Tuesday, May 24, 2005
Copyright © Las Vegas Review-Journal

JOHN L. SMITH: Rizzolo in a world of hurt -- and it's only going to get worse

The approach of summer finds Crazy Horse Too owner Rick Rizzolo continuing to fade in the heat of a federal criminal investigation and an increasingly testy civil lawsuit linked to alleged violence at his Industrial Road topless club.

If you think it's not tough to endure the daily pressure of criminal investigations from the FBI and IRS, think again. A fellow would have to be an iron man to not have it bother him. That's just one reason Rizzolo's attorneys have met in recent weeks to attempt to settle with the government before an expected indictment, when different rules apply.

Rizzolo has consistently maintained he and his employees are innocent of wrongdoing in the September 2001 incident involving Kansas tourist Kirk Henry, who suffered a broken neck outside the club.

Breaking down Rizzolo's problems isn't easy, but beyond the Henry lawsuit there's the specter of a crushing IRS case against him. In a cash-rich business, the temptation to underreport income is ever-present. A conviction on tax charges alone would knock his kingdom off its foundations.

The FBI case, said to involve alleged racketeering linked to a history of violence at the club, will be more difficult to prove, but would carry the weight of a 20-year sentence. Rizzolo is a high-rolling gambler, but no one wants to face those stakes.

Rizzolo likes to mix with controversial characters such as Rocky Lombardo (brother of Chicago mob boss Joey Lombardo) and reputed mob soldiers such as Vincent Faraci. Do that long enough, and someone is going to start thinking you're one of the boys.

But Rizzolo faces pressure from a far more serious place. The Crazy Horse has long been a family affair, with his father, brother, sister and extended family enjoying lucrative employment. That's great as long as the books balance. But with IRS Criminal Investigations Division veterans poring over receipts, you can expect there's real trouble ahead.

And there's his health to consider. Rizzolo, his friends say, suffers from serious heart problems and is in no shape to wage a long, protracted war with the government.

Stand-up guy or not, there's no percentage in killing yourself over a criminal beef that's building like a heat wave.

If he were merely defending his own actions, he might have fewer worries. But he's surrounded himself with guys like reputed Bonanno family member Faraci, who has spent recent months ducking civil service.

No one with a lick of sense expected Faraci to give his deposition in the Henry case, but it was fascinating to watch how hard his attorney, David Chesnoff, fought to prevent the inevitable. When the time came to speak under oath about the Henry incident -- at the risk of being compelled to reveal other sensitive information -- Faraci took the Fifth. Sharing stories with opposition lawyers, especially those who happen to be former Organized Crime Strike Force attorneys, isn't in keeping with his reputation as a made guy. And only a rube would expect him to admit he has operated with autonomy at the club over the years.

With top New York mob guys cutting their own deals and talking like auctioneers, it's possible Faraci has other headaches coming.

There are times I'd bet Rizzolo can't believe the trouble he's in -- especially with former competitor-turned-informant Michael Galardi cutting a sweet deal after admitting he'd paid bribes to politicians.

It can't be his business. Not only is such dancing constitutionally protected, but the female form has been the biggest selling point in Las Vegas history.

And Rizzolo has worked the political system like a swing shift mayor endlessly running for re-election. Always quick with a handshake and hug, he was the fastest draw in town when it came to cutting campaign contributions for judges, councilmen and other elected types.

Until his most recent trouble, those politicians looked forward to their financial hug from their man, Rick.

That's over now.

When the serious heat comes down, it's not about your local contacts, connections or lawyers.

It's about what you want to do with what remains of your life.

John L. Smith's column appears Tuesday, Wednesday, Friday and Sunday. E-mail him at Smith@reviewjournal.com or call 383-0295.