Former Crazy Horse owner sentenced for evading employment taxes - FOX5 Vegas - KVVU

Former Crazy Horse owner sentenced for evading employment taxes

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A gavel is shown on a sound block in an undated image. (File) A gavel is shown on a sound block in an undated image. (File)
LAS VEGAS (FOX5) -

The former owner of The Crazy Horse Too, in Las Vegas, was sentenced Friday for evading employment taxes. 

A judge sentenced Frederick John Rizzolo to 24 months in prison for evading more than $1.7 million in employment taxes. 

Rizzolo pleaded guilty in June to attempt to evade and defeat the payment of employment taxes owed from 2000 through 2002. 

According to court documents, Rizzolo paid floormen, bouncers, bartenders and shift manager at The Crazy Horse Too in cash and did not provide accurate records of payments to the club's bookkeepers. This lead to false employment tax returns to be filed with the Internal Revenue Service, which underreported wages paid and taxes due. 

Rizzolo pleaded guilty to conspiring to defraud the United States in 2006. However, Rizzolo took steps to stop the IRS from collecting delinquent taxes. Court records showed Rizzolo directed $900,000 that he received from the sale of The Crazy Horse in Philadelphia to an offshore account. He also withdrew $50,000 from an account and wrote a check to a third party who would return the money back to him. Additionally, Rizzolo falsely told the IRS he had no income or assets and no ability to pay the taxes he owed.  

In addition to the prison term, a judge ordered Rizzolo to serve six months of supervised release and pay restitution of more than $2.6 million to the IRS. 

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