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Jul. 07, 2006
Copyright © Las Vegas Review-Journal


Topless club under scrutiny

City pursues action against Crazy Horse Too

By DAVID McGRATH SCHWARTZ
REVIEW-JOURNAL

The city of Las Vegas is moving to take action against the Crazy Horse Too Gentleman's Club in the wake of guilty pleas on federal tax charges by the topless club's owner, Rick Rizzolo, and other club employees.

The Las Vegas City Council will decide Wednesday whether to order a disciplinary hearing, during which officials could suspend or revoke the club's tavern license and issue a fine of up to $2.2 million, according to the city's complaint released Thursday.

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The council is scheduled to decide Wednesday only whether to hold the hearing. It also would set a hearing date for within 60 days.

During that hearing, the council could revoke or suspend the club's liquor license, according to Finance Director Mark Vincent. The council also could decide to fine the club.

On June 1, Rizzolo and 16 employees pleaded guilty to various charges for actions between 2000 and 2005.

The city can punish a business whose "actual business activity constitutes a public or private nuisance, or has been or is being conducted in an unlawful, illegal or impermissible manner," according to the complaint prepared by city staff. City code also says that "the sale or other disposition of alcoholic beverages is not a matter of right but of privilege."

Under the plea agreement with the federal government, the owners of Crazy Horse Too already have agreed to pay fines totaling $17 million. Among them:

• $4.25 million to the federal government.

• $10 million to Kirk and Amy Henry once the club is sold. Kirk Henry received a broken neck outside the club after disputing a tab.

• $1.73 million to the Internal Revenue Service.

The plea agreement also calls for the club to be sold within 12 months.

Rizzolo, 47, who could be sent to prison for up to 16 months, is scheduled to be sentenced in September. His attorney, Tony Sgro, could not be reached for comment late Thursday.

It's not the first time a topless club owner has faced discipline from the City Council over a run-in with federal authorities.

In 2004, the City Council handed down a $1,017,000 fine as punishment for former strip club owner Michael Galardi's guilty plea to federal corruption charges in San Diego. Galardi had co-owned Cheetah's with his father, Jack Galardi.

The fine, the largest ever levied against a city licensee, represented the maximum fine of $1,000 a day from August 2000 to May 2003, the period during which Michael Galardi bribed San Diego officials.

Rizzolo is an admitted friend of mob associates but also has been a major campaign contributor to Las Vegas politicians. He raised $40,000 for Mayor Oscar Goodman.

Goodman has said that he has no conflict of interest and will participate in any action concerning Crazy Horse Too.

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