U.S. Marshals Seek Licenses for Topless Bar

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.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Nebraska Legislature Passes Republican's Age Verification Bill With No Votes Against It

Nebraska’s unicameral legislature has passed the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Performers in Meta Blacklisting Lawsuit Seek to Preserve Antitrust Claims

Adult Performance Artists Guild board officers Alana Evans, Kelly Pierce and Ruby have informed a California court that, although they want to drop their lawsuit claiming that Meta conspired with OnlyFans to blacklist rival premium fan platforms’ talent, they may still have antitrust claims that they may pursue in the future.

Xgen Now Shipping ZOLO's 'Stroke Off' Collection

Xgen Products is now shipping the Stroke Off collection of 11 handheld strokers and four masturbators modeled after lifelike body parts.

Nobü Unveils 'Gyrä' Vibrating Grinding Pad

Nobü has introduced the new Gyrä vibrating grinding pad.

Orion Introduces New 3-Motor Vibrator From 'Sweet Smile' Line

Orion Wholesale has debuted the new three-motor RC G- & P-Spot Vibrator from its Sweet Smile line.

C1R Debuts 'Vers' Suction Dildo, Butt Plug

C1R has introduced its new Vers liquid silicone suction dildo and butt plug.

FSC, Co-Plaintiffs to Ask US Supreme Court to Review Constitutionality of Texas Age Verification Law

Free Speech Coalition (FSC) and its co-plaintiffs in the challenge to Texas’ controversial age verification law have filed a petition before the United States Court of Appeals for the 5th Circuit asking to stay its recent upholding the law because they intend to appeal to the U.S. Supreme Court to review the law’s constitutionality.

Blush Erotica, The Kinky Candle Company Partner for Branded Candle

Blush Erotica has partnered with The Kinky Candle Company for an official branded candle.

FSC Vows to Fight Florida Age Verification Law

Free Speech Coalition (FSC) issued a statement vowing to continue fighting Florida’s age verification law, which was signed by Gov. Ron DeSantis on Monday as part of a comprehensive bill targeting minors’ use of social media.

Kansas Republican Aims to Create New Bureaucracy to 'Investigate' Porn Websites

Republican state legislators succeeded Monday in moving forward Kansas’ version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, despite serious concerns raised by House Democrats about the cost of establishing a new bureaucracy tasked with investigating websites for pornographic content.

Show More