The Las Vegas City Council last week fined the Crazy Horse Too $2.19 million and pulled its liquor license after the club’s owner Rick Rizzolo and 16 employees agreed to a plea deal with the federal government where they admitted to racketeering and related charges.
During a four-hour hearing, the council heard emotional testimony from the wife of a man who was beaten and paralyzed by a club worker after disputing an $80 bar charge at the club, the Review-Journal reported last week. She told the council that the city’s action would force the club to close, thus endangering a $10 million settlement she and her husband would receive under the plea deal.
Under a plea deal with authorities, Rizzolo and other employees pleaded guilty to tax fraud, conspiracy to participate in racketeering and to attempting to extort payment from club customers.
Amy Henry, wife of Kirk Henry who is a quadriplegic, said the city should not close the club before they get their settlement money.
Rizzolo’s attorney, Anthony Sgro, said he would appeal the council’s decision and ask a judge to temporarily stop the city from revoking the club’s liquor license until the matter is heard in court. He added that he will also try to withdraw his client’s guilty plea with the federal government because Rizzolo would be unable to fulfill the requirements of the settlement.
Bill Henry, deputy city attorney, recommended that the council suspend the club’s license for six months and impose the maximum fine on its operator. He also asked the city to bar those pleaded guilty to felonies from the club’s day-to-day operations.
Council members said they were concerned on how their decision would impact the Henrys, but that they were also concerned about those who pleaded guilty would continue to operate the Crazy Horse Too.
Sgro said he believes the club would close without a liquor permit, impacting about 2,000 who work there. The council action would also endanger his client’s efforts to sell the club as required by his plea deal as well as the price he could get for it.
The Henrys said they have already received $1 million from the club’s insurance company and are due to receive another $9 million upon the sale of the club.
Don Campbell, an attorney for the Henrys said he and Sgro spoke at length on efforts to compensate his clients during negotiations with the federal government, but noted that he was never told that the city would step in and try to close the club.
