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FEDERAL SECURITIES LAWS: Judicial candidate accused

SEC alleges Landess helped set up illegal stock scheme




A candidate running for embattled District Judge Elizabeth Halverson's seat is facing a complaint brought by the Securities and Exchange Commission that alleges he helped set up an improper stock scheme that netted him and six others $3.91 million.

The SEC complaint accuses attorney Jason Landess, 62, and two Las Vegas residents of giving control of a Nevada company to a Texas attorney who orchestrated a "reverse merger" with a software company. A reverse merger is the acquisition of a public company by a private company, which allows the private company to bypass the lengthy process of going public.


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  • The complaint said the activities began in 2005.

    For arranging the reverse merger, Landess and the other men got a percentage of stocks, the complaint said.

    Landess is accused by the SEC of violating the Securities Act by selling stocks that were not properly registered in connection with the merger.

    The Texas attorney, Robert Sonfield, is accused by the SEC of violating anti-fraud provisions of federal securities laws.

    Landess denied any wrongdoing and said he will file a motion to dismiss the complaint against him. Landess downplayed his role in the complaint, saying it puts him in a bad light by lumping him in with the larger fraud scheme when he is only being accused of a technical registration violation.

    "I feel very confident that the claim against me will be dismissed," Landess said.

    Landess said he received the stocks in question as payment for legal services. He said he consulted a securities expert who advised him that the stocks could be sold without registration.

    Landess is running for the judge's seat held by Halverson, who did not make it through the August primary. Halverson is facing a Nevada Judicial Discipline Commission complaint accusing her of creating a hostile work environment and not doing her job properly. Halverson received less than 10 percent of the primary vote.

    Landess garnered 30 percent of the primary vote and is up against Family Court Judge Stefany Miley in the general election for Department 23. Miley, who is endorsed by the Police Protective Association and the Clark County Prosecutors Association, earned nearly 60 percent of the primary vote.

    Landess, a graduate of Loyola Law School in Los Angeles who at one time was a prosecutor in Orange County, lost more than $2 million while playing blackjack in 1994 and was sued by several casinos for unpaid markers. Landess filed for bankruptcy and said he no longer gambles.

    The SEC complaint against Landess was made public at the end of July. It said that Landess and Las Vegas residents Donald Bradley and son Jeffrey Bradley gave control of a shell company called Kilis, Inc. to Houston attorney Sonfield, 76, and got 10 percent of the stocks.

    Sonfield and two British men engineered a reverse merger with a software company called Exobox, the complaint said. Sonfield submitted public filings with the SEC.

    According to the complaint, Sonfield left out information that he and the two British men controlled almost all of the company's "public float," a violation of federal anti-fraud laws. Public float refers to company shares held by public investors.

    In a news release, the SEC said that Exobox and its officers and directors did nothing wrong.

    Contact reporter David Kihara at dkihara@reviewjournal.com or 702-380-1039.

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    Report abuse

    JustTheFacts wrote on September 05, 2008 06:35 PM:




    SEC Action Alleges Registration and Anti-Fraud Violations by Six Individudals

    U.S. SECURITIES AND EXCHANGE COMMISSION
    Litigation Release No. 20665 / July 31, 2008
    Securities and Exchange Commission v. Robert L. Sonfield, Donald C. Bradley, Jeffrey W. Bradley, Jason Landess, Marc Lane and Roger Brewer, Defendants, and Alexanderia K. Blankenship, Relief Defendant, Civil Action No. 4:08-cv-02351, (S.D. Texas, Houston Division) (July 29, 2008)


    http://www.sec.gov/litigation/litreleases/2008/lr20665.htm

    And to think this guy is a boy scott compared to Mosley. Obviously the RJ endorsed what they felt was the lessor of three evils. Miley dodged a bullet this time. Imagine what else is "sealed" from public review.




    Report abuse

    local council wrote on September 05, 2008 06:23 PM: Lana, Attorneys already know his net worth and how much they can squeeze out of him. They will bill accordingly. Basically, they are licking their chops.


    Report abuse

    LANA wrote on September 05, 2008 05:56 PM: Well, Landess will be facing a US Judge in Texas. The complaint is on the Internet. Texas jury pools can be tuff.

    I wonder what it is like when attorneys get there's.

    I hope his attorney uses the standard hourly billable rip off rate. You know, when they read the same letter five times and bill you for it. When they show up in court with extra council that takes a nap on your dime..... Bend over Landess and see how it feels.


    Report abuse

    Don't Miss This One wrote on September 05, 2008 04:51 PM:
    http://www.lvrj.com/news/19245844.html

    During a spree at the blackjack tables in 1994, Landess won and promptly lost more than $2 million, betting as much as $10,000 a hand. Several casinos sued him for unpaid markers, debts he would never repay after filing for bankruptcy.

