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JOHN L. SMITH: Incarcerated topless bar mogul faces deadline to sell Crazy Horse Too

Perhaps you remember the mechanic with the grease-stained hands from the old Fram oil filter commercial.

Wiping his mitts on a rag, the mechanic looks up from the wreckage of a car engine and tells you that if you'd only remembered to change your filter you might have avoided this costly repair.

"You can pay me now, or pay me later," he says into the camera.

Do you remember that one?


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  • My guess is that incarcerated topless bar mogul Rick Rizzolo didn't. And now he's on his way to paying a price that's much heavier than the year-and-a-day sentence he received to settle the federal criminal case against him. It's potentially heavier still than the $17 million in fines, forfeitures and civil settlements he agreed to pay to resolve his complex legal entanglement. Even Rizzolo's longtime neighbor and nemesis James "Buffalo Jim" Barrier has managed to place a $1 million lien on his property. Throw in all the secured creditors, and Rizzolo needs to clear approximately $25 million from the sale to settle all his debts.

    Nearly forgotten in the sordid "Peyton Place" that has become the Crazy Horse Too investigation and aftermath is the point made by Rizzolo's lead attorney, Tony Sgro, months ago. In so many words Sgro said Rizzolo was motivated to cut a deal with the government in part to save his family a lot of grief.

    It's no secret his father, sister, and brother worked at the club. Nor was it confidential that Rizzolo's wife, Lisa, received a whopping settlement in the couple's interestingly timed divorce. His ex-wife received a $7.2 million annuity and $5 million, according to court documents. She also received residences in Las Vegas, Newport Beach, Calif., and Chicago, and a driveway full of luxury automobiles.

    As long as Rizzolo made good on his promise to pay his sizable societal debt, only the press would be left to ask questions. He'd cut the big check, do his time, and go about his new life outside the topless racket. (Divorcing himself from the business was also part of his settlement agreement.)

    Would he sell for $25 million, $30 million, perhaps even $40 million? The speculation was rampant.

    But as the days wore on, the owner didn't appear anxious to find a bona fide buyer for the Crazy Horse Too. The closest he got was drawing the attention of controversial businessman Michael Signorelli, who had about as much chance of landing a $40 million loan as I do.

    The ever-pending Signorelli deal effectively placed federal authorities in a holding pattern as they waited a year for the joint to sell. Although the settlement agreement allowed the government and defendant to work out their differences and even to seek a third party to manage and sell the property through a "good-faith effort," by the time Signorelli was no longer in the picture the value of the Crazy Horse Too had plummeted.

    A jiggle joint located in a crummy strip mall in the middle of an industrial warehouse area next to a freeway isn't worth much once the liquor license is yanked and the dance stages go dark.

    As the sales deal foundered, the government lost its patience. Now U.S. District Judge Philip Pro has lost his patience, too. And that potentially means a major headache for the defendant and his family.

    Pay me now, or pay me later. Well, later has arrived. Judge Pro has opened the door to the government pursuing seizure of not only Rizzolo's wealth and property, but his ex-wife's as well. The U.S. attorney's motion to begin seizing Rizzolo's assets was granted by Pro, and Rizzolo has until Sept. 30 to beat his latest deadline or face the consequences. A failure to sell the property at a sufficient price would open the door to pursuing other family assets, and Rizzolo can't want that to happen.

    Court documents reflect several offers for the Crazy Horse Too, including three specific ones ranging from $31 million to $34 million. But is the club really worth anywhere near those numbers without a valid liquor license and experienced operator?

    Pay me now, or pay me later.

    If Rizzolo doesn't find a way to pay soon, he could end up with a bill much greater than he imagined.

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



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    Paul Murad wrote on September 24, 2007 03:51 PM: The land is in a perfect place for a luxury high-rise condo development. Maybe the development could be named after the crook himself, Rizzolo Luxury Towers or perhaps our conflicted Mayor---the Goldman Gardens. I am sure some smart, noble, and beautiful real estate entrepeneur could make it happen. Vertical living is the future!!!!


    Steve Miller wrote on August 25, 2007 06:50 PM: Rick and Lisa Rizzolo pulled a fast one on the Fed. Court and City Council by placing a straw man in charge of the Crazy Horse to stall for almost a year while they hid their assets from the family of beating victim Kirk Henry and others. Now Judge Pro must seize the Rizzolo's personal assets including their three houses and hold an auction to pay the Henry's, IRS, City, and Buffalo Jim.


    GOD wrote on August 21, 2007 06:20 PM: Put the hammer to this guy, his ex-wife, and family and sieze ALL his ill-gotten assets!

    RICKY "Ricardo" RIZZOLO IS SCUM!!!


    Vegas Bob wrote on August 21, 2007 02:36 PM: WTF! Quit screwing around, Govt. go for the foreclosure and foreiture by this guy's family and especially that floosy wife. Bust them down to the dirt that they all are!


    John H wrote on August 21, 2007 11:27 AM: What's is your agenda? Why does your headline seem specific, yet your article is more about throwing mud and kicking someone in the gut? Sure he probably deserves it, but if you want this to be about you exposing over and over again the same garbage why don't you just come out with your opinion about the whiole thing. YOU'RE LOVING IT!!! I bet you are one of those that preach love and family, yet through the media you are full of hate and revenge.


    Vince wrote on August 21, 2007 08:25 AM: I find it rather odd, John... that you didn't mention the effect this latest development would have on the person who was injured there and who may not have yet received his promised settlement money. If that hasn't been provided for.... there can be no Crazy Horse story without that being mentioned. It seems to me... that person would stand to lose the most. Wouldn't you agree, John?