Ex Turns Over Millions To
Kirk Henry From Off Shore
Lisa Rizzolo dismissed as
Racketeer and his stepmother
standing alone while Appeals
Court decides destiny of
remaining $3 million
INSIDE VEGAS by Steve Miller
June 17, 2013
LAS VEGAS - After waiting over 12 years
for justice, beating victim Kirk Henry is finally receiving a portion of
his restitution from Rick
and Lisa Rizzolo.
The amount the Henrys received from Lisa
Rizzolo's off shore stash is sealed, but sources close to this case speculate
its in excess of $5 million.
million was court ordered to be paid after Kirk Henry's neck was broken
in 2001 by a Rizzolo employee when Henry (LV Review-Journal photo)
disputed a padded bar tab at their former Las Vegas Crazy Horse Too strip
club. Henry's beating was one
of many that occurred at the club during the years patrons complained
of being overcharged and roughed up if they refused to pay.
Henry is still legally entitled to receive
the additional $3 million in proceeds secretly transferred to Rick Rizzolo's
Rizzolo from the March 25, 2008 sale
of the Philadelphia Crazy Horse Too. However, though the funds have
been transferred out of Kimtran's annuities and into Henry's trust account,
the funds cannot be released until Kimtran's Ninth Circuit Court appeal
is dismissed which is expected to happen at any time.
For concealing the $3 million from his
parole officer, on September 15, 2011, Rick was ordered back
to federal prison to spend an additional year.
Then on October 10, 2012, based on her
squandering money owed the Henrys, Lisa Rizzolo was put on an allowance
like a spoiled child!
|Full docket text for document 655:
ORDER that  Motion for Injunctive
Relief Against the Dissipation or Transfer of Assets is GRANTED. FURTHER
ORDERED that Defendants Lisa Rizzolo, the LMR Trust, and the Lisa M. Rizzolo
Separate Property Trust are hereby enjoined from taking any action, either
directly or indirectly, from withdrawing, assigning, dissipating, encumbering,
or otherwise disposing of any of the funds in the identified Cook Islands
account. FURTHER ORDERED that Defendants may petition the Court for the
release of funds from the Cook Islands Account for Lisa Rizzolo's living
expenses and attorney's fees. Signed by Judge Philip M. Pro on 10/10/12.
(Copies have been distributed pursuant to the NEF -
Here's speculation as to why Lisa suddenly
ponied up the money from the Cook Islands. The Federal Court was nickel
and diming her to death as can be seen in the following monthly documents.
The Court had put a giant crimp in her luxurious lifestyle.
$16,983.58 requested. Only $7,793.68 approved!
Lisa is responsible for supporting two
adult children and paying for the upkeep of two lavish homes, one in Las
Vegas, the other in Newport Beach, California. $7,793,68 per month just
didn't cut it - she was going broke. So to put an end to being on an allowance,
and to prevent being a litigant in a then-scheduled Uniform Fraudulent
Transfers Act trial, I believe she accepted the alternative and paid part
of her husband's debt to the Henrys. The outcome of a very clever move
by veteran U.S.
Judge Philip Pro!
Rick Rizzolo agreed in 2006 to pay Henry
$10 million in restitution as part of a plea bargain to gain a shortened
prison sentence. But Rizzolo didn't reveal that he also hired a politically
connected asset protection lawyer to hide his assets so they couldn't be
The Cook Islands accounts were set up and
managed by attorney John
Dawson, brother of U.S. Federal Judge Kent Dawson who presided over
the felony trials of 15 Crazy Horse Too employees without disclosing that
his brother was Rick and Lisa Rizzolo's asset protection attorney. John
Dawson acts as the teller for the Rizzolo's off shore accounts, and would
have been an embarrassing key witness in Kirk Henry's Uniform Fraudulent
Transfers Act trial that has been postponed indefinitely based on Lisa's
agreement to settle.
On January 28, 2013, the Henrys reached
a CONFIDENTIAL settlement with Lisa indicating she agreed to pay the Henrys
an undisclosed sum from accounts stashed in the Cook Islands to protect
her ex-husband's ill-gotten fortune. On June 13, Judge Pro signed the following
ORDER confirming the funds have been paid, and dismissed Lisa from further
litigation in HENRY v. RIZZOLO. However, she's not out of the woods as
far as the IRS is concerned.
A dismissal with prejudice is a final judgment,
i.e., dismissal of a case barring the plaintiff from bringing another action
on the same claim. The dismissal of Lisa Rizzolo from this case does not
bar the Henrys or IRS from pursuing other personal assets of Rick Rizzolo.
