Federal Court asked to consider nine reasons why
Lisa Rizzolo can keep her ex-husband's loot,
and Rick not be sent back to prison

1. Rick Rizzolo owes his family over $6 million dollars and has
the right to pay his relatives before the IRS and others

2. Lisa Rizzolo's off shore trusts are not "foreign trusts," so
she does not have to declare them with the IRS

3. Ms. Rizzolo did not know that Plaintiffs and the
IRS were searching for her assets

4. It's "complete and utter nonsense" to think Lisa Rizzolo
would transfer or dissipate her off shore accounts

5. A "buyer" had $45 million in escrow for the Club,
but the City of Las Vegas ruined the sale

6. The Government should have operated the topless bar

7. Rick borrows from his son to pay Kirk Henry $1,000 mo.

8. If Rick is remanded, the Henrys may not receive any
$1,000 restitution payments in the near future

9. "Mr. Rizzolo has been vilified for too long"

INSIDE VEGAS by Steve Miller
AmericanMafia.com
June 27, 2011

LAS VEGAS - Federal Judge Philip Pro gave the parties in beating victim Kirk Henry's personal injury lawsuit against Rick and Lisa Rizzolo until June 23 to file the latest round of Oppositions in a case that has dragged on for over ten years.

Judge Pro also made July 13, 2011 the deadline for Rick Rizzolo's attorneys to file responses to requests from the U.S Department of Parole and Probation, and the U.S. Attorney asking that Rick be sent back to prison for repeatedly violating his conditions of supervised release. The final hearing is set for July 20, 2011.

In 2001, Kirk Henry's neck was broken by an employee of the Rizzolo's Crazy Horse Too strip club after the Kansas tourist refused to pay a padded $88 bar tab. Henry has been a quadriplegic ever since. His beating along with many others triggered a Federal investigation and the eventual closure and seizure of the topless club, and the decade-long personal injury lawsuit.

The documents the Rizzolos filed last week revealed their latest defense strategy as to why they should not be held personally liable to pay Henry the over nine million dollars Rick agreed to in his plea bargain in exchange for an abbreviated prison sentence.

The Rizzolos want Judge Pro to believe that Rick owes his own family members over $6 million dollars, and that he has the right to pay the Rizzolos first before the IRS, Henry, and others. However, Rick does not mention where he would get the funds to pay his relatives because he has long claimed to be broke, and claimed that the funds to pay the IRS, Henry, and others would come exclusively from the sale of the defunct Crazy Horse Too which is worth a fraction of what he owes.

On July 1, a public auction will be held to sell off the remains of the strip club, but the price the property will bring under current local economic conditions is not expected to cover more than the government's reimbursable expense in preserving the asset until the court ordered sale. Therefore, the remaining court ordered obligations the Rizzolos owe the IRS, Henry, and others will have to come from the couple's personal assets they have cleverly hidden off shore with the help of asset protection attorney John Dawson, the brother of Federal Court Judge Kent Dawson who was appointed for life by U.S. Senator Harry Reid who is the business partner of Jay Brown, one of the Rizzolo's attorneys and former corporate agent.

(John Dawson's personal attorney has been attending all hearings involving the Rizzolos.)

Many believe the Rizzolos are receiving help from Reid who has cronies in the U.S. Attorney General's office in Washington, D.C., the agency that is prosecuting the Government's ongoing tax evasion case against Rick Rizzolo (Lisa Rizzolo has not yet been charged with a crime.)

On June 9, 2011, Judge Pro soundly denied Rick Rizzolo's attempt to enter into evidence the results of a lie detector test he paid for. But the questions in the test revealed the Rizzolo's latest strategy on how to keep their hands on their ill-gotten fortune -- to claim they owe most of it to relatives.

Rizzolo contended in the polygraph questions "which were reviewed with the Examinee prior to testing," that his probation officer purportedly failed to inform him of his reporting requirements, therefore he was free to deal in millions of dollars unbeknownst to his P.O., and that he did not have to report a $789,000.00 payment to his late father Bart Rizzolo because he "legitimately" owed Bart over a million dollars.
 

Two weeks later on June 22, Rick's ex-wife Lisa filed a document (excerpts below) claiming that Rick also owes her money -- this time in excess of six million dollars!

In the document she claims that the City of Las Vegas ruined the "$45 million" value of the Crazy Horse Too property by shutting it down, and that the federal government should have operated the topless bar in order to preserve its value. She also states that she did not have to list her Cook Islands bank accounts and trusts with the IRS because, "Mr. Dawson, is the protector and/or trustee of her trusts, they qualify as domestic, and not foreign, trusts."

Lisa also stated that she did not hide the existence of her off shore accounts. However, they were not revealed to Henry or the IRS until she inadvertently disclosed them in her June 5, 2009 Deposition, four years after the placement of her assets in the Cook Islands. And if she's correct that "they qualify as domestic," why hasn't the IRS seized the off shore assets from "the protector?"

