30 October, 2017
Topless cabaret mogul sent back to prison
Article witten by SCN. Additional content from reviewjournal.com.
Former Las Vegas strip club owner Rick Rizzolo is required return to federal prison for two years and pay over $2.6 million in taxes that he evaded, a federal judge ruled Friday.
In June, Rizzolo openly admitted to evading over $1.7 million in employment taxes on wages paid between 2000 and 2002. He declined his right speak during his sentencing hearing, except to tell U.S. District Judge Gloria Navarro that he understood the proceeding.
According to his lawyer, Richard Tanasi, he stated to the judge that Rizzolo has not had the means to make payments since his 2014 indictment.
"It was a matter of dollars and sense, not evasion," Tanasi said. "He simply does not have the funds, and that's why payment has not been made."
The 59-year-old Rizzolo, a businessman who owned the strip club Crazy Horse Too, must make payments of $25 per quarter while he is incarcerated, Navarro decided.
Rizzolo is expected to surrender by Jan. 26, and once he is released, his payments toward the total owed increase to 10 percent of his gross income.
The plea agreement marked the second deal Rizzolo has struck with the government since 2006, after a decade long federal racketeering investigation, when authorities suspected he was running an extortion racket out of his topless cabaret.
Authorities have said Rizzolo hid cash payments to strip club employees characterized as henchmen who hustled patrons.