the taxpayers bail out Rick and Lisa Rizzolo?
The Rizzolos may be stalling
- waiting for Kirk Henry
to die so they can settle
at ten cents on the dollar.
Meanwhile, new hidden assets
INSIDE VEGAS by Steve Miller
August 17, 2009
LAS VEGAS - New information has surfaced
regarding additional money allegedly being hid by the wife of convicted
racketeer Rick Rizzolo.
Local mortgage brokers report that Lisa
Rizzolo mortgaged the couple's million dollar Canyon Gate estate in October
2006, took a cash back for around $950,000, then put the money in
off shore accounts so it cannot be accessed by creditors.
According to the couple's very questionable
2005 divorce, Lisa was given three houses; one in Las Vegas; another
in Newport Beach; and the third in Chicago. All three were owned free and
clear. Now, information has surfaced indicating Lisa placed a first mortgage
on at least one of the properties, and the proceeds she received are not
According to the Clark
County Recorder, Lisa filed the following document on October 4, 2006:
|Record Date : 10/4/2006 4:34:00 PM
# of Pages: 1
Book Type: OR
Book / Page: 0 / 0
Document Type: (SUBREC) SUBSTITUTION/RECONVEYANCE
1st Party: INDYMAC BANK FSB
2nd Party: RIZZOLO, LISA
Parcel # 163-05-711-072
Real estate records indicate the INDYMAC
first mortgage was arranged by asset protection lawyer John Dawson.
The mortgage was granted months before
the Las Vegas residential real estate market began its free fall. The federal
government seized INDYMAC in July 2008, twenty one months after the
Rizzolos mortgaged their house. INDYMAC had the habit of making bogus loans.
In HENRY v. RIZZOLO Interrogatory No. 19,
Page 11, an attorney for unpaid
beating victim Kirk Henry asked Lisa to reveal: "...any creditors you
have at the present time and the amount and terms of the debt along with
any property which you claim is exempt from collection by Plaintiff or
any other creditors." Ms. Rizzolo's response was "...there is also a Deed
of Trust on the Real Property located at 8632 Canyon View Drive, Las Vegas
, Nevada 89117 with a balance owed of approximately $950,000."
According to the 08/14/2009 Zillow.com,
the 5 bedroom, 6 bath, 5,763 sq. ft. house located at 8632 Canyon
View Drive on the Canyon Gate golf course in Las Vegas sold on 08/29/2006
for $735,000 to a trust owned by none other than Lisa Rizzolo!
County Assessor lists the seller as:
|163-05-711-072 RIZZOLO LISA 20051108:05973 11/08/2005
NO STATUS 200 SUBDIVIDED LOT
and the buyer as:
|163-05-711-072 RIZZOLO LISA M SEPARATE PPTY TR
RIZZOLO LISA M TRS 20060829:06025 08/29/2006 NO STATUS
200 .37 AC
It appears the successor to INDYMAC --
the taxpayers -- took a $190,000 loss when Lisa sold the house to herself
for less than she owed in what is called a "Short
sale." It's not known whether Lisa has been making payments on the
loan, and if so, where she's getting the funds?
In 2006, Rick Rizzolo plea bargained with
federal prosecutors. He agreed to pay Kirk Henry $9 million dollars; $4.5
million to the IRS; $5 million to another defunct California bank; and
the rest to assorted creditors in exchange for a light prison sentence.
Rick served less than a year in federal prison, and since his release in
2007 has refused to pay any of his obligations by pleading
though he stiffed his creditors and can't afford an attorney, Rizzolo (LV
Sun photo) is regularly seen at a new bar-restaurant called "Daddy
Mac's Beach Grill" in Henderson. According to sources, Rizzolo is there
every night dropping $100 bills into the poker machines while getting "blasted."
My insider says Rick told him the other night that this is "his joint,"
and he is "partners" with the alleged owner Doug MacDonald, a former Piero's
bartender. Piero's is one of Rizzolo's favorite haunts in Vegas, and its
sister restaurant The
Ritz is his known hangout in Newport Beach.
