Precedent could subject Rizzolo to added discipline

Dan Kulin

Wednesday, May 31, 2006 | 7:21 a.m.

Crazy Horse Too owner Rick Rizzolo may face disciplinary action from Las Vegas if, as expected, he pleads guilty to felonies in federal court.

City Councilman Gary Reese said that the council's 2004 decision to fine Cheetahs for the transgressions of Michael Galardi established a precedent for other strip clubs under the city's jurisdiction.

"Nothing's been mentioned to me, but I think that if you did it for one you should do it for two," Reese said.

In January 2004 the council fined Cheetahs' parent company, La Fuenta, about $1.1 million, but opted not to revoke the club's liquor license, after Galardi pleaded guilty in a public corruption case in San Diego. Galardi was a part owner of La Fuenta, but was bought out before the council fined the company.

Rizzolo is expected to plead guilty in federal court to a tax conspiracy charge under a plea deal in which he would face up to 16 months in prison and pay $16.7 million in fines, back taxes and to settle a lawsuit. He also has agreed to sell the strip club at 2476 S. Industrial Road.

A statement from city spokesman David Riggleman on the Crazy Horse Too matter said city officials are waiting for official word from law enforcement on any wrongdoing by anyone at Crazy Horse Too.

"The city of Las Vegas is aware of recent news accounts regarding the possibility of a federal plea agreement connected with the Crazy Horse Too ownership," the statement said.

"The FBI has been investigating this establishment for years and has, understandably, not yet shared the evidence it has developed with the city's Business Licensing Division - their criminal prosecution does not depend upon any administrative prosecution we might undertake. When we receive evidence which would support disciplinary action against one of our licensees, we always initiate the appropriate administrative action. If a plea bargain is truly imminent, the city will then request any information that federal authorities can share with us in order to consider administrative discipline on this city of Las Vegas business license."

Freedom Park near Washington Avenue and Mojave Road plans to add an upgraded wheelchair recreation area within five years.

Las Vegas' long-term construction budget includes plans for a fenced-in paved area at the park with lighting and striping for various wheelchair games such as football and softball.