Christopher Condotti, a trucking company owner from Chicago, has just been approved by the United States Department of Justice to purchase the long defunct Crazy Horse Too topless bar and nightclub in Las Vegas for $10.5 million. 
The extremely popular bar closed in July, 2007 and was once the haunt of porn star Jenna Jameson who used to strip there. And the nightclub was frequented nightly by many celebrities and politicians.
The bar’s previous owner, ex-felon Rick Rizzolo, is still obligated to pay court ordered debts amounting to more than $17 million dollars including $10 million to beating victim Kirk Henry which must come totally from the sale of the bar.
However, the pending sale to Condotti (listed under CC Holdings LLC, where Condotti is manager) for less than $17 million leaves Rizzolo responsible for making up the deficit from his personal assets most likely hidden in the Cook Islands, according to court records.
Because of the club’s close proximity to other adult uses, it was grandfathered in and operated for many years on a Special Use Permit that expired in 2008 following the bar’sclosure by the City of Las Vegas based on it being a public nuisance.
The current sale is dependent on the Las Vegas City Council granting Condotti a change of zoning and a permanent liquor license according to the ASSET PURCHASE AGREEMENT, released on April 21. The sale is contigent upon the club being granted several licenses, including a special-use zoning permit, a liquor license, a tobacco license and a retail sales license. The deadline for getting those is Nov. 30, 2010.
Included in the Order of Forfeiture filed in 2008, and the following document filed in U.S. Federal Court on January 29, 2010, Rizzolo agreed to stand personally responsible to pay the difference in the event the Crazy Horse Too does not sell for an amount adequate to pay his court ordered debts. He did so in exchange for a feather light prison sentence.
Based on the current sale, it’s probable that Rick and Lisa Rizzolo’s hidden off shore assets will be seized to pay the deficit in the likely event Kirk Henry or the government prevails at a Uniform Fraudulent Transfer Act (UFTA) jury trial tentatively scheduled for September 2010.
The seizure is expected unless Rick Rizzolo’s attorneys can effectively convince the jury that their client is broke, and that he transferred half his assets to his ex-wife during a legitimate divorce that was finalized one month before he began plea negotiations, and following the filing of Mr. Henry’s personal injury lawsuit. To see the full ASSET PURCHASE AGREEMENT, click here.
Vegas Backstage Access (VBA) 