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Attorney pleads guilty in HOA fraud; restaurant scheme details surface
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David Becker/Las Vegas Review-Journal
Attorney David Amesbury walks from the Lloyd George U.S. Courthouse on Monday after pleading guilty to fraud charges involving homeowners associations in the Las Vegas Valley. He is the eighth defendant and the first lawyer to enter a plea in the far-reaching investigation, which has targeted lawyers, judges and former police officers. » Buy this photo
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LAS VEGAS REVIEW-JOURNAL
Updated: Oct. 25, 2011 | 8:17 a.m.
A Las Vegas attorney who once ran a popular courthouse restaurant pleaded guilty Monday in the federal investigation into fraud and corruption at homeowners associations.
David Amesbury, 57, whose former partners in the restaurant are central figures in the federal probe, pleaded guilty to one count of conspiracy to commit mail fraud and one count of conspiracy to commit bank fraud.
He is the eighth defendant and the first lawyer to enter a felony plea in the far-reaching investigation, which has targeted lawyers, judges and former police officers.
U.S. District Judge James Mahan set a Jan. 23 sentencing.
In his plea agreement, Amesbury admitted playing a role in the scheme to take control of homeowners association boards with members who pushed for construction defect lawsuits against builders. A dozen homeowners associations have been dragged into the investigation.
Amesbury, whose wife is a deputy district attorney, admitted that between March and September 2008, he was paid a $3,000 kickback by his co-conspirators to help rig board elections at Chateau Nouveau and Pebble Creek. Homeowners were misled into thinking Amesbury was hired to oversee the elections on their behalf, the agreement said.
Amesbury also admitted that he participated in a separate scheme to defraud banks while seeking refinancing for what is believed to be the Courthouse Cafe, which he operated in the Regional Justice Center under a Clark County contract with two partners, former construction company boss Leon Benzer and ex-Las Vegas police Lt. Benjamin Kim.
The scheme, which occurred from October 2008 through July 2009, involved striking a secret deal to let a businessman identified as "S.K." handle the daily operations of the cafe without informing the county or the banks, according to court documents unsealed Monday in Amesbury's case.
The businessman paid Amesbury and his partners $8,000 a month and kept any additional profits from the courthouse operation, the documents said.
The documents do not specifically name the Courthouse Cafe, which is now operating as a Capriotti's Sandwich Shop, a national franchise based in Las Vegas. But earlier this year, the Las Vegas Review-Journal detailed some of the dealings over the cafe between Amesbury and his former partners and the county.
Benzer is the former owner of Silver Lining Construction, a company that did construction defect work for homeowners associations. Silver Lining's offices were among those searched in an FBI-Las Vegas police raid in September 2008. Kim's wife, Lisa Nicklin, ran Platinum Community Services, a homeowners association management company that also was searched in the raid. She is said to be cooperating in the investigation.
All three partners ran the Courthouse Cafe until January, when they had a falling out under the weight of the federal investigation and turned over their restaurant rights to Capriotti's with the county's approval
Benzer and Kim have not been charged in the federal investigation.
But on Friday, Mary Ann Watts, a former property manager at Vistana, identified Benzer in federal court as one of the key players in the alleged conspiracy to take over the homeowners associations.
Watts told Mahan that Benzer and one of her fellow defendants, former Vistana board member Edward Lugo, gave her "seed money" to start her own property management company in furtherance of the alleged takeover scheme.
Watts and Lugo pleaded guilty last week.
In court Monday, when Mahan asked Amesbury how he pleaded to the charges, he responded, "Guilty sir."
Amesbury said he understood he would have to pay $3,000 in restitution, the cost of the election rigging kickback.
Mahan allowed Amesbury to remain free on his own recognizance. Afterward, both Amesbury and his attorney, Frank Cremen, declined to comment.
Amesbury's plea is the latest in a long line of deals expected in the high-profile federal case.
Lawyers from the Justice Department's fraud section in Washington, D.C., plan to file as many as two dozen plea deals.
Amesbury and the other defendants who have pleaded guilty all have agreed to testify for prosecutors in their push to indict the higher-level players.
With the help of friendly homeowners association board members, legal work and repair contracts were funneled to lawyers and companies associated with the scheme at the expense of the homeowners, who were deprived of honest voting on their boards, court documents have alleged.
The board members were straw purchasers elected by the co-conspirators through classic dirty campaigning that included conducting phony polling, hiring private investigators to dig up dirt on candidates and rigging the balloting, the documents alleged.
Contact reporter Jeff German at jgerman@reviewjournal.com or 702-380-8135.
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@ Sarahh, I don't remember her last name for initials, but her first name is from dictionary.com
noun
1.a young deer, especially an unweaned one.
2.a light yellowish-brown color.
The entire Regional justice centre and its occupants need to be investigated. If justice is to be retained in Nevada The FBI must start from the top downwards. This is where the corrupt are operating, and until each and every judicial officer is fully investigated. (Are you listening FBI) then I have no faith that justice will be served or ever retained within this system in Nevada. I am fully convinced Dave Roger was elected by the good old boys who have continued in this type of Illegal conduct for years. The system is not transparent as is should be, and how many times have you heard the State Bar investigate laws for criminal Malpractice and the like. (None). It the same with Police and the "Inquest" reformation. They don't want it because they would have to change the practice's they carry out against the citizens of the State, and especially this County of Clark. If something is not done then its the citizens of this State do something about it. We are becoming the "Laughing stock" and this State will fall if change does not take place immediately. The crap and other injustice's are reaching the State's and shores of other countries, and people will simply stop coming and moving here if we do not do something now. A system that cannot be trusted is the worst of the worst.
And the initials of that DIL would be??
Ok so now we have the missing link to the puzzle.
I know her daughter-in-law worked at Platinum and the company formerly known as Platinum.
Well there is a woman at NRED with the initials CF that does advise BOD on how to over throw their current BOD and get new prop manager.
@ Sarahh If the governing documents of the Association require Annual Member meetings with elections, then the Management Company must hold an election and follow NRS 116.31034. However, the current Board members remain in place until an election can be held.
The replacement of resigned Board members is required to be followed according to your bylaws. Although I am familiar with your Association, there may be a specific reason that NRED made the decision they did. Rest Assured, NRED does not make verbal advisements, and if the management company is stating that NRED advised them to conduct Annual Election Meetings in such a manner, they have it in writing or they are making it up.
Waldo.Lydecker:
Excellent posting!!! And thank you for writing in a manner that even the common guy on the street can understand.
Sarahh:
Please ask your HOA management company to put their decision regarding board elections in writing. The other homeowner that claims NRED decided to freeze your existing board for two more years may be mistaken. Still it would be a good idea to to contact the Ombudsman's office and ask if this is true. If you are stonewalled, write your community management company and NRED letters requesting them to verify this information. Send it "Certified U.S. Mail, Return Receipt Requested". Remember: when memories fail, go to the documents. Documenting everything gives them less wiggle room. Mr. Robey would no doubt be more than happy to help you with these letters.
Plea deals, although sometimes necessary, are used much too often. And in my opinion, anyone connected to, or having knowledge of these illegal activities and failing to report it, is just as guilty: especially those from the legal community. They should all do some real jail time!