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Kenny receiving $201,600 Rhodes salary

Consulting job with developer revealed in testimony at Davidson trial

Former Clark County Commissioner Erin Kenny, who complained last year that she was serving a sentence in a "public jail," revealed Thursday that Rhodes Ranch developer Jim Rhodes has been paying her $16,800 a month to work as a consultant.

Rhodes, one of Nevada's largest homebuilders, offered Kenny a job in January 2003, after she surrendered her seat on the commission to embark on an unsuccessful bid for lieutenant governor. Rhodes initially paid Kenny $15,000 a month, according to her testimony.


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  • After Kenny pleaded guilty to accepting bribes from strip club owner Michael Galardi and began cooperating with federal authorities in 2003, Rhodes upped her pay to $201,600 a year.

    Kenny, who is awaiting sentencing, said she works on projects for Rhodes and provides him with advice on government services.

    Kenny, 46, disclosed her payments from the prominent developer during her testimony as a witness for the prosecution in the corruption trial of real estate consultant Donald Davidson. Davidson is charged with paying Kenny $200,000 cash for pushing through a zone change and special use permit allowing for a CVS Pharmacy.

    The federal government also charged him with delivering $3,000 a month to Kenny for three years after she lobbied in favor of a casino in the Spring Valley neighborhood.

    Earlier Thursday, Kenny's former accountant and campaign finance manager, Daniel Geiger, testified that Davidson wasn't the only person from whom Kenny received payments. Geiger told jurors that Kenny also received $100,000 from Rhodes.

    Geiger testified that Kenny withdrew money from her campaign coffers for her personal expenses. He explained that since Kenny began that illegal practice in 1998, he had reduced the amount of contributions to balance the books.

    But at the end of 2001, Kenny's campaign contribution report was off by $100,000.

    "I told Erin, 'At some point we're going to have to deal with the fact that funds came out of the campaign,'" Geiger testified. "I told her I was short."

    Geiger said Kenny called upon Rhodes, her most generous campaign contributor.

    "She called Rhodes and said not all of his contributions were going to show up on the contributions report," Geiger said.

    The matter wasn't delved into further in court because Davidson's lawyer Dominic Gentile objected to additional testimony as hearsay.

    Kenny's relationship with Rhodes was controversial when she was a county commissioner, from 1995 through 2002.

    In 1997, Kenny and her chiropractor husband purchased a home in Rhodes Ranch. Throughout her term, her votes consistently favored the developer, and she once appeared at a county staff meeting to lobby in favor of a Rhodes project. Staff members told the media they believed the unusual move was an intimidation tactic.

    Prosecutors did not question Kenny about her relationship with Rhodes, but they contend Kenny and Davidson forged an illicit relationship in about 2001.

    Davidson was the vice president of Triple Five Nevada Development Corp., a company seeking to build a casino in the Spring Valley neighborhood.

    After Kenny successfully lobbied for the project in January 2000, she said Eskander Ghermezian, a Canadian billionaire, visited her and explained he owed her "a life debt." Kenny said in about April of that year, she began creating brochures for Triple Five.

    Davidson delivered $3,000 a month to her, even though she worked only about three hours a month, she said. She soon became ill and suffered from vertigo, which she later said has caused memory loss. She was bedridden for months.

    "I became ill and didn't work, but he didn't stop paying me," Kenny said of Davidson.

    From mid-2000 through 2002, Kenny and Davidson met monthly for coffee or breakfast, she said. Each time, he quietly slid an envelope full of cash across the table.

    In 2001, Davidson sought a zoning change on five acres at Buffalo Drive and Desert Inn Road on behalf of land broker Tommy Fehrman.

    Commercial zoning was critical to Fehrman, who stood to make $1.5 million in a sale of 1.5 acres to CVS Pharmacy.

    Fehrman offered Davidson a total of $500,000 in incentives to lobby for the zoning change and a special use permit allowing for larger signs and a driveway off a residential street.

    A 2006 indictment charges Davidson with paying Kenny $200,000 for her assistance in pushing through the zoning change. Kenny voted for the project without disclosing the payments she was receiving from Davidson.

    During the Nov. 7, 2001, meeting where the zoning change was approved, Kenny chided opponents to the amendment. She spoke sarcastically about how some residents, who once objected to a new adjacent housing development, had joined forces with that very same group of homeowners.

    Geiger told jurors Wednesday that he and Davidson's son, Lawrence Davidson, established a trust account in the Cook Islands to hide the illegal payoff Kenny collected from the CVS zone change.

    On Thursday, Kenny said she knew few details about that account.

    In describing the account, Kenny spoke softly, displaying a demeanor far different from the feisty and sometimes arrogant attitude heard on the audio recording played in court.

    "I didn't want to know," she said of the off-shore account. "It was such a bad thing, I refused to look at it deeply. It wasn't how I was raised and it wasn't what I should have done."

    Under Kenny's plea agreement, she faces no more than five years in prison and must forfeit $70,000. Kenny, who pleaded guilty to wire fraud, bribery and conspiracy charges, testified last year that she has not paid taxes on the cash she pocketed. She never reported any of the illegal payments on her campaign finance disclosure forms, she said.

