Judge rules against Rizzolo

A District Court judge on Tuesday ordered Crazy Horse Too owner Rick Rizzolo to stow away $1 million pending the outcome of a lawsuit filed by longtime Rizzolo nemesis and neighboring business owner, James "Buffalo Jim" Barrier.

"Have $1 million retained in escrow pending the resolution of this case," Judge Elizabeth Gonzalez ordered, upholding an earlier order that was challenged by Rizzolo's attorney Mark Hafer.

Rizzolo was not present. The former topless bar mogul is in federal prison after pleading guilty to conspiracy to evade taxes in 2007. In January, Rizzolo was sentenced to one year and one day in prison.

Rizzolo must sell his Industrial Road club by Sept. 30. But that is not the only obstacle he faces.

Barrier, a mechanic who operates an auto repair shop adjacent to the Crazy Horse Too, filed a $1 million harassment lawsuit against Rizzolo in 2002.

Barrier's attorney, Gus Flangas, argued that Rizzolo owes millions of dollars in connection with his legal troubles with the federal government. He must pay at least $17 million in fines, forfeitures and civil settlements. Flangas raised concerns that if Barrier succeeds at trial, he might not receive the $1 million settlement he seek.

Flangas said Rizzolo might hide whatever assets are left from the sale of the topless club.

"He has transferred them in marriages. He has transferred them to other people," Flangas said. "The FBI had a hard time finding his assets. How am I supposed to find the assets?"

In Barrier's lawsuit, he claims he saw plans that showed an expansion of Rizzolo's club. In the plans, Barrier said, the club had swallowed his small auto shop, Allstate Auto and Marine.

"I had a set of plans brought over to me by a construction company that shows me going out of business," Barrier said.

Barrier said Rizzolo and his managers constantly harassed him by towing cars awaiting repair in Barrier's parking lot. He claimed Rizzolo created a fake fire zone next to the shop so that Barrier could not park his customers' cars in the parking spaces.

Barrier took the stand Tuesday and said his employees had to drive vehicles to another parking area down the street and then bring them back to the shop in the morning.

"I was afraid to leave anything at my lot because of vandalism or them towing cars away," Barrier explained. "It was like being under siege."

Barrier explained that the ongoing battle has caused him to suffer chest pains and high blood pressure. He said the ordeal broke up his family; some members moved to Washington and Colorado.

Ralph Rizzolo, who served as a property manager for his brother, testified Tuesday that neither he nor the other managers harassed Barrier. He said cars were towed when they were improperly parked or when more than seven vehicles, the limit established by the court, remained in the lot overnight.

The case is expected to go to trial in 2008, after Rizzolo is released from prison.