    Landess argues that he is the most seasoned and skilled litigator in the race, but he also carries baggage: past gambling debts that today likely would have resulted in criminal prosecution, and attempts to influence prosecutors and judges to save his son from prison.

    Landess was dragged into civil court but found a way to wriggle out of trouble, according to court records and comments by Landess.

    Though by his own account he was making $500,000 a year as a partner in the law offices of K. Michael Leavitt, Landess filed for bankruptcy to avoid his debts.

    In the civil case against Landess, an attorney for the Rio in a court motion argued that Landess' wages should be garnished "before Mr. Landess can dispose of them, or otherwise convert them to exempt or judgment-proof assets...

    In 2003, Landess was back in court, this time for a meeting in chambers with Judge Donald Mosley, a longtime friend and the judge presiding over one of several felony cases against Landess' son, a methamphetamine addict and car thief...

    In a later case against Justin Landess, District Judge Donald Mosley invited Jason Landess and the attorneys of record to his chambers, according to court records.

    Mosley, who in a phone interview referred to Landess' son as "little Justin," had known the Landess family for years. At the meeting in chambers, the judge wanted to know if his relationship with Jason Landess was a problem for either attorney. Neither said it was.

    The case records show Mosley later sentenced Justin Landess to a suspended prison sentence on another felony guilty plea stemming


    Report abuse

    LV Barrister wrote on September 05, 2008 04:22 PM: Don wrote on September 05, 2008 10:26 AM:

    "Here we go, RJ trying to make sure Miley gets elected by running the negative about Landess..."

    I don't agree with this proposition:

    RJ ENDORSED Landess in primary:

    http://www.lvrj.com/opinion/26171929.html

    "Jason Landess is the best choice for District Court, Department 23."

    and ran previous story about Miley's sealed lawsuit.

    http://www.lvrj.com/news/21762509.html

    "ONCE SEALED FROM PUBLIC VIEW: Open case unopposed

    Judge orders secrecy lifted in lawsuit

    By FRANK GEARY
    REVIEW-JOURNAL

    Family Court Judge Stefany Miley, who is running for District Court, on Wednesday didn't oppose a judge's order unsealing a malpractice lawsuit against her law firm. But Miley hasn't explained why the firm wanted the case sealed from public view two years ago."


    Report abuse

    tmosley wrote on September 05, 2008 03:48 PM: With Liberty and Justice for All; I couldn't have said it better. I not only can imagine the atrocities that occur within the Nevada Court System, I've been living it for 15 years. From the clerks office to the Supreme Court. If any of those judges, (and they know who they are) believe I can be silenced with threats or the legal injustice which occurs for me, they fail to consider the mindset when a victim has little left to lose.

    Even if the only issues remaining are a need for justice and the truth, there are many who will sign up.

    One might say, "he who laughs last, laughs best", but this situation is not funny. Too many innocent people with the misfortune to not have a membership in this "good ol boy" circle, have been devastated as a result. I am ashamed to ever have belonged to this club.


    Report abuse

    With Liberty and Justice for All wrote on September 05, 2008 03:28 PM: It will be a great day for Nevada when the glass house known as the RJC comes tumbling down.

    Most people could not image the atrocities that occur in the Nevada court system. It is the equivalent of a third world country. Oppression Under Color of Law, Obstruction of Justice, Collusion, Unjust Enrichment, Honest Services Fraud......The slimy attorneys are bad enough but, Nevada Judges are the ones most responsible. The Judge is on the bench to preside over a fair and unbiased trial. Yet, Nevada Judges will use their power to circumvent the outcome to line the pockets of friends, family and friendly law firms.

    The Nevada Bar (attorneys for attorneys) is ineffective. The JDC is ineffective.

    The feds would have to build a new prison just for the Nevada legal community if they ever performed a round up.


    Report abuse

    nvkorruption wrote on September 05, 2008 03:06 PM: Relieved!

    Thank God it was the feds. Mileys gang probably filed the complaint to knock him out...but at least people can see that the feds respond.

    First the US Banruptcy judge on Beller then this. Endrun is right, there is more to come.


    Report abuse

    Relieved! wrote on September 05, 2008 02:06 PM: Thank God this man's true character is finally being publicly exposed!


    Report abuse

    Shannon wrote on September 05, 2008 02:05 PM: LDS in Vegas:

    "None of the above" won't work in this instance, and actually, "none of the above" votes don't mean anything because the person with the most votes wins.

    This is from the state website: "Does Nevada have a "None of These Candidates" or "None of the Above" option on the ballot?
    Yes, NRS 293.269 requires that ballots for statewide offices, President, and Vice President permit a vote to express a choice of "None of These Candidates." However, only votes cast for named candidates are counted in determining the nomination or election to these offices."


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