MINNEAPOLIS — The former owners of a downtown Minneapolis hotel are being sued for allegedly letting former GOP donor Anton “Tony” Lazzaro sex-traffic underage girls at his condominium inside the hotel.

The lawsuit filed in federal district court on Monday claims that the Hotel Ivy and Residences made no effort to protect the teen girls who were sex trafficked by Lazzaro at his condo on the 19th floor of the Ivy Tower in 2020. 

Lazzaro was sentenced to 21 years in prison for sex trafficking five minors ages 15 and 16 when he was 30 years old. Lazzaro paid teenagers for sex with money and gifts, according to federal prosecutors. He also would supply them with drugs and alcohol to the point many were visibly intoxicated and had to be helped leaving the hotel, according to the recent lawsuit.

Since then, the hotel has changed ownership. In a statement to WCCO, the counsel for the defendants in the lawsuit — Heartland Ivy Partners LLC, Ivy Equity Partners LLC, and Wischermann Partners, Inc.  — called the claims “meritless” and said the defendants will “vigorously defend themselves” in court. The counsel also clarified that the Hotel Ivy and Ivy Residences are “separate and distinct pieces of real estate,” and that Lazzaro’s activities occurred at his condo at the Ivy Residences, which is located in the same building as the Hotel Ivy.

Minnesota law requires all owners, managers and on-site employees of hotels in the state to take sex trafficking training annually. The training — developed by the Minnesota Department of Health in partnership with Hospitality Minnesota — includes a virtual presentation, a companion guide, a manager and owner training toolkit and a poster set. The lawsuit claims that despite this training, the staff at Hotel Ivy made no effort to protect the girls trafficked by Lazzaro. 

The front office manager testified during Lazzaro’s trial that the girls who came to see Lazzaro at his condo appeared to be “significantly younger” than 19 and looked closer to 16 or 17, according to the lawsuit. The victims allegedly were instructed to ask the hotel staff to escort them to a private elevator to access Lazzaro’s condo and would often show up late at night.

“There was a pattern of teenage girls arriving late at night to Hotel Ivy, visiting Lazzaro, and leaving a short time later intoxicated. It doesn’t take a rocket scientist to know that something sinister and criminal was occurring,” attorney Molly Burke said.

The lawsuit also claims one girl and her father informed the staff at Hotel Ivy that Lazzrro sex-trafficked teen girls and asked them to help get the girl’s sister out of his condo, but the staff said they could not do anything.

“It’s about the scope and the breadth of this problem, not just in the Twin Cities and not just at the Ivy Hotel, the scene of the crime, but across the state and across this nation,” attorney Jeff Anderson said. “It’s time for all of us to start to see, to start to watch and then do something about it — something the Ivy Hotel staff failed miserably to do.”

FBI agents raided Lazzaro’s Hotel Ivy condo in December 2020. Investigators seized nearly $400,000 in cash, along with foreign currency and bars believed to be gold. They found a GPS tracker, thumb drives, laptops, tablets and more than a dozen cellphones. Agents also confiscated his Ferrari.

The uncovering of Lazzaro’s actions led to fallout within the Minnesota Republican Party. He’d given the party about $190,000 and was connected to the then-chair, Jennifer Carnahan. There were cries for Carnahan to resign from within the Minnesota GOP. She stepped down a week after the charges against Lazzaro were unsealed.

Lazzaro’s co-defendant, Gisela Castro Medina, was sentenced to three years in prison after pleading guilty to one count of conspiracy to commit sex trafficking of minors and one count of obstruction. 

Court documents say Castro Medina recruited and brought the victims to Lazzaro’s condo. Lazzaro would then compensate Castro Medina with payments for rent, tuition, utilities and travel expenses after he had sex with them.

Note: The video above originally aired on Aug. 9, 2023.

The Hotel Ivy and its management company are being sued, accused of playing an “integral role” in a sex trafficking scheme that ended in the conviction of Anton Lazzaro.

The man federal prosecutors dubbed “Minnesota’s Jeffrey Epstein” was convicted of sex trafficking of minors in 2023. He’s currently serving a 21-year prison sentence.

RELATED: Former political donor, strategist sentenced to 21 years on sex trafficking charges

Lazzaro resided in a condo at The Hotel Ivy in downtown Minneapolis. During his two-week trial, the minor victims testified that the 33-year-old brought them to his condo and gave them cash, alcohol vapes and other items in exchange for sex.

The civil lawsuit filed in federal court late Monday afternoon accuses hotel staff of failing to intervene to stop the illegal activity, despite being trained to identify signs of sex trafficking.

The lawsuit names Heartland Ivy Partners LLC as the owner of The Hotel Ivy and Wischermann Partners as the management company at the time of the alleged conduct.

