On February 28, 2008, the United States Federal Court granted a STAY to prevent Security Pacific Bank of California from foreclosing on the defunct Crazy Horse Too strip club in Las Vegas.
The bank in 2005 loaned Rick Rizzolo $5 million cash secured by a First Deed of Trust on the Crazy Horse Too property. He immediately absconded with the money and did not pay one payment on the loan.
After making this and many other highly questionable loans, Security Pacific went belly up. The First Deed of Trust was purchased by a California LLC.
However, the LLC was STAYED from foreclosing on the property because, at the time, the government was making a diligent effort to sell the closed Crazy Horse Too.
After all efforts to sell the business and property failed, the California LLC is now petitioning the court to release the STAY so they can seize the property and sell it to the highest bidder.
Below is a link to a fascinating MOTION filed yesterday by the LLC's Las Vegas attorney explaining their position, and giving several items of new information about this case.
If the LLC is granted permission to foreclose on the property, it may signal a "sale" has taken place, therefore opening the door for the government to require Rick and Lisa Rizzolo to "repatriate" their off-shore-stashed money to pay Kirk Henry, the IRS, and other debtors per Rick's plea agreement to make up the difference between what the club sells for, and what he owes.
Per a recent Federal Court decision, case law now exists to allow the court to imprison Defendants who refuse to "repatriate," or return funds stashed off shore that are owed to the government. - SM
stevemiller4lasvegas.com/MushkinMotion03-10-10.pdf
Steve Miller, is a former Las Vegas City Councilman. In 1991, the readers of the Las Vegas Review Journal voted him the “Most Effective Public Official” in Southern Nevada. Miller writes internationally syndicated columns on organized crime and political corruption for Rick Porrello’s AmericanMafia.com.
