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 9-10-12
Inside Vegas - Steve Miller

Steve Miller is a former Las Vegas City Councilman. In 1991, the readers of the Las Vegas Review Journal voted him the "Most Effective Public Official" in Southern Nevada. Visit his website at: http://www.SteveMiller4LasVegas.com


Kimtran Rizzolo To Face Civil Contempt Charges
Showdown In Federal Court On Monday, Sept. 10, 2012

INSIDE VEGAS by Steve Miller
AmericanMafia.com
September 10, 2012

LAS VEGAS - Since the March 19, 2010 death of Bart Rizzolo, father of convicted racketeer Rick Rizzolo, Bart's widow Kimtran has been engaged in an expensive drawn out legal battle to try to keep the $3 million dollar proceeds from the 2008 sale of the Philadelphia Crazy Horse Too strip club once partly owned by her stepson Rick and his ex-wife Lisa.

The U.S. Federal Court ruled that the entire $3 million was to be transferred to beating victim Kirk Henry to apply to over $10 million in restitution the Rizzolos owed after one of their Las Vegas Crazy Horse Too managers broke Henry's neck in 2001 when the Kansas tourist disputed an inflated bar tab. To date, Henry has collected just under $2 million from the Philly sale leaving a balance of $1,052,996.03 that the Rizzolos have no intention of paying. Otherwise, the Rizzolos have personally paid little to nothing to lessen their $10 million dollar court ordered debt to the Henrys even though Rick agreed to pay it in exchange for a shortened prison sentence.

To try to gum up the works and stall collection efforts, Kimtran through her attorney Herb Sachs filed an appeal with the Ninth Circuit Court, and filed briefs with the U.S. District Court arguing that the balance from the Philly sale is hers. She claims her late husband was owed an undermined amount from the Philly sale to pay back purported loans he made to his son, and money Bart purportedly paid toward his son's endless legal bills, therefore little is left from the $3 million to pay Henry. The court disagreed, and based on a motion by Henry's attorneys Stan Hunterton and Don Campbell, scheduled a Civil Contempt hearing for September 10.
 
Case 2:08-cv-00635-PMP -GWF Document 607 Filed 06/21/12 Page 1 of 4

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
* * *
KIRK and AMY HENRY, 
Plaintiffs, 
vs. 
FREDRICK RIZZOLO aka 
RICK RIZZOLO, an individual, 
LISA RIZZOLO, an individual, 
THE RICK AND LISA RIZZOLO FAMILY TRUST, 
Defendants. 

ORDER

Before the Court is Defendant Kimtran Rizzolo?s Motion for a New Trial or in the Alternative, to Alter or Amend Judgment (Doc. #587), filed on May 18, 2012. Plaintiffs filed an Opposition (Doc. #601) on June 4, 2012. Defendant Kimtran Rizzolo did not file a reply.

On April 19, 2012, this Court granted summary judgment in Plaintiffs? favor on fraudulent transfer claims against Defendant Kimtran Rizzolo (?Kimtran?), and entered Judgment in the amount of $1,052,996.03 (emphasis added by INSIDE VEGAS). (Order (Doc. #583), J. (Doc. #584).) Kimtran now moves for a new trial or to amend the judgment under Federal Rule of Civil Procedure 59(a)(2). Kimtran argues she was a good faith transferee under Nevada Revised Statutes § 112.220(1). Alternatively, Kimtran requests that the Judgment be altered to limit it to the amount she actually received from Bart Rizzolo less any loans made to Fredrick Rizzolo or any attorney?s fees paid on Fredrick Rizzolo?s behalf. Plaintiffs oppose the Motion, arguing it is untimely.

Federal Rule of Civil Procedure 59(a)(2) provides that ?[a]fter a nonjury trial, the court may, on motion for a new trial, open the judgment if one has been entered, take additional testimony, amend findings of fact and conclusions of law or make new ones, and direct the entry of a new judgment.? A party must file a motion for new trial or a motion to alter or amend judgment under Rule 59 ?no later than 28 days after the entry of judgment.? Fed. R. Civ. P. 59(b), (e). To determine whether a Rule 59 motion is timely, the Court excludes the day judgment was entered, countsevery day thereafter including weekends and holidays, and includes the last day of the period unless the last day is a weekend or legal holiday. Fed. R. Civ. P. 6(a)(1). The Court cannot extend time to file a motion for new trial or to alter or amend a judgment under Rule 59(b) or (e). Fed. R. Civ. P. 6(b)(2). The Court lacks jurisdiction to consider an untimely filed Rule 59 motion. Tillman v. Ass?n of Apartment Owners of Ewa Apartments, 234 F.3d 1087, 1089 (9th Cir. 2000). Judgment was entered on April 19, 2012. Any Rule 59 motion therefore was due May 17, 2012. Kimtran did not file her Motion until May 18, 2012. Her Motion therefore is untimely, and the Court lacks jurisdiction to consider it. To the extent Kimtran meant to file her Motion under Rule 60(b), she has not established any mistake, inadvertence, surprise, or excusable neglect; newly discovered evidence; or fraud or misconduct by Plaintiffs to support her request for relief from the Judgment. Fed. R. Civ. P. 60(b)(1)-(3). Kimtran also has not shown grounds for voiding the Judgment or that the Judgment has been satisfied. Fed. R.