Because of interest accrued in the Henry's settlement, several additional
millions can be collected from Rick in the event he is concealing more
But Judge Pro wasn't finished with the
|Full docket text for document 662:
ORDER that Defendant Kimtran Rizzolo
shall not attempt to withdraw, or withdraw, funds from her accounts at
Transamerica Life Insurance Company, Policy or Annuity Contract No. 121185LB8;
Metropolitan Life Insurance Company (Metlife), Policy or Contract No. 320340767;
and/or City National Securities, Account Nos. SM40012M, 361974026, and/or
361974034. Signed by Judge Philip M. Pro on 10/12/12. (Copies have been
distributed pursuant to the NEF - EDS)
Up until Judge Pro's ORDER against Lisa,
the Henrys had only collected a total of $1 million paid in 2002 from the
Rizzolo's Farmers Insurance umbrella policy. The rest of the money Henry
is owed has been stashed in annuities purchased by Kimtran - annuities
she's prohibited from touching, but were transferred to the Henry trust
per the Court's orders.
One of the insurance companies that held
Kimtran's ill-gotten money, TransAmerica, refused to comply with the court's
order and turn the money over to the Henry trust. Only after being court
ordered to pay Henry's attorneys over $25,000 in legal fees for work
they did responding to TransAmerica's bogus opposition to the Court Order,
did the insurance company reluctantly release the money.
Kimtran has appealed Judge Pro's Order.
The Circuit Court's decision is pending.
The Rizzolos also owe the IRS millions
in back taxes and penalties, however the IRS was prohibited from collecting
based on their second place position behind the Henrys per a Federal Court
Rick Rizzolo is also prohibited from declaring
bankruptcy based his plea agreement made in exchange for a shortened prison
sentence. As a condition of his parole, Rick is supposed to be selling
cars at Fletcher Jones Mercedes and not running strip clubs, but he is
never at the dealership, and has sold only one or two cars in the past
year according to sources. He claims to be broke though he's long been
suspected of being a hidden owner of the Crazy Horse III strip club in
Vegas where he's observed spending most of his time with his son Dominic.
Kimtran's current appeal claims she legitimately
inherited the money in 2010 from her deceased husband Bart Rizzolo and
had nothing to do with his business, and that the old Crazy Horse Too lost
its value when the feds refused to operate the club. (The government learned
an embarrassing lesson in 1999 when it tried to operate
the Mustang Ranch brothel to preserve its value.) Kimtran's appeal
is expected to fail as did the appeals of Rick and Lisa in past years when
their attorneys also argued that the loss of value of the club was the
fed's fault, and if it had remained open, there would have been plenty
of money available to pay Henry and the IRS.
Kimtran Rizzolo's attorney Herb Sachs claims
in his client's latest appeal that Henry's attorneys did not protect the
Crazy Horse Too asset. According to Sachs, to protect the value of the
asset, the U.S. Department of Justice would have had to operate the topless
bar until it could be sold for enough to cover the Rizzolo's debts. However,
for the club to continue raking in millions in profits to warrant a top
dollar sale, Sachs neglects to mention that it would have had to be run
per the Rizzolo's business model; skimming profits, selling drugs, prostitution,
credit card fraud, and extorting customers with the use of threatened and
actual violence, the reasons for which the club was shut down by the same
government Sachs blames for its financial demise.
Sach's argument is almost identical to
those plead by attorneys for Rick and Lisa in their appeals that were soundly
denied in 2012. The "unsellable" argument has twice before been rejected
by the Ninth Circuit Court of Appeals, and is expected to once again be
rejected at Kimtran's upcoming appeal hearing.
Per Rick's failed February 13, 2012 appeal,
attorney Dominic Gentile argued:
thereupon assumed that right and corresponding obligation but thereafter
failed to timely renew the privileged adult use and tavern licenses of
the business; and as a result, the area in which the club was located was
thereafter re-zoned by the City of Las Vegas so as to prohibit ?adult?
uses; and the club became unsellable, fell into disrepair, and has
since been foreclosed upon by the mortgagee." http://www.stevemiller4lasvegas.com/RizzoloReply02-13-12.pdf
Per Lisa's failed May 18, 2012 appeal,
attorneys George Kelesis and Mark Bailus reiterated Rick's argument: "In
September 2006, the City of Las Vegas revoked the liquor and/or business
license of the Crazy Horse Too. At the time of the revocation, an escrow
had been opened for the sale of the Crazy Horse Too in the amount of $45
Million. The planned sale of the Crazy Horse Too reportedly failed because
of the revocation of its liquor license which diminished its value."
Now, Kimtran's attorney Sachs is regurgitating
the same failed pleas: "Although the government
thereupon assumed that right and corresponding obligation, it thereafter
failed to timely renew the ?grandfathered? privileged adult use and tavern
licenses of the business, and the area in which the club was located was
thereupon re-zoned by the City of Las Vegas so as to prohibit 'adult' uses.
And as a result, the club became unsellable, fell into disrepair,
and was ultimately foreclosed upon by the mortgagee on July 1, 2011." http://www.stevemiller4lasvegas.com/RizzoloKimtranAppeal-9-19-12.pdf
Based on the above information, I predict
that the $3 million being held in trust for the Henrys will soon be released
per the imminent orders of the Ninth Circuit Court. Following that release,
it's uncertain what action the Henrys will take, but once HENRY v. RIZZOLO
is closed, its certain the IRS will begin its long overdue collection.