Former Vegas strip club owner gets 2 years for tax evasion
LAS VEGAS (AP) — The ex-owner of a strip club in Las Vegas where a Kansas tourist was beaten and left paralyzed by employees in 2001 was sentenced Friday to two years in federal prison for tax evasion.
Former Crazy Horse Too owner Frederick “Rick” Rizzolo also was ordered by Chief U.S. District Judge Gloria Navarro to pay $2.6 million in restitution to the Internal Revenue Service.
Rizzolo’s attorney, Richard Tanasi, didn’t immediately respond to messages about the sentence announced by Acting U.S. Attorney Steven Myhre. It had had been expected under an agreement that had the 58-year-old Rizzolo plead guilty in June to evading tax payments from 2000 to 2002.
Admitting he paid employees in cash, failed to keep accurate records and underreported wages paid marked the second time in 11 years the former owner of the white-pillared, Roman-themed club just off the Las Vegas Strip pleaded guilty to federal crimes.
In 2006, Rizzolo pleaded guilty to conspiring to defraud the government and was sentenced to a year and a day in prison.
The club, under the corporate name The Power Company Inc., pleaded guilty at the same time to racketeering, ending a decade-long federal probe of ties to the mob. The plea acknowledged that employees padded customers’ bills and used force to compel payment of disputed charges.
Rizzolo agreed at that time not to contest almost $17 million in fines, forfeitures and restitution to be paid by the club, which he was required to sell.
But prosecutors alleged that Rizzolo concealed assets, falsely stated that he had no income or assets and used at least one offshore bank account.
Kirk Henry, the Olathe, Kansas, man whose neck was broken by club employees in a dispute over an $80 bar tab, was to have received $10 million in restitution under the 2006 plea arrangement. He died this year with some $8.8 million still owed.