Thursday, June 8, 2017 | 2 p.m.
The former owner of the Crazy Horse Too strip club pleaded guilty today to evading more than $1.7 million in employment taxes, according to the Office of the U.S. Attorney for the District of Nevada.
Frederick John Rizzolo, 58, of Las Vegas owed the taxes for 2000 through 2002, according to documents filed in U.S. District Court.
Rizzolo paid the club’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of the payments to the club’s bookkeepers, U.S. Justice Department officials said in a news release. This caused false employment tax returns to be filed with the IRS that underreported wages paid and taxes due, officials said.
In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States, officials said.
Following his plea, however, Rizzolo took steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes, officials said.
For example, Rizzolo directed $900,000 he received from the sale of the Crazy Horse Too to an offshore bank account in the Cook Islands, officials said.
He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn gave the money back to Rizzolo, avoiding an IRS levy and seizure of the funds, officials said. In addition, he lied to an IRS collections attorney, falsely stating that he had no income or assets and no ability to pay the taxes owed, officials said.
Sentencing is set for Sept. 15. If the court accepts the parties’ agreement, Rizzolo will be sentenced to two years in prison and ordered to pay $2.6 million in restitution to the IRS, officials said.
