---
title: Vegas Strip Club Owner Sentenced to Prison for Tax Evasion
description: After years of evading taxes by paying staff under the table, a former strip club owner is facing time behind a different kind of pole - a jail cell.
---

[Tax Law Blog ](https://www.fedortax.com/blog)

# [Vegas Strip Club Owner Sentenced to Prison for Tax Evasion](https://www.fedortax.com/blog/vegas-strip-club-owner-sentenced-to-prison-for-tax-evasion)

 Written by [on behalf of Robert J. Fedor, Esq., L.L.C.](https://www.fedortax.com/blog/author/on-behalf-of-robert-j-fedor-esq-llc) | Oct 31, 2017 2:44:06 PM

In June of this year, we shared the [story](https://www.fedortax.com/blog/strip-club-owner-stripped-of-his-freedom-tax-evasion) of a Las Vegas strip club owner who was awaiting sentencing for his crimes. The former owner of Crazy Horse Too had his fate finally decided last week by a US District Chief Judge.

To recap the charges:

According to documents filed with the court, Frederick John Rizzolo, 58, of Las Vegas, the former owner of The Crazy Horse Too, evaded paying more than $1.7 million in [employment taxes](https://www.fedortax.com/Tax-Controversy-and-Tax-Litigation/Employment-Tax-Disputes.shtml) that he owed for 2000 through 2002. Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States.

Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of the Crazy Horse Too to an [offshore bank account](https://info.fedortax.com/blog/irs-after-more-offshore-accounts-records) in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo lied to an IRS collections attorney, falsely stating that he had no income or assets and no ability to pay the taxes owed.

The [sentence](https://www.justice.gov/opa/pr/former-las-vegas-strip-club-owner-sentenced-prison-evading-more-17-million-employment-taxes) handed down on Oct. 27th was as follows: 

- 24 months in prison for evading payment of more than $1.7 million in employment taxes

- 6 months of supervised release 

- Pay restitution in the amount of $2,637,290 to the IRS

Anyone who believes they might one day face allegations that they evaded taxes, failed to pay taxes or engaged in [tax fraud](https://info.fedortax.com/download-the-irs-criminal-tax-fraud-ebook) can contact tax law attorneys to discuss their circumstances and available legal options. The attorneys at [Robert J. Fedor, Esq., L.L.C.](https://info.fedortax.com/thank-you-for-contacting-us-contactuspage) represent clients across the nation who face these accusations and other serious charges.

[View full post](https://www.fedortax.com/blog/vegas-strip-club-owner-sentenced-to-prison-for-tax-evasion)

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