Former Strip Club Owner Rick Rizzolo Charged With Felony Tax Evasion

           LAS VEGAS, Nev. – Former Las Vegas strip club owner Rick Rizzolo was indicted by the federal grand jury today on charges that he attempted to evade over $2.5 million in employment and income taxes, announced Daniel G. Bogden, United States Attorney for the District of Nevada. 

            Rizzolo is charged with two counts of attempt to evade and defeat the payment of tax.  Special Agents with IRS Criminal Investigation arrested him this afternoon, and he will be scheduled for an initial appearance and arraignment before a United States Magistrate Judge tomorrow.   If convicted, Rizzolo faces up to five years in prison and up to a $250,000 fine on each count.

The indictment alleges that beginning on about June 28, 2006, and continuing to May 31, 2011, Rizzolo allegedly attempted to evade the payment of approximately $1.7 million in employment taxes that he owed for 2000 to 2002, and $861,075 in income taxes he owed for 2006, by concealing and attempting to conceal from the IRS the nature, extent and location of his assets, by making false statements to IRS employees, and by placing funds and property in the names of nominees and beyond the reach of process. 

The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Sarah E. Griswold. 

            The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.