STATES OF AMERICA vs. SPUD?
Federal Judge goes after
Rick Rizzolo's jail house lawyer,
but ignores Rizzolo's cash
that was hidden off shore
by the brother of another
Federal Court Judge
appointed for life by Senator
Meanwhile, the IRS sits on
someone very important be running
for Rick and Lisa Rizzolo?
INSIDE VEGAS by Steve Miller
December 7, 2009
LAS VEGAS - According to a June
1, 2006 press release issued by the U.S. Department of Justice, Rick
Rizzolo agreed to pay approximately $1.73 million in restitution to
the IRS, along with agreeing to forfeit $4.25 million, which he acquired
unlawfully from racketeering activity or unlawful debt collection at The
Crazy Horse Too topless bar.
Rizzolo agreed to these conditions in exchange
for a light prison sentence, and to keep his father,
from being prosecuted.
Forty-two months have passed since his
plea bargain, and Rizzolo has not paid the IRS one penny, He's also
been out of prison for twenty-one months of that period.
Has the IRS become impotent?
Had Rick not agreed to pay the $6.23 million
to the Internal Revenue Service, plus $21 million in other assorted restitution,
fines, fees, liens, loans, penalties and interest, he'd still be locked
Here's what he agreed to pay in exchange
for less than a year in prison:
|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.;
The Clark County Taxes owed on the Property with penalties and interest
The City of Las Vegas sewer lien
The Security Pacific Bank ($5 million dollar) loan with attorneys'
fees, penalties, and interest
The restitution of US $9,000,000.00 plus interest to Kirk and Amy Henry
The restitution of US $1,734,000.00 plus accruals to the IRS
The assessment of US $500.00 plus interest
The fines of US $750,000.00 plus interest
The forfeiture 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 plus accruals
But instead of eating prison food, Rick
is regularly seen living the Vegas
high life in some of our town's most expensive clubs and bistros while
his fortune lies safe accruing interest in a Cook Islands bank.
Just imagine what would happen to you or
me if we welched on our taxes and kept spending money we're not supposed
"Hello IRS. Hello! Is anyone there?"
Since 2006, a number of Las Vegas lawyers
have been watching the Rizzolo case and wondering when the IRS will finally
come down on Rick and Lisa Rizzolo. Because it's taken so long for the
IRS to act, some speculate that the Rizzolos have an angel in the federal
government that's watching over them. The name Senator Harry Reid has been
mentioned more than once.
Senator Reid has a Vegas business partner
with connections to Rick Rizzolo, and whose name has surfaced over the
years in organized-crime
Judge Dawson John Dawson
In 2006, fifteen of the Rizzolo's former
employees got off with slaps
on the wrist after Assistant U.S. Attorney Eric Johnson and the New
York Crime Commission informed the judge of the mob status of several defendants.
The trials were held in Federal Judge Kent Dawson's court. It's not widely
known that he is the brother of asset protection lawyer John
Dawson who arranged to hide the Rizzolo's cash in the Cook Islands.
The reason few knew the connection is because the judge failed during the
fifteen trials to make a full disclosure of his brother's involvement with
the defendant's former employer.
Judge Dawson was appointed for life by
Senator Harry Reid. Reid is the business partner of Jay
Brown. Brown was Rick
Rizzolo's corporate agent along with Brown's
law partner (LV Mayor) Oscar Goodman. Brown's name has also surfaced
in a major
political bribery trial. Goodman got Rick Rizzolo off on an attempted
murder rap in the late 1980's when he and Brown were law partners.
Their firm was famous at the time for charging its criminal defense
clients a one-half-million dollar retainer, and Goodman was rumored to
share part of his retainers with friendly local judges including his former
law partner and mentor Federal Judge Harry
Claiborne who was impeached by Congress in 1986.
Coincidentally, two of Senator Reid's sons
work at Lionel Sawyer and Collins, the same law firm that employs Judge
Dawson's brother the asset protection lawyer. One of the Senator's sons,
Clark County Commissioner Rory Reid, is running for Nevada Governor. Senator
Reid and his son are expected to spend over $20 million dollars in advertising
within the state for their 2010 campaigns. Hence, the absence of local
news coverage of the Brown/Reid/Dawson/Rizzolo connection.
If it became known that the U.S. Senate
Majority Leader appointed a Federal Judge whose brother makes a fortune
in legal fees hiding cash derived from racketeering, and if that information
became known during the upcoming hotly contested U.S. Senate race, it could
affect the Senator's chance of reelection.
And if this connection became public information,
it could cast a cloud over the legitimacy of the United States Federal
Court for the District of Nevada -- the court in which unpaid
beating victim Kirk Henry's case is languishing.
I believe that Senator Reid put the kibosh
on the IRS' efforts to collect their money from the Rizzolos. I also believe
this case has become moribund because the Senator does not want the conflict
of interests of his hand picked Federal Judge exposed.
If there is an angel lurking about in D.C.
that's keeping the IRS at bay, and stalling this case for years and years,
he should take a look at the latest Las Vegas Review-Journal poll
that came out on December 4. Even while the S.E.I.U.
is currently spending millions on Nevada TV ads trying to bolster Senator
Reid's image, it doesn't look like Nevadans are impressed, and he may not
be in office much longer.
In the meantime, Nevada Federal Magistrate
Judge George Foley just threw the book at Rick Rizzolo's former jail house
lawyer James Kimsey, alias "Spud."
He did this instead of going after the real culprit, Rick Rizzolo!
Rizzolo hired the former
Hell's Angel to represent him back when he was claiming to be so broke
he couldn't afford a real lawyer. Then Rick Rizzolo intentionally
signed his name on fifteen bogus documents Spud authored.
Instead of going after Rizzolo for contempt
of court, Magistrate Foley went after a much easier target, poor Spud.
On November 30, Judge Foley issued a harshly worded ORDER
commanding "Spud" Kimsey to appear in federal court on January 29 to show
cause why he should not be prosecuted for impersonating an attorney. Since
then, Rizzolo somehow found the funds to hire a new, licensed attorney.
Who cares about Spud? It was Rick Rizzolo
who signed the fifteen documents that offended the court including a SUBPOENA
"commanding" Henry's attorney Stan Hunterton to appear for Deposition at
one in the morning! He did so fully knowing Spud was not a lawyer.
Going after Spud instead of Rizzolo is
a ridiculous waste of time for the court, and unless Rizzolo paid Spud
handsomely for his work, and is paying for his defense, Rizzolo may have
made a bigger mistake by messing with someone with outlaw biker connections.
Spud's fifteen court filings have already
stalled this case for months, while Kirk Henry spends his 9th Christmas
confined to a wheelchair waiting for the remaining $9 million he's owed.
Now, with Judge Foley going after the wrong
man, Henry will have to wait even longer.
Though he's not a lawyer himself, Rizzolo
has paid enough in legal fees to send at least a dozen worthy students
to Harvard Law School. He knew exactly what he was signing, and he knew
the effect those documents would have on the timing of Mr. Henry's case.
It's too obvious that Spud's inclusion was intentionally meant to stall
this case for months or years.
In the meantime, John Dawson can use the
lull in the case to switch his client's cash to other off shore banks that
are even more obscure than the one in the Cook Islands.
Kirk Henry has been imprisoned in his wheel
chair since October 2001. Rick Rizzolo served less that a year in prison.
And the IRS has been waiting over forty-two months to get paid! What gives?
Someone very important must be running
interference for the Rizzolos for justice to take this long!