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Knappster: Cases against two strip club moguls a study in contrasts

By George Knapp

It's occurred to more than a few locals that the long-anticipated criminal case against topless club owner Rick Rizzolo seems to be bogged down. Compare it, for example, to its higher-profile counterpart, the political corruption probe centered on the business empire of rival topless mogul Mike Galardi.

Galardi's clubs were raided by the FBI in May. Within two months, the feds had secured a felony confession out of Galardi, indictments were handed down against politicians in San Diego and further indictments were pending against Las Vegas politicos. Overall, things moved pretty fast. So what does that say about the Rizzolo matter?

Dozens of Las Vegans have been receiving little notices of late, greetings from the Department of Justice to explain that they were picked up on federal wiretaps, presumably speaking to Rizzolo, the owner of the Crazy Horse Too. The FBI has been listening to Rizzolo's conversations since 1996. Rizzolo's camp has acknowledged that the most recent wiretap notices to go out in the mail demonstrate that the feds were also listening in 2001, 2002 and 2003. Agents not only listened to hundreds of conversations, but they staged a huge raid on Rizzolo's club back in February. They seized boxes of records, piles of money, files, computers and maybe, just maybe, a camera that was hidden in the roof of the club. That was more than eight months ago.

I'm sure Rizzolo isn't eager to be indicted, so he's not going to ask the feds to please hurry up, but he certainly must be curious what's taking so long. Sources close to the case say Rizzolo's lawyers have taken the offensive. Among the motions they've filed is a sealed demand that the government show its cards. The Crazy Horse lawyers think the investigation has been carried on in secrecy long enough, and considering how many local people--including some well-known names--have been picked up on wiretaps, perhaps it's time to find out if this is more than a G-man fishing expedition.

Whether a federal judge allows Rizzolo's team to get a peek at the government's case remains to be seen. Certainly, with all the publicity surrounding the case, the cat is out of the bag about hidden microphones, and if people didn't know before that Rizzolo's phones were tapped, they certainly know now.

On another front, sources say, the Rizzolo team has prompted a DOJ review of the actions of FBI agents who raided the Crazy Horse. Keep in mind that some Washington big shots already harbor doubts about local operations because of what's been happening in the Galardi case. (Recall the story here a few weeks ago that 15 or more FBI agents were allegedly customers at Galardi's clubs.) Add to that the charges leveled by Rizzolo's team about so-called heavy-handed tactics during the raid on the Horse. Lawyers are hoping the DOJ will send its own agents to investigate what went down the morning of the raid. Top it off with the lawsuit filed by Rizzolo against the Metro cops who staged an earlier raid on the club, and it becomes clear the club owner is getting a bit testy about this pattern of constant scrutiny--under way since 1996, at least but yet to result in any charges.

As for the names of some of those who were overheard by government taps, I can't wait to tell you.

Mr. Spilotro, meet

Mr. Rosenthal

Readers of this space may recall the story several weeks ago about the sale of Frank "Lefty" Rosenthal's former home at the Las Vegas Country Club. The classic Vegas pad was purchased, as it turns out, by a friend of the Spilotro family. Tony Spilotro, as everyone knows, was a lifelong pal and business associate of Lefty's back during the mob's heyday here. Their friendship was portrayed in the hit film Casino.

The way we hear it, another Rosenthal/Spilotro friendship may have been spawned as a result of publicity about the sale of the house. No one will talk about this on the record, but Knappster has been told that Steven Rosenthal, Lefty's son, showed up at the house and introduced himself to Vincent Spilotro, Tony's offspring. You've got to figure that these two guys would have plenty in common and probably could write one hell of a book if they decided to compare notes. (According to local scuttlebutt, Steve Rosenthal left home when he was 17 years old in the belief that his old man hated him. Vince Spilotro, on the other hand, worshipped the ground his father walked on and stood behind the feared underworld figure until Tony was murdered in 1986.)

Names and places

Say, was that former county commissioner Erin Kenny partying in the stands during game six of the Chicago-Florida baseball playoff series? Sharp-eyed county employees say a woman who looked exactly like Kenny was spotted by TV cameras during an audience cutaway in the bottom of the ninth inning. The woman on camera was dancing and cheering and trying to rally the Cubs. (Anyone out there who taped the game should take a peek.) Kenny lived in Chicago before moving to Las Vegas to make her fortune, so it's entirely possible she had a rooting interest in how the Cubs fared in that series. Both Kenny and the Cubs have seen their last game for a while. ... Wow, if you thought the story about former Education Secretary William Bennett's gambling habit was a shocker, you should hear the other story making the rounds in Las Vegas about the morality crusader. A couple of tabloid types are chasing potential leads but have been unable to nail it down just yet. ... Also this Saturday, friends of the late Joe Travis will gather in Rachel, Nev., at the Little A'Le'Inn for a benefit auction and costume ball. Travis and his wife, Pat, built the Inn into a world-renowned attraction because of its proximity to the secret Area 51 military base. When he died several weeks ago, Joe left behind a pile of medical bills, but no insurance. The auction is designed to help the family pay off some of its humongous debts. Besides being for a good cause, the people in Rachel do know how to party.