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Fourth person pleads guilty in HOA fraud probe
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John Locher/Las Vegas Review-Journal
Deborah Genato hides her face as she leaves the federal courthouse Friday after pleading guilty to one count of conspiracy to commit mail and wire fraud in the investigation of corruption at Las Vegas Valley homeowners associations. » Buy this photo
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LAS VEGAS REVIEW-JOURNAL
Federal prosecutors kept the ball rolling Friday with a fourth guilty plea in the sweeping investigation into fraud and corruption at Las Vegas Valley homeowners associations.
Deborah Genato, 41, pleaded guilty to one count of conspiracy to commit mail and wire fraud. Senior U.S. District Judge Lloyd George set a Jan. 6 sentencing.
Genato, who is free on her own recognizance, worked for Platinum Community Services, which managed homeowners associations involved in the long-running investigation. The offices of Platinum Community Services, which is now operating under a different name, were searched in an FBI-Las Vegas police raid across the valley in September 2008.
In court Friday, Genato admitted to playing a role in the massive scheme to stack homeowners association boards with members who then pushed for construction defect lawsuits against builders. Nearly a dozen homeowners associations have been dragged into the investigation.
Genato admitted participating in the scheme from February 2007 through February 2009 as a property manager at Vistana, Park Avenue and Chateau Nouveau homeowners associations. Prosecutors have said the scheme went as far back as 2003.
When George asked her how she pleaded to the felony charge, Genato responded, "Guilty, sir."
Afterward, her lawyer, Mace Yampolsky, insisted that Genato was not a major player in the conspiracy.
"Based on her role in the grand scheme of things, she deserves probation," Yampolsky said.
Genato has agreed to cooperate with prosecutors and pay up to $30,000 in restitution to homeowners associations.
Her plea is the latest in what is expected to be a long line of deals in the far-reaching case.
Lawyers from the Justice Department's Fraud Section in Washington, D.C., are looking to file as many as two-dozen criminal cases over the next several weeks.
The defendants in the cases have agreements to testify in a push by prosecutors to indict higher-level players, who include lawyers, judges and former police officers.
Three other plea deals have been made public since Aug. 30.
Last week, Marcella Triana, 35, who once had a personal relationship with former construction company owner Leon Benzer, a key target of the investigation, entered a guilty plea to one count of conspiracy to commit mail and wire fraud.
Before her deal, longtime Republican strategist Steve Wark, 54, and another Las Vegan, Darryl Scott Nichols, 47, each pleaded guilty to the same charge, which can draw up to 30 years in prison.
All four defendants, however, aren't likely to get anywhere near that stiff a sentence because of their cooperation with prosecutors.
With the help of friendly homeowners association board members, lucrative 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.
The board members were "straw purchasers" in the condominium complexes and 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.
According to documents unsealed Friday in Genato's case, Genato accepted payments to help her co-conspirators fix homeowners association elections.
"Defendant Genato participated in rigging the HOA board elections at Vistana, Park Avenue and Chateau Nouveau by using her position as the property manager to provide the mailing lists, labels and other voting material that the co-conspirators used to create fake ballots," the documents alleged.
"She also allowed the co-conspirators to gain access to those ballots that were mailed to the property management company by the bona fide homeowners before the election date."
Genato also used her position to help "manipulate" the business of the homeowners associations to line the pockets of the co-conspirators at the expense of the homeowners, the documents alleged.
At Vistana and Park Avenue, the documents alleged, Genato recommended hiring two of her co-conspirators: a law firm to file construction defect lawsuits and a construction company to do the repairs.
The documents do not identify the co-conspirators.
Four attorneys with the Justice Department's Fraud Division, led by Deputy Chief Charles La Bella, are prosecuting the case. The Nevada U.S. attorney's office removed itself to avoid a potential conflict.
Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.
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Do you people really think that community managers and Board members (most of which have no formal education) are really smart enough to develop an ellaborate scheme like this??? Wow, you're dumber than they are! This was developed by an elite few, who manipulated those under them.
BTW, we wouldn't need HOA's if you West Coast lazy morons would take care of your things and maintain your property. People are the problem here, not HOA's...you're blaiming the institution for human behavior hahaha...you guys are morons indeed.
@Anonymous.One: I would never attempt to praise or defend the management company formerly known as Platinum, now known as CMG. The company may have changed names, but many of the previous people still work there, so I'm sure not much has changed.
So the recent CAM at versailles who was fired for reasons not given to homeowners gets a job with the help of the current management company who had to fire him even though versailles and the management company faces another legal lawsuit over his actions, is this in your face or what to us homeowners, it never ends
@homeboy I absolutely would love to that that info too. I wonder is the period of discovery still open in these cases?
OK ------ am I the only one who wants to know the NAME of the a member of the Ombudsman's staff's family that was employed by Platinum (and it's successor for several years)?? ---- Do the words “CONFLICT OF INTEREST” even mean anything anymore or has it become so commonplace it is ignored by law officials??
Sadly, most people see this defendant as a major player, but if you look at the facts, the scheme was in effect in 2003. This manager only participated between the years of 2007 and 2008 less than 2 years in a 5 year scheme. @Pianist while so quick to defend the management company formerly known as Platinum, please check the definition and penalty for Money Laundering. @Sarah H you should make it public that a member of the Ombudsman's staff's family was employed by Platinum and it's successor for several years and the Ombudsman's office even referred accounts to them. @aw local law enforcement was serving on the Board's padding their retirement, put the pieces together.
It's amazing how long corruption goes on, until the FEDS get involved. Why is that? Then, some complain that the government needs to stay out of things. If they stayed out of things, criminals such as these in this case, would still be stealing from homeowners. I am glad to read that there is finally some justice taking place in Nevada. It does however, make one wonder what the local authorities were doing while this was going on. I guess we'll have to wait and see the list of others that will be revealed; which may answer my questions!
death to all HOAs!!!!!!!!!!!!!!!!!!!!
At last, justice is being served up on a silver platter. Genato deserves much more than a light sentence or probation for her activities. She was the most arrogant woman I have ever had the distaste to have dealt with. I will look forward to attending her sentencing and looking her in the eye and reminding her of our last meeting. She needs her healthy dose of jail reality now. Thank you FBI and Justice Department officials for seeing this case through. Looking forward to seeing the other crooks take their long overdue fall.
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" - "CORRUPTION" - "CRIMINAL" 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 website: HOA1234 Dot Com ! Sam in Henderson