Terrible News For Rick Rizzolo!

U.S. Attorney Daniel Bogden is back on the case and
the Government says Rizzolo should be required to
begin making restitution payments to Kirk Henry

Crazy Horse Too sells for $10 million less
than Rizzolo owes Henry and the IRS
 

Case 2:06-cr-00186-PMP-PAL Document 322 Filed 04/23/10 Page 2 of 12   1. DEFENDANT’S MOTION FOR FINAL SATISFACTION SHOULD BE DENIED AS THE GOVERNMENT DID NOT STEP INTO THE SHOES OF THE DEFENDANT FOR PURPOSES OF MEETING HIS RESTITUTION AND FORFEITURE OBLIGATIONS FROM HIS CONVICTION OR HIS DISTINCT CONTRACTUAL OBLIGATIONS TO THIRD PARTIES. (emphasis added by Steve Miller) A. No Privity Of Contract Exists Between The Government And Any Third Party To Step Into The Shoes Of Defendant. The Government in its plea agreements with defendants Rizzolo and the Power Company, Inc. made clear that its agreements did not limit or impinge on any third party’s legal claims against defendant. (Doc. #7, at 11; Doc. #8, at 9.) Without some privity of contract, the Government could not step into Rizzolo’s shoes in relation to Kirk Henry’s and his wife’s separate legal rights to seek damages. The Government in its papers asking for forfeiture and substitution of assets related to the Crazy Horse Too at no time suggested that it intended to step into the shoes of defendant Rizzolo or assume responsibility for his debts to the government and private third parties. Indeed, the Court’s order granting the substitute forfeiture of assets relating to the Crazy Horse Too merely indicated that the forfeited assets “shall be sold and applied to defendant Power Company Inc., doing business as The Crazy Horse Too, and Frederick John Rizzolo’s forfeiture and restitution obligations.” (Doc. #62, at 2.) In fact, the Government and the Henrys in their settlement agreement concerning the Henry’s claims against the forfeited Crazy Horse Too property specifically included a clause that provides: Nothing in this Petition and Settlement Agreement, Stipulation for Entry of Order of Forfeiture, and Order is construed or shall be construed to prevent the Henrys from seeking any and all relief against the POWER COMPANY INC, doing business as THE CRAZY HORSE TOO, FREDERICK JOHN RIZZOLO, and RICRIZ, LLC., which the Henrys may be entitled to, with respect to their personal injury case, any judgment entered thereon, and/or collection efforts instituted thereon.   The Government asks the Court to deny defendant’s motion for final satisfaction and to modify defendant’s conditions of supervised release to require defendant to make monthly payments to the Henrys for his restitution obligation or settlement obligation or both. DATED this 23rd day of April 2010. Respectfully submitted, DANIEL G. BOGDEN United States Attorney /s/ Eric Johnson ERIC JOHNSON Assistant United States Attorney FULL 12 PAGE DOCUMENT: http://www.stevemiller4lasvegas.com/RizzoloGovtReply04-23-10.pdf

INSIDE VEGAS by Steve Miller
AmericanMafia.com
April 26, 2010

LAS VEGAS - On April 21, 2010, the United States Department of Justice filed an ASSET PURCHASE AGREEMENT with the U.S. Federal Court in Las Vegas. The agreement indicates that the defunct Crazy Horse Too topless bar has been purchased by Christopher Condotti (below center), a trucking company owner from Chicago, for $10.5 million dollars pending approval by the Las Vegas City Council.

The bar's previous owner, convicted racketeer Rick Rizzolo, is obligated to pay court ordered debts amounting to more than $17 million dollars including $9 million to beating victim Kirk Henry, which Rizzolo erroneously claims must come totally from the sale of the bar.

Now, Daniel G. Bogden, United States Attorney for the District of Nevada has stepped back into the case and will most likely destroy Rizzolo's argument that he's not personally responsible for his debts,  or that the government stepped into his shoes and accepted responsibility for paying Henry, the IRS, and others who Rizzolo stiffed.