Finally, Kimtran has not shown the Court should grant her relief from the Judgment for ?any other reason that justifies relief.? Fed. R. Civ. P. 60(b)(6). Although Kimtran argues Plaintiffs failed to show at summary judgment that she did not receive the fraudulently transferred funds in good faith, it was Kimtran?s burden to establish a genuine issue of fact regarding this affirmative defense. Herup v. First Boston Fin., LLC, 162 P.3d 870, 876 (Nev. 2007) (holding that ?to establish a good faith defense to a fraudulent transfer claim, the transferee must show objectively that he or she did not know or had no reason to know of the transferor?s fraudulent purpose to delay, hinder, or defraud the transferor?s creditors.?). Kimtran presented no evidence and made no argument in response to Plaintiffs? summary judgment motion that she was a good faith transferee. Her present Motion likewise lacks any evidentiary support for her claim that she is a good faith transferee.

Further, to the extent Kimtran seeks to amend the Judgment to offset loans Bart Rizzolo purportedly made to Rick Rizzolo, she cites no legal authority supporting her position. Similar to her response to Plaintiffs? summary judgment motion, Kimtran provides no evidence to establish any such loans were even made, when any such loans were made, in what amount, and the remaining balance at the time of the fraudulent transfers. (See Order (Doc. #583) at 10.) The Court therefore has no evidentiary basis to offset the Judgment even if such an offset were warranted.

However, pursuant to Rule 62.1(a)(3), the Court hereby indicates that it would clarify the Judgment pursuant to Rule 60(a) were an appeal not presently pending which precludes the Court from clarifying the Judgment. See Fed. R. Civ. P. 60(a) (permitting district court to correct mistakes in a judgment unless an appeal has been docketed and is pending, in which case ?such a mistake may be corrected only with the appellate court?s leave?). Specifically, the Court would clarify that as the recipient of fraudulently transferred funds, Kimtran must disgorge only so much of the Judgment as she actually received from Bart Rizzolo.

IT IS THEREFORE ORDERED that Kimtran Rizzolo?s Motion for a New Trial or in the Alternative, to Alter or Amend Judgment (Doc. #587) is hereby DENIED.

IT IS FURTHER ORDERED that a hearing on Plaintiffs? Motion for Order to Hold Defendant Kimtran Rizzolo in Civil Contempt (Doc. #603) is set for Monday, September 10, 2012, at 3:00 p.m. in Courtroom 7C, in the United States District Court, District of Nevada, located at 333 S. Las Vegas Blvd., Las Vegas, Nevada, 89101.

DATED: June 21, 2012
PHILIP M. PRO
United States District Judge

In anticipation of the court's action on Sept. 10, attorneys for Kirk Henry put a lien on Kimtran's million dollar home in southwest Las Vegas.


                                         Kimtran Rizzolo's estate (photo by Mike Christ)

Meanwhile, Rick Rizzolo is out of prison, and sources tell INSIDE VEGAS he's selling cars during the day at Fletcher Jones Mercedes-Benz on West Sahara Ave., then drinking heavily most nights in the VIP room at the Crazy Horse III (purportedly not affiliated with Rizzolo though a number of his former Crazy Horse Too employees work there). This, after letting his ex-wife and stepmother get caught holding the bag for hiding his money.

After Kimtran and Lisa Rizzolo conspired to hide Rick's ill-gotten fortune in annuities, and with the help of an unscrupulous attorney, hide millions more in off shore accounts to avoid paying Henry and the IRS, the Feds have yet to take any criminal action against the two women.

And for the past four years, Rizzolo's old Crazy Horse Too building has sat empty and deteriorating in the Vegas heat while its buyer at auction, Abraham Assil, looks for a tenant, or someone to buy him out.

Assil was recently successful in convincing the Las Vegas City Council to grant the property permanent adult use zoning, though any buyer or lessee will be obligated to make sure serious structural defects caused by years of underground water and sewer leaks are repaired, and to lease parking space under the Sahara Ave. overpass from the Nevada Department of Transportation (NDOT) because the property has very few on-site parking spaces.

Similar 26,000 square foot public facilities are required by city law to provide at least 300 parking spaces. Former LV mayor Jan Jones, ex-wife of Mercedes dealer Fletcher Jones, a Newport Beach neighbor of the Rizzolos, waived parking and traffic studies as an obvious favor for her Newport Beach friends. The Rizzolos were only required to provide 134 spaces resulting in a lawsuit filed by neighboring property owners who correctly claimed Rizzolo was allowed to forego legally required traffic, parking, and occupancy studies resulting in patron's parking on nearby private property and monopolizing curbside spaces at adjacent low income apartment buildings.

Now that Jan Jones is out of office, for the first time, parking, traffic, and occupancy studies will be required for a new liquor license to be issued for the infamous Crazy Horse Too building. This will guarantee a lessened occupancy number than the Rizzolos were gifted. The only consolation is that NDOT has scrapped its plan to take 23 feet off the front of the property for a road widening.

INSIDE VEGAS will be at Kimtran Rizzolo's Civil Contempt hearing and will report the outcome in an upcoming AmericanMafia.com column.

MORE INFORMATION ON KIMTRAN RIZZOLO:
http://www.americanmafia.com/Inside_Vegas/8-13-12_Inside_Vegas.html
http://www.americanmafia.com/Inside_Vegas/8-6-12_Inside_Vegas.html
http://www.americanmafia.com/Inside_Vegas/4-23-12_Inside_Vegas.html
http://www.americanmafia.com/Inside_Vegas/1-16-12_Inside_Vegas.html
http://www.americanmafia.com/inside_vegas/11-21-11_Inside_Vegas.html
 



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