Reporter Steve Crupi said the federal government is planning to sell the club and use the money to pay millions of dollars to the victims of violence at the Crazy Horse. Federal prosecutors claimed the club routinely over-billed customers, and those who refused to pay allegedly were threatened and beaten up until they paid up.
Rizzolo currently is in federal prison for tax evasion and racketeering. Part of his plea deal called for the club to be sold with the proceeds going to victims of violence at the Crazy Horse, but the club was never sold.
The club has been shut down and the federal government is looking for a qualified buyer.
"The document actually says the whole shopping center has been taken over by the federal government," said Buffalo Jim Barrier, who owns the auto shop next door.
In the foreclosure notice, the government lists three potential buyers for the Crazy Horse, but no deal has been finalized.
