Rizzolo ordered to pay Kirk Henry's attorneys
will therefore award Plaintiffs their reasonable attorneys fees and
replying to Mr. Rizzolo’s Response to Plaintiffs’ Motion to Reveal.
are awarded their reasonable attorneys fees and costs incurred
their reply to Defendant's opposition to their Motion.
October 7, 2009 hearing, Plaintiffs argued that Mr. Kimsey
has a felony
record and that Mr. Rizzolo may have violated the terms
supervised release by having contact with Mr. Kimsey.
IT IS FURTHER
ORDERED that the Clerk of the Court shall
the United States Parole and Probation Office for the
of Nevada with a copy of this order and the
of the October 7, 2009 hearing.
States Magistrate Judge
INSIDE VEGAS by Steve Miller
October 26, 2009
LAS VEGAS - Former Crazy Horse Too owner Rick
Rizzolo claims to be broke -- so broke that his attorneys quit, and
he was purportedly forced to hire a fellow ex-con to ghost write sixteen
Pro Se legal documents. Unfortunately, Rizzolo (shown in this AmericanMafia.com
photo by Mike Christ) failed to inform the United States Federal Court
that a jail house lawyer with no legal training was the author of the documents.
The first court documents Rizzolo, a convicted
racketeer, said he personally authored included a Motion to Dismiss unpaid
beating victim Kirk Henry's entire lawsuit. Another "commanded" Henry's
attorney Stan Hunterton to appear for Deposition at one
in the morning. Both documents incorrectly listed Rizzolo's home address
as being in Las Vegas when 1760 Amarone Way is actually in Henderson, 20
miles away. (Rizzolo is living with Cliff Diamond, the son of former Nevada
State Assembly woman Renee Diamond.)
Hunterton and his co-counsel Don Campbell
immediately recognized that Rizzolo was not the author of the sixteen documents.
(Because the "F" word was not once used?). The author was actually a man
named James Kimsey, alias
Hunterton and Campbell immediately filed
a Motion requiring the Defendant to reveal the identity of his "ghost writer."
This inspired Judge Foley to issue his latest Order.
According to Las
Vegas Review-Journal court reporter Carrie Geer Thevenot; "...the
Henrys' lawyers said they had racked up $260,000 in fees while responding
to frivolous motions from Rizzolo and Kimsey. They also suggested that
the relationship between the two felons violates the conditions of Rizzolo's
release from prison."
Judge Foley instructed Henry's lawyers
to provide proof by November 7, 2009, of the legal expenses that were incurred
caused by Rizzolo's supposed Pro Se filings.
In the meantime, Rizzolo's latest attorney
Frizzell, alias The
Ticket Fixer, hit court with another attempt to stall Kirk Henry's
eight-year-long effort to collect $9 million dollars in restitution Rizzolo
agreed to pay him in exchange for a light prison sentence.
This latest OPPOSITION
filed on October 18, asks the court to prohibit Henry's attorneys from
obtaining Rizzolo's Presentence (financial) Report and Supervision Records
from the United States Parole and Probation Office.
They claim such information has "a strong presumption of confidentiality,"
and may be of interest to the news media.
In his Opposition,
Frizzell states: "...the Plaintiffs agreed to payment of restitution through
a global Settlement Agreement executed in 2006. The payment becomes due
at the time of the sale of the Crazy Horse Too by the Government. Should
the sale thereof result in a shortfall and payment of less than the entire
amount, then, and only then, does Defendant RICK RIZZOLO, become personally
obligated for the balance after the shortfall (emphasis added by Steve
Rizzolo agreed to
be "obligated for the balance after the shortfall," and the time of that
shortfall has long since gone. The Crazy Horse has been on the market for
over three years with no legitimate takers. The only prospective buyers
the U.S. Marshals have presented were persons with ties to Rizzolo, and
that was strongly prohibited by presiding United States Federal Judge Philip
But the feds have
been persistent in their quest to unload their embarrassing liability.
On August 13, 2007, Assistant U.S. Attorney Daniel Hollingsworth
the Federal Court: "The general public should not be allowed to know
the proposed offers, the proprietary information, etc., since Rizzolo will
select one to see it will complete the sale. If it fails, Rizzolo will
select the next one."
date, the one remaining offer is from a man named Christopher
Candotti, a trucking
company owner from Chicago. However, there's an interesting
coincidence worth investigating.
paragraph removed by request
Could there be an attempt underway for
Rizzolo's Chicago associates to re-gain control of the Vegas CH2?
Remember, Condotti is dealing with the
same federal officials who tried to keep the names of former prospective
buyers secret from the public. I hope the U. S. Marshals are not so intent
on trying to sell their embarrassing Vegas liability as to not be carefully
vetting potential buyers. They should have learned their lesson back in
1990 when the feds inadvertently let convicted racketeer Joe
Conforte re-gain control of his Mustang Ranch brothel in Reno.
there's the question of whether the feds can sell the Crazy Horse at all?
A group San Francisco investor/developer Luke Brugnara (left) controls,
last April purchased the Crazy Horse Too’s First Mortgage at an auction
held by the Federal Deposit Insurance Corporation (FDIC).
Brugnara has long wanted to buy the bar,
but has never been considered. His top offer was $15 million, but that
was in 2007 before the recession. Today, according to experts, the place
is worth no more than $7 million -- and that's if it had a liquor license.