“Although the scheme Mr. Lazzaro carried out is horrendous, Plaintiff’s claims against Defendants are meritless, and they look forward to their day in Court,” said Matt McBride, an attorney representing the ownership and management groups.

Jeff Anderson, a St. Paul-based attorney who specializes in sexual abuse cases, represents the minor victim who is suing the hotel and management company.

“The red flags of danger by this powerful predator were flying,” Anderson said in a statement Monday. “Hotel Ivy ignored the flags and the signs. It chose to protect the predator.”

The lawsuit relies heavily on the testimony from Lazzaro’s criminal trial, including from a woman who worked as the front office manager at The Hotel Ivy in the summer of 2020.

The manager testified that the hotel’s front desk handled visitors for the condominium residents. According to the trial testimony, the only way to access those units was to ride a private elevator summoned by the hotel staff.

According to the lawsuit, the office manager testified that she saw girls come to visit Lazzaro during her evening shift.

During her testimony, the manager said the girls who came to see Lazzaro looked around 16 or 17 years old. She also acknowledged it would be a “red flag” to see young girls coming to or leaving the hotel residences late at night.

The lawsuit argues there were multiple occasions where staff could have intervened. Hotel staff observed one minor victim, who testified she was so intoxicated she struggled to walk through the lobby after leaving Lazzaro’s condo.

Another victim testified at the trial that she told staff at the front desk that Lazzaro was offering girls cash and other items in exchange for sex. She also asked for help getting her sister to leave Lazzaro’s condo and was told by staff they couldn’t do anything.

Anderson is expected to speak about the lawsuit Tuesday afternoon at a press conference.

For 5 EYEWITNESS NEWS complete coverage on the Tony Lazzaro case, CLICK HERE.

Minnesota Sen. Omar Fateh, DFL-Minneapolis, has thrown his hat into the Minneapolis mayor’s race, campaigning against Mayor Jacob Frey who is seeking re-election.

Fateh was the first Somali American to serve in the state senate when he was elected in 2020.

The legislator announced his campaign at Minneapolis City Hall on Monday, leaning into his experience at the Capitol, which included spearheading legislation to fund free college for low-income Minnesotans and legalizing fentanyl test strips as a tool for preventing opioid overdoses.

“Serving in the Minnesota Senate, I’ve seen firsthand what a progressive legislator can do with the right executive. And as mayor, I’ll work with the progressive city council to achieve real wins for our neighbors and uplift those who are struggling to get by,” he said.

Fateh has also, perhaps most notably, pushed for legislation that set a minimum wage and protections for Uber and Lyft drivers statewide. The law went into effect Sunday.

At the city hall event, Uber driver and community organizer Youssef Omar celebrated Fateh and the new minimum wage.

“What stands out most about Omar’s leadership is his courage to take on powerful corporate interests. He stood firm against those who sought to undervalue our drivers and their contribution,” Youssef Omar said. “Instead, he championed fairness, ensuring drivers receive the wages and protection they need to thrive, and this is the kind of leader Minneapolis deserves.”

The legislation was first vetoed by Gov. Tim Walz in 2023, after Uber threatened to pull services from Greater Minnesota and surge prices in the Twin Cities. The Minneapolis City Council followed up with its own ordinance, which Frey vetoed.

Both Frey and Walz said they supported higher pay and protections, but had reservations with the specific plans. The final deal passed toward the end of the 2024 legislative session.

In a statement Frey Campaign Spokesman Sam Schulenberg welcomed Fateh to the race and said the campaign “looks forward to presenting voters with a clear choice between two contrasting visions for the future of Minneapolis.”

“Mayor Frey’s responsible leadership has helped the city recover while making critical progress toward rebuilding the police department, leading the nation in affordable housing, and supporting workers and local businesses,” the statement continued.

It goes on to point out Fateh’s previous support for the proposed 2021 charter amendment, which would have replaced the Minneapolis Police Department with a Department of Public Safety — and predicts Fateh would be “rubber-stamping the most extreme voices on the city council.”

Fateh cast the city’s progress in a different light, particularly for workers.

“It’s getting harder and harder to build their lives here in Minneapolis, and our mayor and the status quo are failing them,” he said. He added that “nothing really changed” since George Floyd was murdered by former Minneapolis police officer Derek Chauvin, and he intends to bring “meaningful action” to that department.

The Minnesota Star Tribune also reported that the Rev. DeWayne Davis of Plymouth Congregational Church, is running for mayor and Minneapolis council Member Emily Koski has said she’s strongly considering a run. On social media, Koski announced a campaign party for Dec. 4, without specifying for which office she is running.