    Last year, Kenny testified against her former colleagues Mary Kincaid-Chauncey and Dario Herrera, who were convicted of taking bribes from Galardi. Galardi and former commissioner Lance Malone, who served as Galardi's bagman, signed plea deals.

    Kincaid-Chauncey is serving 30 months in jail, Herrera is serving a 51-month term and Malone recently began a six-year prison term. Galardi, who received 30 months, is scheduled to turn himself in July 6.

    JUDGE ALLOWS DAVIDSON DEFENSE QUESTIONS

    U.S. District Judge Roger Hunt changed his mind Thursday and allowed a line of questioning that Donald Davidson's lawyer said was key to his client's defense. But by the end of the day, the turnabout didn't appear to have helped Davidson much.

    On Wednesday, Hunt had denied attorney Dominic Gentile's request to ask former Clark County Commissioner Erin Kenny's accountant, Daniel Geiger, about whether Kenny had expected a payment of $200,000 in mid-2002.

    Gentile had contended that if he could get into that, it would cause jurors to question whether his client was the source of a $200,000 payment made to Kenny in 2001. The federal government charged Davidson with paying Kenny that money for voting in favor of a zoning change that allowed for a controversial CVS Pharmacy.

    Gentile claims that Kenny was offered another $200,000 in mid-2002 if she pushed through a zoning change that would have allowed for a housing development to be built under McCarran International Airport's flight paths. The vote initially passed but was rescinded after Kenny left office.

    Gentile said only one individual -- land broker Tommy Fehrman -- had an interest in both the CVS project and the housing development. Davidson was involved in the first deal but not the second, Gentile said. Geiger testified Wednesday that he learned of the first payment from Kenny's father, Charles Callin, who then helped Geiger establish a secret trust fund to hide the illicit payment.

    Gentile hoped Geiger would tell jurors that the first payment and the second promise of a payment came from the same source.

    Geiger recalled Callin informing him of a second $200,000 payment that Kenny expected in 2002.

    But when Gentile asked whether the two payments were expected from the same source, Geiger said the source was never discussed with him.

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    Shell wrote on July 04, 2007 11:42 AM: And do you wonder who Erin is paying to stay out of prison for this long? How long are all of these trials going to take. There will always be another big developer. I wonder if she is making stuff up to delay going to prison... When all is finally said and done she will probably get off for all of the testifing she did to put all of the corrupt developers behind bars. I wonder who she is paying....


    Judge Dredd wrote on June 29, 2007 09:59 PM: Holy Shit! If these revealations dont lead to a massive investigation into the linkk between local government corruption ,developers and GLVAR concerning the last 6 years of unbridled building and price/sales speculation in the LV real estate
    industry...nothing will...my God this women is so corrupt and with the revelation that the developer Rhodes is paying hush money and prior to that undoubtably bribes to this whore...she needs to be sent to prision for life and Rhodes, among other developers and local real estate insiders need Federal crininal rackeetering investigation....the most recent example of full blown corruption is the Majors and city council sale of property to anothr developer for an absurd below appraisel price...


    David Huntington wrote on June 29, 2007 08:58 PM: Erin Kenny has taught us much. She is a fine example of how government really works. Thru Kenny, we have learned that crime DOES pay. Thank you Erin Kenny. Now, where do I sign up to run for the next election?


    Jim Rhodes crook wrote on June 29, 2007 08:51 PM: Maybe Jim Rhodes is keeping Kenny on the payroll because she will rat him out if he doesn't continue to pay her a hefty salary.


    Joe C wrote on June 29, 2007 07:58 PM: It would be nice if prosecutors continued to pry into Kenny business life a little more. A scum like her certainly has more hidden if they dig a little deeper.
    Lying would nullify her agreement and they could sentence her longer and fine her a whole lot more.
    It certainly a shame too many times crime continues to pay for the crooked scums. Rhodes developer if I remember right has had a few legal problems also.
    It’s time we vote in a death penalty for crooked politicians like Kenny. Granted there would be few elected officials left, but we could start over and maybe get real representation.
    From local to federal politicians, I think Charlie Manson has done less damage to our country.


    jh wrote on June 29, 2007 07:09 PM: Take away every dime she has, and all her toys, and sentence her to work for $7 per hour for the rest of her working life. This would be a lot tougher on her than jail. Let her have to live like the(honest)working poor in this city.


    J0hn 0neill wrote on June 29, 2007 05:39 PM: This woman is nothing more than a cash whooore.
    Rhodes obviously has something to hide but the US attorney is too busy sucking Kenny's %$$ to do anything about it!


    Pat wrote on June 29, 2007 03:16 PM: She makes me SICK. Not only is she still reaping the benefits of being a "paid politician" she has gotten away with it. Not to mention getting out of paying the IRS for undocumented income, but us paying taxpayers are hounded for mere dollars!!! It may not come soon enough, but she will get hers one day!!!


    Uncle Sam wrote on June 29, 2007 02:07 PM: This is one big win for the taxpayers of Las Vegas. Politicians believed they were above the law with taking bribes. It goes to show that Vegas is still part of the USA and not its own entity. Down with corruption and greed!!


    John O'Neill wrote on June 29, 2007 11:43 AM: Kenny must have some truly daming evidence on Rhodes.

    And what a sweetheart deal, the government allows this whore to collect money from somebody she is accused of...taking money from...crazy world...


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