Lisa claims that her off shore accounts and trusts are solely hers even though she was married to Rick during the years he operated a racketeering enterprise from which she received and gladly spent her portion of the criminally derived proceeds, much of which remain in her once-secret off shore accounts. She also claims that her 2005 divorce was not a "sham" to avoid paying her and her husband's creditors even though it occurred in the middle of Kirk Henry's lawsuit, and three months before Rick began his plea bargaining.

Court records state: "Ms. Rizzolo received the marital residence in Las Vegas, Nevada (appraised at $944,760.00), a house in Newport Beach, California worth $1.4 million, and a condo in Chicago, Illinois with a market value of $192,638.00 in 2003, as well as the Oppenheimer accounts in the amount of $7.2 million."

But according to information gathered by the the FBI, there was much more hidden loot, including $5 million dollars the Rizzolos stole from an unpaid bank loan.

Lisa also failed to mention in her court filings that the City closed the Crazy Horse Too because the "buyer" had no money, and was described by police and the City Attorney as acting like a front man for Rick Rizzolo whose family members were still running the place while Rick was in prison. The City wanted to put a permanent end to the years of violence, and they were correct in closing the business no matter what effect it had on the property's value.

Fearing that the Rizzolos might try to secretly move their assets from the Cook Islands to another off shore haven, on May 7, 2011, Kirk Henry filed for an Injunction stating: "Defendant Lisa Rizzolo has at all times relevant hereto been complicit in Rick Rizzolo's scheme to defraud Plaintiffs and frustrate their recovery of funds owed under the settlement agreement. To that end, she engaged or participated in each and every financial transaction which Plaintiffs have alleged to be fraudulent including the sham divorce. Lisa Rizzolo also acted for the benefit of Rick Rizzolo when she has made numerous payments on his behalf and failed to enforce the financial provisions of the divorce decree. As such, the Court should bar Lisa Rizzolo from transferring or dissipating any assets without seeking permission from His Honor."

In response to Henry's Motion, Lisa's attorneys described as "complete and utter nonsense" the assertion that she might try to secretly transfer her and her ex-husband's loot from the Cook Islands to another undisclosed off shore location, and that an Injunction "would create an undue hardship on her."

But Lisa's most questionable assertion is that "It is not fraudulent for a debtor to prefer one creditor over another." This after Lisa secretly transferred hundreds of thousands of dollars to her ex-husband while the IRS, Kirk Henry, and others remained unpaid.
 

Case 2:08-cv-00635-PMP-GWF Document 529 Filed 06/23/11  KIRK and AMY HENRY, Plaintiffs, vs. FREDERICK RIZZOLO aka RICK RIZZOLO, an individual; LISA RIZZOLO, individually and as trustee of The Lisa M. Rizzolo Separate Property Trust and as successor trustee of The Rick J. Rizzolo Separate Property Trust; THE RICK AND LISA RIZZOLO FAMILY TRUST; THE RICK J. RIZZOLO SEPARATE PROPERTY TRUST; and THE LISA M. RIZZOLO SEPARATE PROPERTY TRUST, THE RLR TRUST; and THE LMR TRUST, Defendants. OPPOSITION TO PLAINTIFFS’ MOTION FOR INJUNCTIVE RELIEF AGAINST THE DISPOSITION OR TRANSFER OF ASSETS In addition, Rick Rizzolo was ordered to pay Ms. Rizzolo alimony of $83,333.00 per month for sixty (60) months (emphasis added) commencing on January 5, 2006. Rick Rizzolo failed to pay any portion of the alimony owed to Ms. Rizzolo. As such, Ms. Rizzolo sought to enforce the decree for judgment on the alimony arrearages owed and for an award of attorneys fees and costs. After extensive hearings, a judgment was entered in favor of Ms. Rizzolo and against Rick Rizzolo in the amount of $4,999,980.00 plus prejudgment interest thereon at the legal rate in the amount of $1,010,460.07 plus attorneys fees in the amount of $2,500.00 for a total judgment of $6,012,940.07 together with interest thereon at the legal rate from the date of entry here of until paid. The City of Las Vegas subsequently 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. The Federal Government has since seized the Crazy Horse Too. The proceeds from a forfeiture sale of the Crazy Horse Too would have been sufficient to pay the Henrys settlement, but for the City Council’s unforeseen revocation of the Crazy Horse Too’s liquor and/or business licenses. As to the issue of concealment, Plaintiffs argue that “Lisa Rizzolo did not disclose the existence of her foreign trust to the Internal Revenue Service” Motion for Injunctive Relief Against the Disposition or Transfer of Assets. Such is incorrect. Ms. Rizzolo’s separate property trusts are not “foreign” trusts. Because her estate planning attorney, Mr. Dawson, is the protector and/or trustee of her trusts, they qualify as domestic, and not foreign, trusts. As such, Ms. Rizzolo correctly filled out her tax returns wherein the section for the disclosure of a foreign trust was not checked was completely accurate. Contrary to Plaintiffs’ assertion, Ms. Rizzolo did not know that Plaintiffs and the Internal Revenue Service (“IRS”) were actively searching for available assets. As to the latter, Ms. Rizzolo was not a party to the Federal Criminal Case and is not privy to the activities that the IRS may be conducting regarding available assets for payment of restitution, fines, etc. related to Rick Rizzolo’s obligation in said case. There is no question that Ms. Rizzolo’s half of the community estate was, and is, her property, during marriage and after divorce, and free from Rick Rizzolo’s separate contractual or tort debt. She was not a party to either the lawsuit between the plaintiffs and Rick Rizzolo, or its resolution. As such, a third party is not permitted under Nevada law to question either the parties’ decision to divorce, or the distribution of property made therein. It is not fraudulent for a debtor to prefer one creditor over another. Since her divorce in 2005, Ms. Rizzolo has conserved the assets awarded to her in separate property trusts for the benefit of her children. Now - some six (6) years later - Plaintiffs make the outrageous accusation that the assets awarded to Ms. Rizzolo in the divorce are in “significant danger” of being transferred or dissipated by her. This is complete and utter nonsense. Ms. Rizzolo will continue to do what she has done in the past, pay for her living and incidental expenses and maintain the remainder of the assets in her trust for the benefit for her children. As such, an order from this Court restricting Ms. Rizzolo from utilizing her own separate property assets would create an undue hardship on her. Such is especially true since the spousal share of community property is not liable for the debts of the other spouse. Unfortunately, it has turned out that Plaintiffs made a bad deal in the State Court Case. This is not Ms. Rizzolo’s fault. However, she has been dragged into this litigation because Plaintiffs are looking for someone with “deep pockets” to collect against as it is obvious the sale of the Crazy Horse Too will not yield sufficient funds to pay the remaining sums owed to Plaintiffs. FULL 21 PAGE OPPOSITION

