henry, but it unexplainably occurred.
Based on what is expected to be garnered at the auction, and because Henry
is in fifth position to get paid, no one expects that any of the fire sale
proceeds will go to help Henry pay his life long medical expenses.
Now, after six years and millions of dollars
lost by U.S. taxpayers, an unknown person bought Security Pacific Bank's
bad paper including the Rizzolo's collateral for pennies on the dollar,
and on July 1, intends to auction the Crazy Horse Too off to the highest
bidder no matter whether or not that bidder has connections to Rick and
One of INSIDE VEGAS' most reliable confidential
sources put it this way:
"Steve: The actions of Security Pacific
Bank could have been Rizzolo's plan all along. He could buy the Crazy
Horse back through a strawbuyer with the bank's money. There are several
standing by with close ties to Rizzolo, et. al., including two men with
real estate holdings on the LV Strip. This way Rizzolo gets it back for
free. Up until this point everything Rizzolo has done, except for
sitting in the can for a few months, which is a small price to pay for
the pay back, has paid off in spades for him. He gets the money to
buy the place from the same people that foreclosed on it. Then pays back
the strawbuyer with his hidden 5 mil. How beautiful -- if the judge
goes along. You have to give Rick credit for this scam. Thinking
about it, someone at the bank really could have been in on the scam from
the get go. Perfect way to wash his money. He gets the money from
the bank with no intention of paying it back knowing that he was going
to lose his license to operate the CH2. Bank takes building. All
is good for Rizzolo. Now Rizzolo claims poverty and does not have
to pay all the rest that he owes. While he still has all of his money
that can't be touched thanks to a FEDERAL JUDGE'S brother who hid his assets.
Pretty damn smart of him. He beats everyone and spends a few months
in lock-up. His Chicago friends taught him well the art of the bust
AmericanMafia.com will be at the fire sale
on July 1.
It has been falsely reported that the adult
use zoning once grandfathered for Rick Rizzolo cannot be re-instituted
and the property can never return to being a topless bar because there
is another adult use located within 1,500 feet.
As a former Las Vegas City Councilman,
I will attest that it would be a simple task for a new Mayor to change
the present zoning ordinance to allow more than one adult use to exist
within 1,500 feet of another. She could simply convince her City Council
to vote to change the distance requirement to 1,000 foot separation, and
the new owners of the Crazy Horse Too can apply for a new liquor license
and resume business.
Tuesday, Las Vegas elected a new Mayor. Her name is Carolyn Goodman, wife
of outgoing mayor and Rick Rizzolo's former criminal defense lawyer and
agent Oscar Goodman (AP Photo by Isaac Brekken).
However, former LV Mayor Oscar Goodman
still has friends in City Hall. There are those who think the ex-Mayor
might try to influence his wife into introducing an ordinance repealing
CLV 19.16.030 (3) to re-zone the Crazy Horse Too property back to adult
use as a favor to Rizzolo or one of his associates with ties to Oscar
Goodman's law firm. If so, Oscar Goodman would have nothing to lose
since he has retired from politics, and his wife is enjoying the traditional
political honeymoon temporarily experienced by those who win elections
by a landslide.
A new Mayor in the beginning of her first
term is usually given at least one pass to do something foolish, and Carolyn
may want to do a favor for several of her husband's most prolific
former clients. Rick Rizzolo is prohibited by his plea agreement from
being associated with another adult business for the rest of his life,
but Rick deals in cash, and Vegas topless bars are known for being cash
cows, so no one would know if he slipped back into the business.
In 2006, after writing about Oscar Goodman
using his office to do
Rizzolo favors such as sponsoring an ordinance to let the Crazy Horse
expand, and another allowing it to employ
teenage strippers, I personally filed an ethics
complaint that temporarily stopped Oscar Goodman in his tracks.
response to the complaint, Goodman (giving a menacing glare to AmericanMafia.com
photographer Mike Christ) defiantly told the Las Vegas Review-Journal;
Steve Miller he can suck my big toe," but he also was forced to abstain
on all matters involving Rizzolo for the next two years.
During that time, the Crazy Horse Too was
closed down permanently by the non-conflicted members of the City Council.
Oscar and Carolyn Goodman are a
study in contrasts. Oscar's bad boy image was accurately portrayed
in the movie "Casino," while Carolyn's previous image was that of a devoted
educator and Chairwoman of the Board of Directors of the Meadows
School, a private school in Summerlin that charges tuition of $11,200
- $14,950 per year per student depending on grade level.
"The Meadows School strives to reinforce
traditional values and emphasize the cultivation of integrity, good manners,
and personal discipline." - Excerpt from the Objectives of the Meadows
Will Mayor Carolyn Goodman continue to
reinforce traditional values, cultivate integrity, good manners, and personal
Or will she re-zone and re-license a menace
to "provide jobs for hundreds of single mothers," "help revitalize the
area," or some other reason if one of Rizzolo's associates makes a proxy
winning bid on July 1?
In any case, Kirk Henry will not get a
dime as he is in fifth position behind the U.S. Marshals, Clark County,
City of Las Vegas, and the bank trustee.
The seller (trustee) gets to keep anything
under $5 million. Proceeds over that amount would need to be dispersed
to the creditors who are ahead of Henry, and it's not expected that anyone
will bid anywhere close to $5 million unless they secretly know the new
Mayor will give them zoning and a new liquor license to reopen as a strip
And why hasn't Kirk Henry, the IRS, City
of Las Vegas, or other creditors filed a Lien Lis Pendens on the property?
Here is the list of those who have made
claim to the Crazy Horse Too property in the order of priority given them
by U.S. Judge Philip Pro:
|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.;
County Taxes owed on the Property with penalties and interest
The City of
Las Vegas sewer lien
Pacific Bank ($5 million dollar) loan with attorneys' fees, penalties,
of US $9,000,000.00 plus interest to Kirk and Amy Henry
of US $1,734,000.00 plus accruals to the IRS
of US $500.00 plus interest
of US $750,000.00 plus interest
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
A Lien Lis Pendens is a written notice
that a lawsuit has been filed which clouds the title to real property or
some interest in that real property. It gives notice to the entity that
owns the real estate that there is a claim on the property, and informs
the general public, and anyone interested in buying or financing the property,
that there is this potential claim against it.
I wish our new Mayor the best, and I give
her the benefit of the doubt that she'll do the right thing. However, her
husband has proven time and again that his friendships
with former criminal defense clients can overshadow his loyalty to
constituents. That said, after Friday, July 1, when a new owner takes possession
of the Crazy Horse Too, if soon thereafter an application for new adult
use zoning appears on the City Council agenda, I will hate to be the one
who says "I told you so."