In the meantime, attorney John Dawson arranged
for Lisa to stash all the couple's liquid assets in off shore accounts,
and to transfer her real estate to a bunch of questionable trusts and LLC's.
Dawson also serves as the Resident Agent
for the Crazy Horse Too's parent corporation, "THE POWER COMPANY, INC,"
and several other Rizzolo owned entities.
|THE POWER COMPANY, INC.
Business Entity Information
File Date: 6/19/1972
Type: Domestic Corporation
Corp Number: C1966-1972
Qualifying State: NV
List of Officers Due: 6/30/2008
Resident Agent Information
Name: JOHN E. DAWSON,
ESQ. Address 1: 300 S. FOURTH ST.
Address 2: SUITE 1700
City: LAS VEGAS
State: NV Zip Code:
What I find most amazing is that Dawson's
Sawyer & Collins, 300 S. Fourth St., Las Vegas, allows him to associate
with known criminals! This is the law firm that also employs the lawyer
sons of United States Senate Majority Leader Harry Reid.
Is this a case of "Where there's smoke,
Rizzolos stashed their $6 million from mortgage cash backs in off shore
accounts arranged by Dawson, the brother of United States Federal Court
Judge Kent Dawson who was appointed for life by U.S. Senator Harry Reid
(left), the business
partner of Jay Brown who was a former
Crazy Horse Too attorney and resident
agent for the Power Company, a corporation owned by racketeer Rick
Rizzolo. Judge Dawson presided over the trials of 15 Crazy Horse defendants,
and let them all off with slaps
on the wrist after they participated in years of beatings
and robberies at the topless bar. During the trials, Judge Dawson also
neglected to disclose that his brother was the attorney hiding the assets
of the former employer of the 15 defendants.
Senator Reid should realize that he's being
judged by the company he keeps.
This was the second time the Rizzolos took
advantage of an about-to-fail California bank. On February 18, 2008, INSIDE
VEGAS reported that the now defunct Security Pacific Bank placed a
first mortgage on the couple's soon-to-be-seized topless bar, and loaned
them $5 million dollars even though they had been previously warned of
the impending seizure. Rick and Lisa did not pay one payment on the loan.
Pacific was seized by the federal government in November 2008.
The only difference between the two questionable
mortgages is that the government took possession of the asset used to secure
the $5 million Security Pacific first mortgage -- the Crazy Horse
property, but has not yet seized the Canyon Gate mansion used to secure
the $950,000 INDYMAC first mortgage.
Rizzolo foolishly used a different law
& Sgro, to arrange the Crazy Horse mortgage, and he suffered the
consequences. Rizzolo lost his most valuable asset.
However, the Rizzolos hired the best advisor
available to help them hide the rest of their ill-gotten assets, John Dawson
of Lionel Sawyer & Collins. By doing so, the couple has been able to
retain the majority of their assets and cash. I broke the news of John
and Kent Dawson's involvement in my September 10, 2007 INSIDE
VEGAS column. The information I provided has gone unchallenged.
E. Dawson ~ Lionel, Sawyer & Collins ~ is a featured speaker at The
Southpac Offshore Planning Institute ~ The 2009 Annual Conference ~
Encore at the Wynn Las Vegas, October 1 & 2, 2009. He will discuss
"Domestic Asset Protection Trusts: Do They Really Work?" 1:30pm - 2:15pm
~ Thursday, October 1. It's not known whether he will use the Rizzolo's
case as an example of "Domestic Asset Protection Trusts: Do They Really
Two now-defunct California banks loaned
the Rizzolos cash at a time when Rick's name was plastered
all over the Nevada and California media for his racketeering activities.
It was no secret when the loans were made that the couple was in deep financial
trouble. Those shaky loans being made at such a time in a borrower's history
has caused speculation among courthouse observers. Were several former
bank loan officers bribed into approving the Rizzolo's loans?
"Based on our investigation and the information
provided by RicRiz's representatives, we concluded that the allegations
regarding Rizzolo's involvement in unspecified criminal activity were not
verifiable, and that some of the rumors were affirmatively inaccurate.