At that time, Brugnara described being
stonewalled by Rizzolo’s attorneys who obviously did not want to sell the
club to an outsider, or for less than it would take to get Rick and his
ex-wife Lisa off the hook, especially with Kirk Henry and the IRS. Together,
Rick and Lisa owe more than $27 million!
In 2007, Brugnara said any deficiencies
can be recovered from the Rizzolo’s bank accounts and houses. That didn't
go over well with Rizzolo and his supporters.
So, with the Crazy Horse property looking
less and less able to cover Rizzolo's financial obligation to Kirk Henry,
Rick Rizzolo becomes more and more "personally obligated
for the balance after the shortfall." So his October 16 OPPOSITION
stating: "Disclosure of PSRs (Pre Sentence Reports) could be seen as judges
breaking faith with defendants. who are uniformly urged to cooperate with,
and make full and truthful disclosure to the Probation Office to assist
in sentencing decisions. This would not be the case if the reports were
opened to public scrutiny," may be found moot by the Federal Court, and
if so, additional information as to the whereabouts of Rick
and Lisa Rizzolo's hidden fortune may be revealed in the PSRs even
though Lisa claims the fortune is all hers because Rick gave it to her
in a sham
But that's not all
that's going on. For months, Lisa Rizzolo, Rick's ex-wife, has been trying
to get Henry's attorneys disqualified. In her latest MOTION
filed on October 21, 2009, her attorneys made the following statement:
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 Rick Rizzolo is broke (emphasis
added by Steve Miller) and the sale of the Crazy Horse Too will not
yield sufficient funds to pay the remaining sums owed to Plaintiffs.
It is Defendant's position that Plaintiffs lawsuit is meritless as Ms.
Rizzolo has done nothing wrong and the only way she can properly defend
herself at trial is to call the various attorneys including Mr. Campbell
and Mr. Hunterton as witnesses. Whether Mr. Campbell and Mr. Hunterton
like it or not, how they handled the State Court case is germane to
Ms. Rizzolo's defense as is Mr. Patti's handling of the divorce case. As
to the latter, Mr. Patti has already withdrawn as Rick Rizzolo's
attorney in this action evidently recognizing that he may have to testify
at the time of trial. For the reasons stated above, Mr. Campbell and
Mr. Hunterton should not be allowed to be both advocates and witnesses.
Accordingly, Defendants are seeking to have Mr. Campbell and Mr. Hunterton
disqualified as trial council. Such would not create an 'excessive
hardship and prejudice' on the Plaintiffs as Mr. Campbell and Mr. Hunterton
would be able to appear in pretrial proceedings as well as participating
in the discovery process, and other lawyers in their firms could still
be designated as trial council. As such, Defendants' motion should be granted."
However, tucked away on page 22 of the
page Motion, Lisa's attorneys include a document that states: "...the
obligation to make said payment upon the closing is not contingent upon
the realization of net proceeds from the sale sufficient to make the NINE
MILLION DOLLARS ($9,000,000.00) payment."
Page 22 signed by Rick Rizzolo, in addition
to Frizzell's statement (15 paragraphs above), seems to make Henry's case
And I always thought attorneys weren't
supposed to be forced to testify against their clients. And isn't
Nevada a Community
Property state where husbands and wives share equal liability for debts
incurred during the time of their marriage? Kirk Henry's neck was broken
in 2001 when Rick and Lisa were happily married. And why did the Rizzolos
have to hide
their fortune off shore if it wasn't ill-gotten?
I just don't get it!
That said, what supports Rick and Lisa's
gripe that they're not personally obligated to pay Kirk Henry, the IRS,
and others? How long is the Federal Court going to let this charade continue?
It's been over eight years since Henry's neck was broken by a Crazy Horse
employee over a disputed $88 bar tab, and what about that $7 million the
couple owes Uncle Sam?
Hopefully Judge Foley's October 23 Order
is the first in a series that will finally bring justice in this protracted
case. The judge has scheduled a hearing on Lisa Rizzolo's Motion to Disqualify
Henry's attorneys on Monday, November 9, 2009, at 2:00 PM in LV Courtroom
3A, of the Lloyd D. George Federal
District Courthouse on Las Vegas Boulevard South.
It will also be interesting to see what
Parole Officer Eric Christiansen does when he receives a copy of Judge
Foley's Order and Transcript telling of Rick's association with a known
But, the final straw may be if Rick thumbs
his nose at Judge Foley and refuses to pay Henry's attorneys as he's done
with all his other bills including the IRS.
Then there's the question of Spud's fate?
Judge Foley's Order stated: "Mr. Rizzolo relied on a non-attorney, James
E. Kimsey, to prepare legal pleadings which were then filed with the Court.
In doing so, Defendant Rick Rizzolo allowed a non-attorney to determine
the legal sufficiency of the instruments filed with the Court and relied
on Mr. Kimsey’s judgment in applying legal knowledge to the specific issues
pending in this action. As a result, the Court finds that Mr. Kimsey
engaged in the unauthorized practice of law on behalf of Defendant Rick
Unfortunately, Spud was previously convicted
of engaging in the unauthorized practice of law. Could this be the second
such offense he brought upon himself, this time for doing a favor for Rick
Rizzolo? And if he's charged, will Rick pay a real lawyer to defend him?
And they said the mob left Vegas years
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