Man jailed in extortion bid against candidate - News

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Jul. 24, 2008
Copyright © Las Vegas Review-Journal

Man jailed in extortion bid against candidate

By DAVID KIHARA and MOLLY BALL
REVIEW-JOURNAL

Michael Zahara
Former state Democratic Party official accused of targeting mortgage banker

A campaign consultant and former Nevada Democratic Party official was arrested this week on charges he tried to extort a former Assembly candidate.

Las Vegas police arrested Michael Zahara, 47, Tuesday on one count of felony extortion. He is accused of trying to shake down Sanje Sedera, who ran for Assembly District 2 briefly before pulling out in May to help with the cyclone relief effort in Myanmar.

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Zahara was a member of the executive board of the Nevada Democratic Party. He declined to run for another term in May.

Zahara's credentials to the state Democratic convention were revoked after he threatened other delegates, according to a party official who spoke on condition of anonymity. Hotel security was instructed not to allow him to attend the party meeting taking place at the Grand Sierra Resort in Reno in May.

Authorities said Zahara threatened to tell people that Sedera committed IRS and mortgage fraud, among other things, unless Sedera paid him $5,250.

Zahara also accused Sedera, who is originally from Sri Lanka, of being involved in "terrorist rebel activity," according to a Las Vegas police report.

Sedera, who hired Zahara as a campaign consultant in February, said the accusations are baseless. "I wish I didn't meet him (Zahara). Unfortunately I did," said Sedera.

Zahara remained behind bars in the county jail on Wednesday on $3,000 bail. He is scheduled to appear in court this morning.

Sedera first met Zahara at a Nevada Democratic Party event in January at the Sahara Library, the police report said. In February, Sedera met with Zahara at a local Claim Jumper restaurant to discuss hiring Zahara as a campaign consultant. At the meeting, Sedera agreed to pay Zahara a $7,500 retainer fee and $1,500 a month until the August primary to work as his campaign consultant.

At the time, Sedera said he was new to politics and naive. When he mentioned he hired Zahara, other party members shook their heads and asked, "Oh, why him?" he said.

In May, Sedera announced that he wasn't running for Assembly District 2 because he wanted to help out with the relief effort in Myanmar. Cyclone Nargis swept through Myanmar on May 2 and 3 and may have killed upwards of 130,000 people.

Sedera, who has worked as a mortgage banker and broker since 1996 in Las Vegas, announced that he would hold two political fundraisers before he dropped out but would donate all the proceeds to the relief effort. He also cut Zahara a final check for $750.

But Zahara wanted more money, according to a Las Vegas police report. On May 15, Zahara sent Sedera a notarized letter threatening to expose Sedera as a scamster involved in mortgage fraud. Sedera said a copy of the letter was taped to his front door and his parents had found it.

Zahara stated in the letter that he was prepared to tell Sedera's family, business associates and church members of his alleged misconduct and wrote that he would ask the IRS to audit him and the FBI to investigate him, the police report stated.

Zahara also threatened to write a story about the accusations and send it to the Review-Journal. The Review-Journal has previously published commentary by Zahara criticizing the Democratic county convention and he frequently writes to the letters to the editor section on political topics.

Zahara stated that he would "transfer all the materials he owns to Sedera free and clear" once he received $5,250, the report stated.

The same day he received the letter, Sedera went to Las Vegas police. Police began investigating the allegations and interviewed, among other people, a woman at a local UPS Store who notarized Zahara's letter to Sedera.

After viewing a photo of Zahara, the woman confirmed Zahara had the letter notarized.

Contact reporter David Kihara at dkihara@reviewjournal.com or 702-380-1039. Contact reporter Molly Ball at mball@reviewjournal.com or 702-387-2919.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Johnathan L. Abbinett wrote on July 25, 2008 12:18 PM: I've known Mike Zahara for years, we met "in the field" and he WAS one of the best - until a couple of years ago - then the downward spiral of addiction began...it's so sad, Sad, SAD! Many of us tried to intevene and get him into therapy - but, to no avail, because Mike just wouldn't listen to anyone any longer - he became a loose cannon and simply lost control. That's what we do in the Democratic Party when one of members is in need of help - we try to help in any way we can - sadly, Zahara would not listen to any voice of reason. Now Zahara's brought the ultimate shame and dishonor on him self, and only by former association, to all of us - but, in all fairness, Zahara was just one bad apple in the barrel - and he has long ago been, rightfully, cast out for his dishonorable behavior! It's heartbreaking...but, don't let anyone tell you he's representive of the thousands of honest, hard-working Democratic volunteers and members of the Central Committee - he is NOT! As for the candidate - he's being truthful, I know the facts, and he simply made a naive decision without knowing enough facts - he's much wiser now, and a wonderful guy! I hope Zahara gets the counseling and therapy he needs and successfully moves on elsewhere - he's done in Nevada! enjoyingit wrote on July 24, 2008 01:10 PM: Wow, The dems are pissed that their own kind jumped ship and is telling the truth. Terroist for democratic office, and now do you think the New Yorker is satire? it's showing the truth or is it? Come on down and bash my opinion, your facts are incomplete so far. This guy writes to the R.J. and the R.J. gets blamed, but neff writes non-facts and is a saint to them. Wake up Dems your partys middle name is jihad (Dejihadmcrats). RJ keep printing his Truth. danny wrote on July 24, 2008 01:02 PM: what a funny story, it got a little tongue twisted "sedera, zahara, sahara" lol andrew wrote on July 24, 2008 10:29 AM: This man is a creep. It's about time someone took the courage to get him out of the public. He claims to be an democratic activist, but he has done more harm to Democratic Party by his antics. I am so suprised why did the democratic party tolerate his conduct for this many years.Who elected this idiot to be an executive member of the state democratic party? He should have been canned from the party few years ago. Zahara has nothing to offer to anyone! He is a pathetic individual who is a disgrace to the entire democratic party. Judy wrote on July 24, 2008 10:12 AM: I hope this guy leaves town after he is released from County Jail. I am sick of all of his dribble. LMAO wrote on July 24, 2008 09:01 AM: I am busting up here! I met this guy a few times...cwazy is the only thing I can think of to describe him. I am completely NOT surprised by this story. Further, the fact that he was a Democratic operative for so long is very telling of why the NV State and County Dems have been running a sinking ship for so long. No organization, few qualified workers, and no vision. the only thing keeping the NV dems afloat are a few under appreciated and overworked people who keep the ship afloat. Dem wrote on July 24, 2008 02:52 AM: And the R-J let this guy write a special to to the paper back in FEB! You love this guy editorial board of the R-J (besides NEFF). I guess you should be fined for libel for letting him publish his lies about the democratic party hey? R-J Journalism!