KLAS-TV Channel 8 News Las VegasFBI Investigation of Las Vegas Strip Club Wrapping Up
An investigation of possible organized crime activity involving a topless nightclub is finally nearing an end.
Agents with the Federal Bureau of Investigation have been probing the Crazy Horse II nightclub for several years. However, a tentative deal was reached between the club and the government on Wednesday.
The investigation has been underway for perhaps eight years and negotiations on a possible plea deal have been going back and forth for more than a year.
Finally, it looks like an agreement was reached this afternoon. Agents with the Federal Bureau of Investigation have long suspected possible mafia ties by persons at the crazy horse.
They've had the phones bugged for years, staged a massive raid on the club a few years ago, alleged in sealed documents that the owner and key employees were engaged in a pattern of racketeering and credit card fraud and that numerous patrons had been beaten up over the years. Now, we are told, defense attorneys have boiled it all down to a tax case.
If the tentative deal holds, the 18 possible defendants would agree to plead to tax violations, but there will be no rico charges, no organized crime charges, nothing like that. All 18 would potentially be eligible for probation and the government would consider standing mute at the sentencing.
Club owner Rick Rizzolo has agreed to pay a fine of five million dollars, will set aside $10 million for customer Kirk Henry who was paralyzed after getting into a beef at the club, and Rizzolo would agree to sell the Crazy Horse within a year.
It's possible that some of the proceeds from the sale would also go to the government. Rizzolo will agree to never get back into the business again.
Contrary to recent reports, Rizzolo has not agreed to spend two years in prison and may not have to do any time at all. Rizzolo's attorney Tony Sgro has been negotiating with the government and reportedly met this afternoon with Chief Prosecutor Eric Johnson.
Tony Sgro was not available to comment since the deal, at this point, is only in draft form and has not been signed by all parties.
A trial of Rizzolo and the others could have lasted a full year and cost millions of dollars on both sides. This daunting possibility helped to convince both sides to negotiate a deal.
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