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Ex-HOA board member is ninth to enter plea deal in federal case
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LAS VEGAS REVIEW-JOURNAL
Another former homeowners association board member pleaded guilty Wednesday in the high-profile federal investigation into fraud and corruption at Las Vegas Valley associations.
Daniel Solomon, 39, a Las Vegas man who served on the board of the southwest valley's Vistana condominium complex, is the ninth defendant to strike a deal with the government in the far-reaching investigation, which has targeted lawyers, judges and former police officers.
Solomon pleaded guilty to one count of conspiracy to commit mail and wire fraud and will appear before Senior U.S. District Judge Lloyd George on Feb. 23 for sentencing.
In his plea agreement, Solomon admitted to 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.
Solomon admitted that he became a "straw purchaser" of a Vistana condominium so that he could get elected to the board and steer business to his co-conspirators. His participation in the scheme took place from January 2006 through February 2009.
Solomon also admitted that, while a member of the Vistana board, he participated in several votes that benefited his co-conspirators.
In one of those votes, the board approved a $19 million construction defect settlement, and in another one it awarded the repair work. The $19 million settlement was obtained by construction defects lawyer Nancy Quon, who is believed to be one of the unnamed co-conspirators described in court documents in the case. The repairs were done by Silver Lining Construction and its former owner, Leon Benzer, two of the other unnamed co-conspirators.
Neither Quon nor Benzer has been charged in the investigation but are key targets. Quon is facing an array of local criminal charges, including arson and insurance fraud, stemming from a suspicious fire last year at her Rhodes Ranch home. Prosecutors have alleged she set the fire in a botched suicide plot to escape the pressure of the federal investigation. She has denied the allegations.
The offices of both Quon and Benzer were among those searched in a September 2008 FBI-police raid in the investigation. IRS Criminal Investigation in Las Vegas also has been participating in the massive probe.
When George asked Solomon in court Wednesday how he pleaded to the federal conspiracy charge, Solomon responded, "Guilty, your honor."
Solomon agreed to pay up to $155,229 in restitution to the lenders who financed the condominium he bought with the help of his co-conspirators.
Afterward, Solomon, who was allowed to remain free on his own recognizance, declined to comment.
His lawyer, Jack Buchanan, said Solomon looked forward to his sentencing, when he can explain his "minimal level of culpability" in the scheme.
Solomon'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.
Solomon and the other defendants who have pleaded guilty all have agreed to testify for prosecutors in their push to indict 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 in the investigation 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.
Earlier this year, longtime Republican strategist Steve Wark, another former Vistana board member and straw buyer, pleaded guilty to one count of conspiracy to commit mail and wire fraud. Wark, 54, is to be sentenced before George on Dec. 16.
Last month, David Amesbury, a Las Vegas attorney who once ran a popular courthouse restaurant, became the first lawyer to enter a felony plea in the long-running investigation.
Amesbury, 57, pleaded guilty to one count of conspiracy to commit mail fraud and one count of conspiracy to commit bank fraud.
He 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.
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 Benzer and another partner, former Las Vegas police Lt. Benjamin Kim.
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 with county approval to Capriotti's Sandwich Shop, a national chain based in Las Vegas. Kim has not been charged in the investigation.
Contact reporter Jeff German at jgerman@reviewjournal.com or 702-380-8135.
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Has there ever been an HOA board member represented by a CAI attorney and/or community management company significantly punished by the NRED? NRS 116 proscribes stiff fines and disqualification to serve as a board member by the Commission for Common-Interest Communities. In those cases that I've heard about, they've always got off. I'll gladly stand corrected on the subject. Also, if some have been fined, suspended or permanently expelled, no wise cracks please! I am sure that it had nothing to do with failing to pay their CAI dues.
