KLAS-TV Channel 8 News Las VegasLas Vegas Crazy Horse Owner Accepts Tax Fraud Plea Deal

Las Vegas Crazy Horse Owner Accepts Tax Fraud Plea Deal

The owner of the Crazy Horse Too strip club admits he broke the law and has agreed to give up his future in the strip club business forever.

Crazy Horse Too: List of Defendants

Crazy Horse Too: Guilty Pleas

Forty-seven-year-old Rick Rizzolo appeared before a judge Thursday afternoon.  In additional to getting out of the adult business, Rizzolo could serve a maximum of 16 months in prison.

Eighteen former Crazy Horse Too employees have already pleaded guilty to federal charges ending a decade of investigations.

More than a dozen defendants went before a federal judge on Wednesday as part a plea agreement in a tax fraud scheme.

It will result in millions of dollars in fines, and the sale of the club but those involved might avoid jail time.

Early on, there were accusations of ties to the mob and racketeering. But Wednesday the case was narrowed down to tax fraud and the defendants say it's time to face the consequences.

An investigation that began ten years ago here at the Crazy Horse Too nightclub brought 16 defendants to the federal courthouse.

In avideo from 2003, more than 80 federal agents stormed the club confiscating money and documents. The government was looking for any document that showed hidden ownership of the club by organized crime families. The case has been boiled down to an issue of tax fraud in a plea agreement.

Attorney David Chesnoff says his client Vinnie Faraci is pleased with the deal. "For years and years there's been allegations of racketeering and other things and that's just not the case."

"They took tips from dancers. They tipped the managers 15 % andthey reported it so at the end of the week it seems they underreported it," said John Spilatro, attorney.

Spilatro represents Roco Lombardo. He says without the plea deal it could have been a long trial because all of the evidence would have to be examined.

"The case is a monster case. They've got rooms of documents and thousands of hours of surveillance tapes and audio tapes," Spilatro said.

Attorney Tony Sgro represents Crazy Horse Too owner Rick Rizzolo. Sgro helped negotiate the plea agreement he says his clients protecting more than his own interests.

"A lot of pressure has been taken off his shoulders the pressure of his mother, sister and brother all facing prosecution if he had not taken the deal," Sgro said.

The defendants say their closer to wrapping up the case and they're glad to see it's ending more quietly than it began.

Sentencing for the defendants begins on Aug. 26.

In addition to the tax case, a tourist who was paralyzed in a fight at the Crazy Horse Too a few years ago will get a $10 million settlement.

Email reporter Lindsay Patterson at lpatterson@klastv.com