Federal Court orders Kimtran Rizzolo's assets seized
Kimtran and Lisa Rizzolo file appeals with Ninth Circuit Court
Dominic Rizzolo arrested for assault with a deadly weapon

INSIDE VEGAS by Steve Miller
AmericanMafia.com
May 28, 2012

LAS VEGAS - Two weeks before his release from a second term in federal prison, convicted racketeer Rick Rizzolo's troubles are just beginning.

Back on April 3,  the U.S. Ninth Circuit Court of Appeals unceremoniously disposed of  Rizzolo's appeal of an additional 9 month prison sentence and 24 month extension of parole for violating his conditions of supervised release that mandated he honor his plea agreement to pay all court ordered personal obligations including $9 million plus interest in restitution to beating victim Kirk Henry, and millions of dollars in back taxes.

Rick Rizzolo contended that Henry's attorneys should not have been allowed to speak at his sentencing and their characterization of him as a "gangster” and a “professional criminal” hell-bent on “cheating the squares,” prejudiced United States Federal Judge Philip Pro's decision. He also contended that his infamous Crazy Horse Too strip club was worth $45 million dollars, and the money to pay his debts would have come from the club's sale had the City of Las Vegas not screwed up the deal with a local restaurant owner.

The appeals court justices did not buy Rizzolo's arguments, and quickly dismissed his appeal.

Now, Rick's stepmother and ex-wife are going back to the same Ninth Circuit Court with equally questionable appeals.

On April 19, Senior United States Judge Philip M. Pro ruled that both women are illegally hiding Rick's assets from his creditors, and that U.S. Marshals must within 60 days seize over a million dollars from Kimtran Rizzolo, widow of Rick's father Bart Rizzolo. Judge Pro also opened the door for Henry to sue Lisa Rizzolo for the fraudulent transfer of funds to the Cook Islands after a "sham" divorce, assets she did not declare on her 2005 and 2006 income tax reports.

Judge Pro issued a six page ORDER stating:"Rick Rizzolo’s share of the community property that was fraudulently transferred to Lisa Rizzolo is also subject to the judgment." "However, a tort committed during the marriage by one spouse is considered a community debt, and the entirety of the community property is subject to a judgment against the tortfeasor spouse, even if the other spouse was not a named party to the suit. Here, Kirk Henry was injured in September 2001, Plaintiffs filed suit against Rick Rizzolo in October 2001, and the Rizzolos divorced in June 2005. Because the conduct giving rise to Plaintiffs’ claim against Rick Rizzolo occurred during the marriage, Plaintiffs’ claim against Rick Rizzolo is a community debt. Accordingly, Lisa Rizzolo’s share of the community property is 'subject to process by a creditor holding a claim against only one tenant' as set forth in NUFTA (Nevada Uniform Fraudulent Transfers Act) § 112.150(2)(c), and therefore falls within the definition of an 'asset' that can be fraudulently transferred. Moreover, to the extent the divorce settlement inequitably divided the community assets and Rick Rizzolo fraudulently transferred a portion of his share of the community property to Lisa Rizzolo through the divorce, Rick Rizzolo’s share of the community property that was fraudulently transferred to Lisa Rizzolo is also subject to the judgment. This is so even though Rick Rizzolo settled the claim and breached the settlement agreement after the divorce. Married couples may not avoid community debts by (1) making fraudulent transfers through a divorce, (2) settling the community claim against the spouse who fraudulently transferred community assets, and (3) breaching the settlement agreement, leaving the spouse who fraudulently transferred community assets without sufficient means to satisfy the liability owed to the third party creditor. As this Court already has determined a reasonable jury could find the Rizzolos’ divorce constituted a fraudulent transfer, the Court will deny Lisa Rizzolo’s Motion on this basis."

Later that same day, Judge Pro issued another ORDER, this one stating: "Defendants Rick Rizzolo and Kimtran Rizzolo shall make the necessary arrangements to transfer funds in the amount of $1,052,996.03 to Plaintiffs Kirk Henry and Amy Henry within thirty (30) days."

Thirty days later on May 21, the funds from Kimtran had not been transferred, and attorneys for both women filed costly last minute appeals to the Ninth Circuit Court.

 
 
 
 
 

The next day, May 22, the Rizzolo's 30 year old son Dominic (mug shot) was arrested in Florida for trying to kill a man with a hammer. It was Dominic's second arrest for Aggravated Assault with a Deadly Weapon.
 
 
 
 
 
 

Kimtran Rizzolo's 446 word APPEAL

Lisa Rizzolo's 32 page APPEAL

News coverage of Dominic Rizzolo's arrest

In response to Kimtran's refusal to comply with a court order, on May 22, Judge Pro issued a two page WRIT OF EXECUTION commanding the United States Marshals seize within sixty days her personal property and assets including her million dollar home (photo by Mike Christ) if $1,052,996.03 in liquid funds were not made available. The money was part of a 2006 plea agreement in which Rick Rizzolo agreed to pay Henry $10 million restitution in exchange for a shortened prison sentence. ($1 million was initially paid to the Henrys from Rizzolo's Farmers Insurance umbrella policy, and $897,007.29 was later seized from the secret sale of the Philadelphia Crazy Horse Too.)