Why is it? Soooooo many times when you see the word: "HOA" anywhere in print either in Newspapers, Magazines or on the Internet? The words: "SCHEME" -- "FRAUD" - "CORRUPTION" - "CRIMINAL" - "SUED" follow it? America! It is time to "Have A Say In Your HOA"! Stop these crooks who are in the HOA Industry! Make your HOA show complete TRANSPARENCY! Check out our several Grassroots websites: HOA1234 Dot Com ! All dedicated to making Nevada’s NRS116 Laws more: “Homeowner-Friendly”! Sam in Henderson
kansas guy said on Nov 9: " The FBI should look into Coral Palm's Condo's and Level Property Management. They have a Board member that is in direct violation of Conflict of Interest and yet nothing is being done by the people at Ombudsman. All these people and Organizations are a joke." _____
Ignorance of what the Ombudsman Office, the Real Estate Division, the Commission for Common Interest Communities and local law enforcement can do, will do, and have never done is the heart of the whole HOA "racket". The failed history of these so-called public service organizations for the past decade is the REAL story behind the FBI's investigations. Would someone, anyone, report on ONE SINGLE example of where any of those public organizations did anything significant to truly punish any single HOA board member who was in good standing as a member of the CAI trade organization? Out of 3,000+ HOAs in NV controlling the lives of over a MILLION residents in the past 10 years, has there ever been ANY significant punishments for flagrant, gross fraud and abuse of a CAI MEMBER? Perhaps the lack of such information is not evidence of racketeering crimes. But, the insurance industry reportedly works on the 80-20 rule (expect at least 20% of people in charge of other people's money where there is inadequate oversight will be tempted to commit some kind of fraud or theft. So, a reasonable person could suspect that the lack of known punishment of HOA fraud and abuse by CAI members by NV authorities is a signal of something terribly wrong. On the other hand, we can suspect that every one of those accepting a plea deal in the FBI case to date to have been an active member of CAI while committing their crimes. If true, it would force people to wonder if the FBI is finding RICO violations connecting NV authorities and CAI members.
@William-
I've been wondering when others would notice the lack of coverage of this in the Sun. I'm not sayin' anything in particular, but it's a small town under the 2M on the surface...
Fausto and Homeboy:
Why is John Leach's name coming up at all? Just because he co-hosted a television show with construction defects attorney Nancy Quon and is the founder of CAI in Nevada doesn't mean anything. Why would anyone consider him to be a "person of interest" to this investigation? Smacks a tad of "guilt by association" if you ask me. I've dealt with him as a homeowner seeking justice and he did exactly as the system has been set up to do, he represented our HOA board of directors. Sure, I was greatly perturbed by some of his tactics. Foremost in my mind was his attempt to get me to sign a settlement agreement based upon our verbal understanding that our HOA needed to basically do everything I was requesting. Problem was the written agreement didn't match our verbal agreement and made me look guilty. Some would call this "good lawyering". What really sticks in my craw is that once he discovered I was LDS he let me know that he had been in an LDS bishopric in an obvious ploy to get me to trust him. Using religion for personal gain or profit, now that's a good one. Haven't seen that one before (humor intended). Still, I remain skeptical that he had anything to do with construction defects so I have to question how fair it is to trot his name out in that context.
Another revolting low-life criminal takes a plea. What a sad comment on our society so many of these people chose to sell their integrity for such pathetically tiny sums of money. Hey, Daniel Solomon, what's the thinking here? Did you really think that was all your good name was worth? What a pathetic loser you are. I hope you feel ashamed of yourself now. I hope you feel a few other things too, like stress. You know, the kind of stress that comes with unemployment, loss of reputation, loss of status in the community, a criminal record, big legal bills, and having to explain to your family and friends why you made a decision to become a petty sleazeball and a snitch. Enjoy the stress, dude. Enjoy all the painful stuff that's coming your direction. You earned it.
I like rodman's points. Let this investigation go as far and wide as necessary. An HOA is meant for management purposes, not profiteering. Too bad Ned Day is not alive to expose this!
Fausto;
These are your words -- not mine: --- “a lot of people saw this web back in 2003” -. These are also your words --- “Can you make the argument it was covered up for a while? Yes.” --- You seem to be very knowledgeable about John Leach and construction defects lawyer Nancy Quon. Let me know when your book comes out.
Has there ever been a complete list of the various properties (12 unnamed cited in article) printed? From the sounds of things there may be many more properties that should be considered for investigation, that would come to light, from the various owners of condos finding out if their properties are or are not on the list. Also, the names and companies of all of those who have been charged thus far would also help current condo owners determine if their properties are involved.
HomeBoy: It wasn't covered up for 8 years. In saying that, you obviously have not known about the background of this story and speak from ignorance. Heck, the FBI raids took place in 2008 (which is mentioned in this story). It takes times to put cases like these together. Can you make the argument it was covered up for a while? Yes. I look directly at the state's Attorney General in making that charge. They were involved and did (apparently) nothing. Did Metro cover it up? Why were they allowing armed officers at HOA meetings to quiet those who had put this puzzle together? Good question.
Fact is, while Quon may have hosted a TV program with John Leach, Leach (the attorney you reference) has not been named it any of this stuff and as far as I know was not involved at all. You might want to watch your accusations based on doing little more than a 5-degrees-of-Kevin Bacon act.