Vegas Strip Club Owner Gets Prison for Evading $1.7M Employment Taxes

The former owner of the Crazy Horse Too strip club will serve two years in prison for evading to pay more than $1.7 million in employment taxes, the Office of the U.S. Attorney for the District of Nevada has announced.

District Court Judge Gloria M. Navarro ordered Frederick John Rizzolo, 58, of Las Vegas, to serve an additional six months of supervised release and to pay more than $2.6 million to the IRS.

According to documents filed in U.S. District Court, Rizzolo failed to pay the taxes from 2000 to 2001. He pled guilty in June.

He paid club employees in cash, and failed to provide accurate records to the business's bookkeepers, causing false employment tax returns to be filed with the IRS, officials said.

Rizzolo is 2006 pled guilty to conspiring to defraud the federal government, but following that plea, he took steps to conceal his assets, which thwarted efforts by the IRS to collect delinquent taxes, officials said.

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