Rick Rizzolo Crazy Horse Too owner would spend less than two years in prison under terms of deal Bobby D'Apice Sources say club's shift manager will serve more than 40 months in prison In this 2002 photo, Amy Henry removes the sling from a mechanical lifter used to move her paralyzed husband, Kirk, from his bed to a wheelchair. Sources say Crazy Horse Too owner Rick Rizzolo will agree to settle a lawsuit stemming from the 2001 beating case of Kirk Henry, who was injured after partying at the club. Review-Journal File Photo

A pre-indictment settlement in the works will allow both sides in the criminal investigation of the Crazy Horse Too topless club to declare a partial victory, sources confirmed late Friday.

After a lengthy federal investigation into the inner workings of the Industrial Road cabaret, sources say the case is on the verge of ending quietly with numerous felony convictions but few lengthy prison sentences.

Previous attempts to resolve the case have broken down, but this time sources appear confident a settlement will be reached.

The agreement, which sources confirm could be signed as early as Monday, will end an investigation that has spanned more than a decade and has included FBI and IRS Criminal Investigations agents as well as Las Vegas police detectives.

Crazy Horse Too owner Rick Rizzolo, the chief target of the tax and racketeering investigation, will agree to plead guilty to multiple felonies, sell his club and pay a multimillion-dollar fine but will serve less than two years in prison, multiple sources have confirmed.

Rizzolo, a Las Vegas casino high-roller and generous contributor to Nevada politicians, also will agree to settle the lawsuit stemming from the Sept. 20, 2001, beating case of Kansas City, Kan., tourist Kirk Henry, who suffered a broken neck and other injuries after a long night of partying at the topless club.

Former Crazy Horse Too shift manager Bobby D'Apice, who was indicted in connection with the Henry incident, could be hit hardest in the settlement. Henry attorney Donald Campbell confirmed that his client identified D'Apice as the man responsible for his injuries, which have left him paralyzed from the midchest down. In a civil deposition, D'Apice denied having anything to do with Henry's injuries and said that the Kansas tourist already was lying in pain in the parking lot when he approached him.

D'Apice, who at one time helped manage the career of adult film star Marilyn Chambers, will agree to serve more than 40 months, chiefly for his role in the Henry incident, should the settlement be made final.

The case has been a logistical challenge for defense and prosecution interests alike with up to 18 suspects targeted for indictment on tax fraud and other violations, sources said.

Although the investigation focused on allegations of recurring violence inside the club, "the lack of a smoking gun" was a sticking point in bringing the case to the indictment phase, sources said. In addition to the Henry beating, which resulted in the tourist receiving a broken neck after a dispute over an $80 bar tab following a long night of drinking, in recent years several other violent incidents were associated with business at the Crazy Horse Too.

The topless club has been the site of numerous calls to police, and Rizzolo was recently the subject of critical news reports after he was photographed at a party in the company of embattled Orange County, Calif., Sheriff Michael Carona. Rizzolo, a Las Vegas resident who owns a home in Newport Beach, contributed to Carona's political campaign. Carona is the subject of a separate grand jury investigation in Southern California, according to published reports.

In addition to D'Apice, Crazy Horse Too shift manager and reputed Bonanno crime family soldier Vincent Faraci will agree to plead guilty to a felony charge but will not have to admit any association with organized crime, a source confirmed. Faraci is the son of reputed Bonanno crime family capo "Johnny Green" Faraci and has been associated with the Crazy Horse Too since the 1980s.

Underworld activity long has been suspected at the Crazy Horse Too, where Rizzolo employed not only Faraci and D'Apice but Rocco Lombardo, brother of reputed Chicago Outfit boss Joseph "Joey the Clown" Lombardo. The late Joseph Blasko, a Las Vegas Metropolitan Police Department detective-turned-mob associate, also was employed at the club.

The investigation focused on alleged violence done to patrons of the club as well as the potential tax fraud issues associated with a business with millions of dollars of annual cash flow.

Prosecution of the case was complicated by the fact that FBI agent Robert Clymer, the author of record of the Crazy Horse Too wiretap and search warrant affidavits, was arrested in 2005 on a DUI charge. Clymer pleaded guilty in November and received a 30-day suspended sentence and 48 hours of community service.

"We strongly dispute the idea that Crazy Horse Too has not done enough to maintain order and civility within the club," Rizzolo attorney Tony Sgro said in a prepared statement to KVBC-TV, Channel 3.

"Given that more than a thousand people a day come to visit the Crazy Horse ... it is unavoidable that the occasional incident will occur."

Defense attorneys met at the Crazy Horse Too on Friday afternoon to discuss the pending settlement, but a call seeking comment from the topless club was unsuccessful.

Spokespersons for the FBI and U.S. attorney's offices also declined comment.