After signing the plea agreement, Rick spent an initial 12 months in federal prison when he would otherwise have been given five years. He was released on April 3, 2008, but reneged on his side of the plea agreement, and in 2011 was sent back to prison for nine additional months with a two year extension of his parole based on the Rizzolos concealing $3 million dollars he was to receive from the sale of his interest the Philadelphia Crazy Horse Too strip club, money intended to go to Henry.

As of May 28,  U.S. Marshals have not taken possession of Kimtran's house indicating that adequate funds may have been located in her bank accounts to pay Henry the $1,052,996.03 she's been concealing for her stepson and his ex-wife.

The main argument in Kimtran's Ninth Circuit Court appeal is that her late husband was owed an undisclosed amount of money from his son Rick, and that she should be credited for whatever that amount was, and for criminal defense attorney's fees her late husband paid on Rick's behalf.

If the court rules in Kimtran's favor, and they're not expected to, she would be returned the majority of the $1,052,996.03 that's about to be seized. The Ninth Circuit Court is expected to rule sometime this fall.

In Lisa's Ninth Circuit appeal, she mainly argues that Henry's Nevada Uniform Fraudulent Transfers Act case belongs before the Nevada Supreme Court, not in the United States Federal Court. That the City of Las Vegas screwed up the $45 million dollar sale of the Crazy Horse Too to a twice bankrupt local restaurateur with no money. That Henry could have already been paid had the city not ruined the sale by revoking the club's liquor license. That she was not aware her husband was involved in criminal activity during their entire marriage. And last but not least, that her ex-husband did not personally break Kirk Henry's neck, so Rick and Lisa should not be held personally responsible for Henry's injuries even though they were married at the time when one of their managers tried to kill him over his refusal to pay a padded bar tab.

"Defendant Lisa Rizzolo respectfully requests that this Court certify a question to the Nevada Supreme Court of whether a creditor of one spouse can collaterally attack the award of community property in a Nevada divorce decree as a fraudulent transfer under NUFTA in light of the countervailing statutory authority contained in NRS 125.185. Defendant Lisa Rizzolo believes that if this matter were to proceed to trial without the guidance of the Nevada Supreme Court, the April 19 Order would be improperly applied as the same. Accordingly, there is a dire necessity that the April 19 Order be corrected."

But Lisa's most heart rendering plea is: "Defendant Lisa Rizzolo will be irreparably injured if the April 19 Order is not corrected. Specifically, the April 19 Order allows the Henrys, if they prevail at trial, to satisfy Rick Rizzolo’s $9 Million separate contractual debt from community property awarded to Defendant Lisa Rizzolo. Undoubtedly, Plaintiffs will seek to attach and/or garnish Defendant Lisa Rizzolo’s assets, including her real property, to satisfy the same," i.e., Lisa could lose her multi-million dollar 6,000 square foot Canyon Gate Country Club estate, the site of numerous political campaign fund raisers for local and state judges, district attorneys, and other high level elected officials.

Lisa makes her remand-back-to-state-court argument seven times in her 32 page appeal for a very understandable reason. The Rizzolo's have a close family friend on the Nevada Supreme Court -- its former Chief Justice Nancy M. Saitta. Saitta was a frequent guest in the Rizzolo mansion and was observed during the couple's lavish political fundraisers being hugged and kissed by Rick. As an influential member of our state's highest court, Justice Saitta could stall Kirk Henry's case for years or influence her court's ruling to favor those who helped her get elected.

Justice Saitta (left) was the same judge who once had five simultaneous "randomly selected" cases on her court docket that included Rick Rizzolo as a litigant. One was the 1995 beating death of long haul trucker Scott David Fau wherein she advised the jury to not consider blunt force trauma as the cause of death. Based on her admonition, Fau's widow and three daughters lost their case, and subsequent beatings and robberies took place at the Rizzolo's strip club including that of Kirk Henry.

It was suspected that at her request, a court clerk was setting aside Rizzolo's cases and scheduling them when Saitta's name came up in rotation on the court's computer. Otherwise such a coincidence is not technically possible. (see: http://www.americanmafia.com/Inside_Vegas/1-9-12_Inside_Vegas.html ).

Justice Saitta has also been the subject of a very revealing national news article published on June 8, 2006 in the Los Angeles Times entitled: "In Las Vegas, They're Playing With a Stacked Judicial Deck - JUICE VS. JUSTICE."  "Some judges routinely rule in cases involving friends, former clients and business associates -- and in favor of lawyers who fill their campaign coffers," referring to Saitta and several other local judges.

If the Ninth Circuit remands Kirk Henry's federal NUFTA case back to the state high court, It's clear that Justice Saitta could do another favor for her friends. Based on the Nevada Supreme Court's busy schedule, it often takes up to five years for a case to be scheduled. If Lisa Rizzolo wins her appeal, it could take until 2017 for Kirk Henry's case to reviewed!

That said, I believe both new appeals are merely make-work projects for greedy local lawyers to drain money rightfully owed to Henry, the IRS and other creditors, and as was the case with Rick's 2012 appeal, the latest appeals will also result in humiliating defeat.