Bachman/Northwest Highway Community Association

NW Topless Clubs Paid Lipscomb

Dallas Morning News Article

01/28/2000

By Michael Saul / The Dallas Morning News

The owner of a Dallas topless club allegedly paid Dallas City Council member Al Lipscomb four "bribes and gratuities" totaling $7,700, according to a court document filed Thursday.

The payments allegedly were made in exchange for Mr. Lipscomb's intervention with a top Dallas Police Department official to end what the club owner regarded as unfair police enforcement of the city code, according to the document.

U.S. District Judge Joe Kendall cited the alleged payments from Caligula XXI owner Nick Rizos in an order scheduling a Feb. 8 hearing to determine whether Mr. Lipscomb should remain free while awaiting sentencing on his federal public-corruption conviction.

Mr. Lipscomb said Thursday that he had not read the judge's order and "was in the process of trying to call my attorney." He declined to comment further.

Mr. Rizos' attorney, Bill Roberts, said his client was in Greece attending to his ill mother and could not be reached for comment. Mr. Roberts said Mr. Rizos did give Mr. Lipscomb money but that the payments were not bribes.

Mr. Roberts said Mr. Rizos went to Mr. Lipscomb for help, received that help and "wanted to express his gratitude." Mr. Roberts said Mr. Lipscomb did not solicit the money.

On Tuesday, a federal jury in Amarillo found Mr. Lipscomb guilty of 65 counts of conspiracy and bribery. The jury concluded that he accepted $1,000 monthly payments and other gifts from Yellow Cab Co. owner Floyd Richards in exchange for voting in the company's favor on taxi-related issues.

Mr. Lipscomb, who continues to maintain his innocence, said he would appeal the jury's verdict and hoped to remain on the council during the appeals process.

Judge Kendall issued an order Thursday scheduling Mr. Lipscomb's sentencing hearing April 10.

In a separate order, also filed Thursday, Judge Kendall scheduled the Feb. 8 hearing to determine whether Mr. Lipscomb should remain free while he awaits sentencing. The judge wrote that he was concerned that Mr. Lipscomb's continued service on the City Council might create a "danger to the community."

"Economic danger to the community has been held to require detention," Judge Kendall wrote. "The open question before the court is whether or not under the statute and existing precedent an elected official convicted of taking bribes and receiving gratuities continuing to serve as an elected official violates the release statute."

Judge Kendall wrote that he was especially concerned about Mr. Lipscomb's continued council service in light of accusations that he accepted bribes from Mr. Rizos in 1992. Mr. Lipscomb, according to the document, also may have assisted Mr. Rizos in the spring of 1993 in obtaining the renewal of his business license.

Tom Melsheimer, a member of Mr. Lipscomb's defense team, called the allegation involving Mr. Rizos suspect because the government chose not to bring it up during Mr. Lipscomb's trial.

"The government is neither shy nor conservative about making allegations against someone at trial," Mr. Melsheimer said. "If they believe it to be true, they would have used it to cross-examine him."

U.S. Attorney Paul Coggins said prosecutors made a "strategic decision" not to use the bribery allegations involving Mr. Rizos at trial. That should not be interpreted as a lack of confidence, Mr. Coggins said, because he and his prosecutors consider the allegation true.

As to whether Mr. Lipscomb should resign, Mr. Melsheimer said he didn't understand why his client's continued council service should jeopardize his ability to remain free while awaiting sentencing.

"He is legally entitled to remain on the council until his conviction is final," Mr. Melsheimer said. "I don't see how his exercising his legal right could be the basis for changing a person's bond status."

Under state law, individuals are eligible to hold public office until "final conviction" for a felony. In the federal court system, a conviction typically becomes final after a defendant has lost appeals to a circuit court of appeals and the U.S. Supreme Court.

Mr. Lipscomb has said he looked forward to continuing to serve but would abide by Judge Kendall's wishes and follow his attorneys' advice.

When the judge accepted the jury's verdict Tuesday, he said he was concerned about Mr. Lipscomb's continued service but did not order or ask Mr. Lipscomb to resign.

At the time, the government did not object to Mr. Lipscomb's remaining free while he awaited sentencing. Assistant U.S. Attorney Michael Uhl, the lead prosecutor, did say outside the courthouse that he hoped Mr. Lipscomb would resign his seat immediately.

The Rizos bribery allegations involve problems the club owner was having with police canvassing his parking lot during the early 1990s, the document states.

Mr. Rizos "had a problem with police officers coming into the Caligula business on almost a daily basis and doing vehicle checks," Mr. Roberts said. "He went to Mr. Lipscomb and told him about his problem. Mr. Lipscomb did ask a police officer to come in and talk to him [Mr. Rizos]."

After the officer talked to Mr. Rizos, his attorney said, the problem subsided. He said Mr. Lipscomb never solicited any money from Mr. Rizos; instead, Mr. Rizos decided to give the council member the money as a way of saying thanks.

"He on two occasions gave Mr. Lipscomb envelopes in which there was cash," Mr. Roberts said. "He comes from Greece. He thought this was expected. He thought this is how business is done.

"Mr. Rizos understands [now] it shouldn't have happened. We don't give public officials money."

Mr. Roberts said his client estimated the payments at $6,000, about $1,700 less than the government alleged. Mr. Roberts said the payments had nothing to do with the renewal of Caligula's license.

Mr. Rizos' wife, Dawn Rizos, was interviewed by federal investigators and subpoenaed as a witness in Mr. Lipscomb's trial. She once gave Mr. Lipscomb a $1,000 check as a campaign contribution. Prosecutors never called her or her husband to the stand.

"They were being nasty. You know how the FBI is," said Ms. Rizos, referring to her interview with federal investigators. "They wanted something that would make Al look bad, that he had taken something for a favor."

Ms. Rizos described Mr. Lipscomb as a "sweet old man."

"He never did anything to hurt anybody," she said.

The judge's order, which discusses the allegations involving Mr. Rizos, does not identify the police official whom Mr. Lipscomb contacted. Mr. Roberts said his client did not remember the official.

Dallas Police Chief Terrell Bolton testified before the federal grand jury that heard Mr. Lipscomb's case, and prosecutors placed him on their witness list. Police officials declined to comment Thursday.

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