It was Bogden who participated in Rizzolo's 2005 plea negotiations five years into Kirk Henry's personal injury law suit and three weeks after Rick and Lisa Rizzolo's sham divorce. It was Bogden who prosecuted Rizzolo in 2006, and it was Bogden who got fired in the December 2006 dismissal of seven U.S. Attorneys by the George W. Bush administration's Department of Justice.

Bogden was replaced with interim appointees who seemed to favor Rizzolo. One of the appointees, Daniel Hollingsworth, even attempted to keep the public in the dark regarding the sale of the Crazy Horse Too. Three potential buyers Hollingsworth approved were later found to have ties to Rizzolo. Here is his amazing Motion that was rightfully Denied by U.S. Federal Judge Philip Pro:
 

Three and a half years after Hollingsworth's Motion was thrown out, Bogden is back on the scene, and Hollingsworth has been relegated to a minor role.

In the meantime, Rizzolo's attorney Ken Frizzell filed multiple frivolous Motions saying his client's debts are to be paid exclusively by the government if the sale of the Crazy Horse Too does not cover Rizzolo's total liabilities. However, Frizzell completely contradicted himself.

On October 16, 2009, Frizzell informed the court: "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." - Ken Frizzell, Esq., October 16, 2009

Six months later after the announcement of the sale, Frizzell changed his mind. "By virtue of the substitution of $33,000,000.00 in property and assets, the Defendants’ debts have been paid in full, and the final order of satisfaction must be granted."  - Ken Frizzell, Esq., April 22, 2010

Frizzell's latest Motion came eight weeks after Rick Rizzolo's parole officer Eric Christiansen on February 23, 2010, petitioned the court to modify Rizzolo's conditions of release based on Rizzolo's refusal to sign a Payment Schedule to pay Henry, the IRS, and other court ordered debtors. Christiansen wrote: "On December 17, 2009, the offender was asked to sign a Payment Schedule for U.S. District Court Clerk in which he was requested to make monthly payments towards his restitution and fine. Mr. Rizzolo declined, stating that he would not sign the document at the advice of his attorney."

Now, according to Bogden, "The Government asks the Court to ...modify defendant’s conditions of supervised release to require defendant to make monthly payments to the Henrys for his restitution obligation or settlement obligation or both."

So, if the sale of the Crazy Horse Too for $10.5 million goes through, it leaves Rizzolo responsible for making up the deficit of more than $10 million from his personal assets hidden in the Cook Islands, and he has made it clear that he and his ex-wife have no intention of making good on his plea agreement, or honoring his attorney's October 16, 2009 words to the court.

It's also doubtful that Rick will abide by his conditions of supervised release requiring him to sign a Payment Schedule to begin making monthly payments to the Henrys.
 
Included in his Plea Negotiations, Rizzolo agreed to stand personally responsible to pay the deficit in the event the Crazy Horse Too does not sell for an amount adequate to pay the following court ordered debts. He did so in exchange for a feather light prison sentence.
 

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 lein   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

Based on his latest actions, I wouldn't want to be in Rick Rizzolo's shoes right about now!

The only things that can sour the current sale of the Crazy Horse Too is if the Las Vegas City Council refuses to re-zone the property back to adult use unless the government pays the full judgment lien of $2,192,000.00 plus interest, and the government refuses; or if Condotti is found un-suitable to hold a liquor license (Chicago trucking companies are notorious for being mob owned.).

If the above two conditions are met and the sale closes, it's probable that at the Rizzolo's September, 2010 Uniform Fraudulent Transfers Act (UFTA) trial, the court will order Rick and Lisa Rizzolo to repatriate their off shore assets to pay the balance of their court ordered obligations listed above.

If Rick and Lisa refuse, case law established on Jan. 25, 2010, could inspire Judge Pro to throw Rick back in Federal prison until he decides to cooperate, and possibly incriminate his ex-wife for complicity in such an obvious sham.

Based on United States Attorney Bogden's return to this case and the response it may inspire from the Rizzolos, it might be wise forJudge Pro to immediately freeze withdrawals from Lisa's off shore accounts, and seize Rick's passport.
 
 
http://stevemiller4lasvegas.com/MILLERvsJONES.html