DANCE PERMIT:

Feds seek license to operate topless bar

Agency wants to reopen Crazy Horse Too

Friday, Oct. 31, 2008 | 10:38 a.m.

In an about face, the U.S. Marshals Service says it now wants to apply for an exotic dance permit and liquor license from the city to operate the Crazy Horse Too.

The change in attitude comes as the value of the Crazy Horse Too has plummeted by millions of dollars since the Marshals Service allowed the liquor license to lapse June 30 without finding a buyer to run the topless club.

At the time, U.S. District Judge Philip Pro criticized the Marshals Service for not applying for a liquor license to take over the club in the absence of a buyer to retain the value of the property. The Marshals Service said at the time it did not want to get into the topless club business.

The strategy to run the Crazy Horse Too also comes as a California Bank has filed court papers asking Pro to lift a stay prohibiting the bank from foreclosing on the government-seized strip club to satisfy a $5 million loan it made to former owner Rick Rizzolo.

Security Pacific Bank told Pro the value of the Crazy Horse Too declined from roughly $30 million to $4.6 million under the marshals' control.

In court papers Thursday, the government disputed that appraisal, saying its own appraisal has put the property's value at $7 million without a liquor license and $11 million with a license. And that does not include any potential business income, the government said.

The government seized the Crazy Horse Too in September 2007 after Rizzolo failed to sell the club on his own as part of a deal to resolve a criminal case with the government. Rizzolo pleaded guilty to tax evasion and spent roughly 10 months in prison.

The Marshals Service has been trying to sell the club so that Rizzolo can pay off some $29 million in debts associated with the property. Rizzolo owes the government millions of dollars in fines and back taxes, as well as $9 million to a Kansas City area man who was let paralyzed following a 2001 fight at the Crazy Horse too.

In its court papers, the government said the marshals have hired a private law firm that specializes in land use issues to help it persuade the city to give it a liquor license to run the club.

There is some precedence for the government to get involved in the adult business. In the early 1990s, the government operated the Mustang Ranch briefly after it was seized by the IRS.

The government also ran the Bicycle Club, a Southern California card club seized in a drug trafficking case, in the 1990s.

Discussion: 10 comments so far…

By KDR81

10/31/08 at 10:48 a.m.

Suggest removal

END RICO, end the drug war. We can stop stupid government dignbats from destroying wealth like this.
By revtomperl

10/31/08 at 11:03 p.m.

Suggest removal

Maybe Cain and McPalin could run it. Then they won't need unemployment insurance!
By dbltrbl

11/1/08 at 2:44 a.m.

Suggest removal

Don't forget Rizzolo doesn't escape interest continually accumulating on those owed millions.... If the fed can reopen it, T&A pays....very well.

I remember laughing when "Uncle" began running the Mustang.....they had to keep past employee management to bring them up to date on what was on the "menu." Joe Conforte is another piece of our rich history.
By vegasj

11/1/08 at 4:17 a.m.

Suggest removal

Vegas looks more and more like a dump, tear the building down and open a church there. A real one, not a "get married" one. All the sinners need a place close to the strip where they can repent. Or turn it into a shelter for reforming prostitutes brought up in this hell city.
By lisa80268

11/1/08 at 4:33 a.m.

Suggest removal

Just what we need-- more strip clubs.... yawn...

When was the last time Vegas actually had a NEW idea?
By johnevegas

11/1/08 at 5:48 a.m.

Suggest removal

"All the sinners need a place close to the strip where they can repent."

We already have one. It's called Utah.

"Or turn it into a shelter for reforming prostitutes brought up in this hell city."

And you live here because???
By torklugnutz

11/1/08 at 11:16 a.m.

Suggest removal

Let's not forget that this club was seized under The Patriot Act. I'm sure this all makes us a lot safer from terrorists.

http://www.lvrj.com/news/9531307.html
By neiman1

11/1/08 at 8:58 p.m.

Suggest removal

Seizing the place made sense. Not appointing a group to run it while the case was made was stupid. But like everything else, "I'm from the government and I'm here to help you". I can't wait until the government runs my health care. WoW.
By Lenny_V

11/2/08 at 1:31 a.m.

Suggest removal

In the meantime Rizzolo has Barrier murdered right under their noses and the government (local and federal) lackeys stand by pretending to do "justice".
By ucantbeserious

11/2/08 at 5:35 a.m.

Suggest removal

Let's see if I have this straight...
The gov't locks up the owner because its not getting its perceived fair share of the T&A business.

So they lock up the owner, thanks to the dim whitted sheepish population of Nevada, then

The gov't keeps the business, and is AGAIN in the prostitution business (after the Mustang),

And these are the same double standard moron prosecutors, (who want to be politicians) that ruin the lives of the everyday guy so they can save us from crime?

They are so deep in the same businesses the Mafia started now that you can't tell the two apart anymore.

Oh yeah, don't forget the retards that make up juries who eat the gov't stories up during trials and believe the gov't doesn't lie, cheat & steal.