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Federal probe into valley HOAs broadens
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John Gurzinski/Las Vegas Review-Journal File Photo
FBI agents assigned to the leak investigation have interviewed at least one federal prosecutor close to construction defects attorney Nancy Quon. » Buy this photo
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© 2011, LAS VEGAS REVIEW-JOURNAL
Federal prosecutors have identified 75 to 100 co-conspirators, including judges, attorneys and former police officers, at various levels of a massive fraud scheme involving Las Vegas Valley homeowners associations, the Las Vegas Review-Journal has learned.
Some 25 to 30 targets of the investigation are taking plea deals that will ensure their cooperation in the prosecution of as many as two dozen high-level players in the scheme.
Some of the plea deals will be finalized in meetings with prosecutors from the Justice Department's Fraud Section Tuesday and Wednesday at the FBI's Las Vegas field office. Prosecutors expect to seek grand jury indictments against the high-level players in coming weeks.
The long-running investigation appears to be entering a new phase at the hands of the Justice Department lawyers from Washington, D.C., who recently took over the case.
The shift came in part because of suspicion that the U.S. attorney's office in Las Vegas had stalled the investigation.
The fraud investigation became public 2½ years ago with raids of law firms, HOA offices and businesses across the Las Vegas Valley.
FBI agents reportedly seized records related to a scheme to rig homeowner association board elections to position conspirators, including former police officers, who would push the boards to file construction defect lawsuits against builders.
Legal work and multimillion-dollar repair contracts then would be funneled to associated lawyers and companies.
The Washington-based prosecutors have arranged the plea agreement meetings away from the U.S. attorney's office, where prosecutors are themselves under criminal investigation, suspected of leaking information to suspects.
The leaks, being investigated separately by the Justice Department's Public Integrity Section, might have allowed one of the HOA targets, construction defects attorney Nancy Quon, to alter or destroy evidence sought by investigators.
FBI agents assigned to the leak investigation have interviewed at least one federal prosecutor close to Quon, and are examining the conduct of others for potential obstruction of justice charges.
Sources said the obstruction of justice investigation reportedly goes beyond the U.S. attorney's office to include prominent officials who might have passed along confidential information to Quon.
Her political connections and friends in the Las Vegas legal community include several judges.
Officials at the FBI, the U.S. attorney's office and the Justice Department wouldn't comment on the HOA investigation.
Quon, whose law office was searched in the September 2008 homeowner association raids, also is at the center of another criminal investigation by Las Vegas police.
Her live-in boyfriend, former Las Vegas police officer William Ronald Webb, in November was charged in a scheme to arrange her death using undetectable illegal drugs so that he and her family could collect life insurance money.
Detectives suspect Quon was involved in the death plot while under intense federal scrutiny in the HOA investigation.
The lawyer, who once reportedly brought in $100 million through construction defect lawsuits for homeowner associations, has denied planning her own death.
A retired Las Vegas police officer committed suicide after his name surfaced in the investigation. Christopher Van Cleef shot himself a few days after the HOA raids.
Another central figure in the HOA investigation, former Las Vegas Police Lt. Ben Kim, retired last year as the investigation continued to attract headlines.
Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.
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They need to go after HOA management firms, we need more Laws with teeth in them to regulate these firms that feed on home owner dues, intimidate Boards and work hand in hand with HOA Attorneys to milk as much money from the Associations as possible, the NRS 116'S are controlled by Attorney's who work with management companies against the greater good of an Assiciation. Management companies are vultures and control freaks and like far to many HOA Attorneys are ethically and morally challenged people that skirt the regulations to fill their pockets with far to many add on expenses that are uncalled for. Hopefully the investigation will open the eyes of the legislators who themselves caused many of these corruption opportunities with their own incompetence. This is only the tip of the iceberg on corruption in this industry believe me.
Wow this has more drama than TNT. A bunch of crooks, HOA, FBI, polices, judges, lawyers, contractors and I'm pretty sure the list goes on. Make me wonder why is it okay for them to do it and the "real crooks" get caught right away. Then not to face the music the retired officer committed suicide and the lawyer tried to plot a death while under investigation, take the law enforcement to jail and give the crooks the badges at this rate.
"Maybe we can rocket this to a #1 position on the charts!"
Shall we? LET'S!!!
Hey Throwing.Bones, I've been singing your song for several years now. I'm so pleased to see that someone else is knowledgeable about not only the melody, but also the lyrics.
... Maybe we can rocket this to a #1 position on the charts!
That's the 8th District Family Court scheme is related to all the other schemes that are cooking view from here. HawkEye over-and-out
You all remember the "DEM BONES" song - "the hip bone's connected to thigh bone..." and so on?
Please be a little more patient as the Justice Department lawyers from Washington build the skeleton of the various criminal schemes operatng through the RJC and family court.
Sing along: THIS scheme's connected to the OTHER scheme. That scheme's connected to A'NOTHER scheme. That scheme's connected to a FURTHER scheme - TAR'GETTING the public!
HOA - MEDICAL MAFIA - PROBATE - GUARDIANSHIP - LAND BARRONS, etc.
The RJC makes WI, CHEATUM & HOW look like a PUBLIC INTEREST LAW FIRM.
Perhaps the RJC should change it's name to: CAC - Criminal Accomplishment Center. The Mission: Legalizing otherwise criminal activity for the citizens of Nevada.
Lots more exposure is just around the corner.
Just don't mention the word "regulate" to these crooks. Oops, there, I said it!
In case anyone hasn't noticed, one of Nevada's most responsible parties in this situation is the Nevada Legislature. Though there's one legislator who tries to improve Nevada's laws for the benefit of residents of HOAs, the organized lobby of HOA managers and their lawyers, as well as their nationwide shill organization CAI (Community Associtions Institute) is always there to screw things up.
For example, when was the last time the Legislature ever considered taking away the power of developers and their management companies to perpetually control HOAs in the areas they developed? Take a look at two communities where the homeowners hate their HOA the most: Summerlin and Southern Highlands. Ever wonder why? Developer controlled management companies.
This Nancy Quon person is small potatoes compared with the scams which HOA managers all over town are running.
The GOP of Nevada supports this Nazism regime!
dgruber, What a twisted case. I live in a HOA and was not aware of the power they have if you upset the apple cart. I got notices because my garage door was left open but no other reason. I know the rules and regulations but observe them being broken all of the time by neighbors. Good luck in getting your case resolved.