Accordingly, I and others recommended proceeding with the loan, which closed
on November 3, 2005." - Gregory
Alcala, 1st Vice President and Manager, Real Estate Loan Underwriting
for Security Pacific Bank.
Was it a mere coincidence that two very
troubled California banks saw the Rizzolos in the most favorable light?
Security Pacific (the taxpayers) did not
receive one dime in repayment of the loan, and INDYMAC (the taxpayers)
may suffer the same fate. In the meantime, the $6 million remains in the
INDYMAC and Security Pacific specialized
in mortgages that were written for borrowers who weren't required to provide
proof of their income and assets in order to get loans. The two banks obviously
did not do their due diligence with the Rizzolos because they turned over
the money to the couple months before, or soon after Rick began his well
publicized prison sentence.
With ample liquid assets stashed off shore
to pay all the Rizzolo's debts, U.S. Judge Philip Pro has set a hearing
for September 15, 2009 at 10:30 AM to decide the next phase in this eight
year long civil case.
At the hearing Judge Pro is expected to
rule on whether the Rizzolos can continue to keep their
hidden assets, or whether the assets should be seized to pay the couple's
over $27 million in unpaid debts.
Either way, this case has already set records
for how long criminals can remain in possession of ill-gotten assets hidden
in off shore accounts.
Rick Rizzolo is expected to act
as his own attorney at the hearing and request that the entire eight
year long case be transferred back to state jurisdiction where he has friends
in the Nevada
Supreme Court and Clark
County District Court. As a Pro Se litigant, he claims to have
personally authored over a half dozen legal Motions (without once using
the "F" word?) that must be decided by Judge Pro. However, many suspect
that Rizzolo was not the actual author, and will soon hire new attorneys
who will claim they need additional time to prepare his case thereby stalling
the resolution for several more months.
Some observers speculate that because Kirk
Henry has been a quadriplegic since 2001 when his neck was broken by one
of the Rizzolo's employees, Rick Rizzolo wants to stall the case long enough
for Henry to pass away, then attempt to settle with his family for dimes
on the dollar.
Judge to rule on Rick Rizzolo's Pro
Se Motions (in bold print):
|Full docket text for document 163:
MINUTE ORDER IN CHAMBERS of the Honorable Judge Philip M. Pro, on 8/5/2009.
By Deputy Clerk: Donna Andrews. At the Motion Hearing set for 9/15/2009
at 10:30 AM, the Court will hear argument on the following additional
motions:  Defendants' Objection to the Court's Order (#151) Granting
Plaintiffs' Motion for Enlargement of Time; Defendants' Motion for Hearing
to Stay Discovery Pending Decision on Dispostive Motions or Certification
of Questions of Law to the Supreme Court of the State of Nevada; 
Defendants' Notice of Plaintiffs' Failure to Join Indispensable Parties
and Defendants;  Defendants' Motion to Dismiss Amended Complaint,
Objection and Motion to Dismiss Second Amended Complaint, First
Alternative Motion for Summary Judgment; Second Alternative Motion to Certify
Questions of Law to the Supreme Court of the State of Nevada.
Hopefully, Judge Pro's patience is being
tested and he will finally issue a ruling that brings justice to this protracted
case during Kirk Henry's lifetime. Then we may finally learn if the taxpayers
will get what they're owed in back taxes, interest, penalties, and the
cost of bailing out banks that made questionable loans to racketeers.
Earlier this year, the Treasury Department
and Federal Reserve took the bold step of committing more than $1 trillion
in financing for loan purchases. According to CNNMoney.com,
Treasury Secretary Tim Geithner last February detailed his plan to rescue
the financial sector and "Help banks cleanse their holdings of 'toxic'
assets to get private lending up and running again."
Are the two Rizzolo mortgages what Geithner
meant by helping banks cleanse their holdings of toxic assets? Or are taxpayers
being forced to cover certain bank's bad loans and let crooked borrowers
hide the proceeds in off shore accounts? If so, this may be a perfect example
Emergency Economic Stabilization Act of 2008 gone wrong.