But even more amazing is Rick's claim that he "has been vilified for too long," and had to borrow $4,000 from his delinquent son in order to pay a pittance of the $9 million dollar restitution he owes Kirk Henry.
 

Case 2:08-cv-00635-PMP-GWF Document 527 Filed 06/22/11 Page 2 of 78 Also, under the terms of the settlement agreement, Mr. Rizzolo is in fact not even required to pay the Henrys the other nine million dollars until the sale of the Club. It is important that this Court is left with a proper understanding as to the underlying history because Mr. Rizzolo has been vilified for too long. From the time the IRS began garnishing Mr. Rizzolo's wages, he has been unable to make the restitution payments to the Henrys and he has had to borrow money from his son in order to do so. However, Rick will not be able to continue to borrow money from his son. FULL TEXT

On July 20, Judge Pro will reconvene his court to hear final arguments from the Rizzolos, the Department of Justice, U.S. Dept. of Parole and Probation, and attorneys for Kirk Henry as to why Rick should not be remanded back to prison for violating the conditions of his parole such as not paying the millions he owes the IRS, Kirk Henry, City of Las Vegas, and others.

On June 13, Rizzolo's attorneys filed this statement hoping to convince Judge Pro to let their client remain out of jail, and continue living rent free in a $2.5 million dollar Roma Hills mansion while paying Kirk Henry a measly $1,000 per month.
 

Case 2:06-cr-00186-PMP -PAL Document 450 Filed 06/13/11 Page 2 of 35 In sum, they are clearly aware that if Mr. Rizzolo is remanded, the Henrys may not receive any restitution payments in the near future as Mr. Rizzolo will be unable to work. Additionally, it must be noted that the Henrys make a point of the fact that, to date, they have received approximately $4,000 in restitution from Mr. Rizzolo. What the Henrys fail to mention is that the $4,000.00 they have received is in fact $4,000.00 more than is currently due and owing to them pursuant to a binding settlement agreement that the parties entered into in August 2006. FULL TEXT

If on June 20, Judge Pro discounts the above far fetched objections and throws the book at Rick Rizzolo and places him back in prison for a few months, it does not mean that anyone will get paid in the near or distant future -- unless Lisa Rizzolo is indicted for her part in hiding their marital assets.

INSIDE VEGAS will be at the Crazy Horse Too public auction on Friday, July 1, and at Rick Rizzolo's parole revocation hearing on July 20.

It's hoped that following the July 1, 2011 sale of the topless bar property, and Rizzolo's own admission that "Mr. Rizzolo is in fact not even required to pay the Henrys the other nine million dollars until the sale of the Club," that Judge Pro will finally start moving this case toward a meaningful resolution the highest priority of which would be to make sure the Henrys are paid what they're owed from Rick and Lisa Rizzolo's hidden stash.

That resolution will only be possible if Lisa Rizzolo and those who helped her hide her ex-husband's vast assets are threatened with indictment.

If not, then the Rizzolos with the help of the brother of a Federal Court Judge with connections to a U.S. Senator, will have been allowed to make a mockery of our Federal Justice system.