Home > News > U.S. Marshals Seek Licenses for Topless Bar • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

U.S. Marshals Seek Licenses for Topless Bar

U.S. Marshals Seek Licenses for Topless Bar
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.66%
Yes, but in a few years
  36.87%
No
  23.46%
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
Oct 31, 2008 1:00 PM PDT    Text size: 
LAS VEGAS — The U.S. Marshals Service has reversed itself and now wants to apply for an exotic dance permit and liquor license from Las Vegas to operate the Crazy Horse Too strip club, which it has owned for more than a year.

The federal government took over the property in August 2007 after owner Rick Rizzolo failed to find a buyer. Rizzolo pleaded guilty to tax evasion charges in 2006 and his plea agreement called for him to serve a one-year prison sentence and sell the club, using the proceeds to pay Kirk Henry $10 million from the sale. Henry was left paralyzed after he was beaten by club employees after arguing about his drink tab in 2001.

The resale value of the club has dropped substantially since the Marshals Service allowed the liquor license to lapse June 30 after unsuccessfully looking for a buyer to run the topless club.

At that 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, to which the Marshals Service said it did not want to get into the topless club business.

Security Pacific Bank in California 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 Rizzolo, claiming that the value of the club has declined from roughly $30 million to $4.6 million.

The government has disputed that appraisal, saying the property is worth $7 million without a liquor license and $11 million with a license. And, the government said, that does not include any potential business income.

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. Besides the $10 million to Henry, Rizzolo owes the government millions of dollars in fines and back taxes.

The Marshal Service has hired a private law firm that specializes in land use issues to help persuade the city to grant a liquor license to run the club.

There have been government-run adult businesses before: In the 1990s, the government briefly operated the Mustang Ranch brothel after it was seized by the IRS and also ran the Bicycle Club, a Southern California card club seized in a drug trafficking case.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

BUSINESS ANALYSIS

Breaking the Fourth Wall: VR Production Tactics, Techniques

The tech world has long seen the cyclic debut of fabulous (and fabulously expensive) products, which initially wowed pundits and early adopters, but were left antiquated with the next round of releases. Virtual... More »

Retailers, Distributors Report Growth in Male Sex Toys Market

Adult retail has been undergoing a transformation in recent years. The adult stores of the 1990s and 2000s focused heavily on porn video sales and catered to a predominantly male clientele, but these days,... More »

VR Hardware: The Foundation of Immersive Technology

From cameras to headsets to controllers, software and more, virtual reality technology is more than the VR content experience itself — it also surrounds the tools that are needed to create and consume... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

XBIZ.net Paysite Meetup

Jul 13 - Jul 13
Barcelona, Spain

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport

QWEBEC Expo

Aug 03 - Aug 06
Montreal, Quebec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!