Woman says Quon helped direct HOA scam

Businessman Leon Benzer and construction defects attorney Nancy Quon were the brains behind a massive scheme to profit from the takeover of Las Vegas Valley homeowners associations, a former property management company employee alleged in court Thursday.

Denise Keser, 44, leveled the allegations while pleading guilty to her own participation in the scheme.

Keser, the 10th defendant to strike a deal with federal prosecutors, entered a guilty plea to one count of conspiracy to commit mail and wire fraud.

U.S. District Judge Gloria Navarro set a July 26 sentencing.

Keser admitted in court to participating in the scheme from April 2006 through February 2007. The scheme involved gaining control of homeowners association boards with members who pushed for construction defect lawsuits against builders.

A dozen homeowners associations have been dragged into the far-reaching federal investigation, which has targeted lawyers, judges and former police officers.

Keser told Navarro that she was asked to help Benzer find homeowners associations looking to pursue construction defect litigation.

Eventually, she said, she left her job at RMI Management, to open her own company with Benzer to manage home­owners associations at the southwest valley's Chateau Nouveau and other condominium complexes.

Benzer, who bankrolled the company, Crystal Management, was stacking association boards around the valley so that Quon could win support to file construction defect lawsuits and Benzer and his construction company could win approval to do the repairs, Keser alleged.

At Chateau Nouveau, Benzer had three board members on his payroll, she alleged.

Ultimately, Keser said, she decided that she didn't like what was going on, especially efforts to rig board elections with forged ballots and smear campaigns against candidates not backed by her co-conspirators. So she said she quit and went back to work for RMI Management.

"I didn't want to be a part of it," Keser told Navarro.

The judge, however, said she was concerned that Keser had stayed in the property management business and waited to inform RMI Management about her legal troubles until Wednesday night. Navarro allowed Keser to remain free on her own recognizance, but strongly urged her to find a new line of work.

Kevin Wallace, CEO and president of RMI Management, later said the company had fired Keser Thursday morning.

"RMI Management is disheartened to learn of the plea deal of Denise Keser," Wallace said in a statement after the plea. "The conduct resulting in the plea occurred during Denise's employment with another management company and did not occur during her employment with RMI. As soon as we became aware of this information, RMI terminated her employment."

RMI Management, the largest manager of homeowners associations in Nevada, "is not under investigation in any way," Wallace added.

Neither Quon nor Benzer have been charged in the federal investigation, but are key targets. The offices of Quon and Benzer's former company, Silver Lining Construction, were among those searched in a September 2008 raid conducted by the FBI, Las Vegas police and IRS Criminal Investigation.

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.

On Thursday, Quon's lawyer, Thomas Pitaro, declined to comment on Keser's courtroom statements. Benzer's lawyer, Dan Albregts, could not be reached for comment.

Keser agreed in court Thursday to pay up to $16,000 in restitution, which is the amount of money she was paid during the several months she ran Crystal Management for Benzer.

Keser declined comment after her plea. But defense lawyer Kevin Stol­worthy said Keser was looking to put the case behind her. "She's happy to get this over," Stolworthy said. "She's going to move on with her life."

Keser's plea is the latest in a long line of deals expected in the high-profile federal investigation.

On Wednesday, Daniel Solomon, 39, a Las Vegas man who served on the board of the Vistana condominium complex, pleaded guilty to one count of conspiracy to commit mail and wire fraud.

Solomon admitted that he became a "straw purchaser" of a Vistana condominium in southwest Las Vegas so that he could get elected to the homeowners association board and steer business to his co-conspirators.

Lawyers from the Justice Department's fraud section in Washington, D.C., plan to file more than a dozen additional plea deals in the coming weeks.

Keser and the other defendants who have pleaded guilty so far, all have agreed to testify for prosecutors in their push to indict higher-level players in the scheme.

Contact reporter Jeff German at jgerman@reviewjournal.com or 702-380-8135.

Trending topics:

• Denise Keser
• federal investigation
• HOA
• homeowners associations
• Jeff German
• Leon Benzer
• Nancy Quon

Comments

Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

1. Otto de Fay Nov. 13, 2011 | 2:39 p.m. Report Abuse

   @bruce.baxter & @Concerned Homeowner, Keeping the visiting FBI here is doable if we give them sufficient reasons to stick around. It worked very recently in New Orleans, where a July fed trial for officers has now yielded the October Federal Corruption charges against N.O.'s sheriff. More are expected shortly...No legislature's intervention was involved there. Presumably, the FEDS would need none here, if given adequate grounds and documentation to keep digging. Appears many here could keep them busy.

2. bruce.baxter Nov. 13, 2011 | 7:46 a.m. Report Abuse

   Concerned Homeowner: Your last missive would make an excellent guest column or letter to the editor. In the interest of fairness, it should run side by side to a rebuttal by a representative of the CAI or Real Estate Division. Similar to a Congressional investigation, the legislature should conduct their own investigation of the claims you have alleged. Perhaps a demand from the citizenry for such an investigation could be included in your column or letter? I am not sure if the legislature has subpoena power, if not, they should figure out a way to obtain it. Some of us may have had the same reoccurring thought, what do we do when the FBI leaves? If the feds leave, maybe we can appeal to the UN? Okay, that isn't all that funny but you get my point.

3. Concerned Homeowner Nov. 12, 2011 | 12:53 p.m. Report Abuse

   For over 4 years, the FBI has been drilling down on the clear and pervasive evidence of how easy it is to corrupt HOA board elections and to subsequently corrupt the entire HOA management system. The public evidence released to date shows how easy it has been to corrupt HOA ballots and processes prior to the vote counting. Such open awareness by the NV B&I Department, the Real Estate Division, CIC Commission, CAI, attorneys, community management companies and HOA Boards of such corruption has resulted in absolutely zero action by those authorized to protect the property rights of homeowners. NRS 116 and the implementing rules and regulations provide absolutely no viable protection to homeowners against corrupted ballots and handling processes. We all have to wonder how that many managers and professionals with such generous salaries at so many levels are able to ignore such powerful evidence produced by the FBI? It should be clear to everyone who studies HOA law and regulations that only through changes in HOA boards can homeowners change the way their community property is managed. And, the FBI has proven that corruption of board elections is easy and probably widespread. It is clear homeowners have been seriously failed by the Nevada authorities at every level. It is time to demand personal accountability at the CIC Commission and Real Estate Division levels. No more coverups of corrupted ballot processing can be tolerated! Clearly, the FBI must indict some NV managers, property management companies and CIC Commissioners for abject failures to act to prevent such obvious election fraud and failure to avoid the subsequent construction defects processing fraud. Why should those in high authority be allowed to skate free while the "little" people take all the blame?

4. HomeBoy Nov. 12, 2011 | 10:13 a.m. Report Abuse

   Some facts from the above article; ------ The judge, however, said she was concerned that Keser had stayed in the property management business and waited to inform RMI Management about her legal troubles until Wednesday night. ----- Kevin Wallace, CEO and president of RMI Management, later said the company had fired Keser Thursday morning. ------ Wallace said in a statement after the plea. "The conduct resulting in the plea occurred during Denise's employment with another management company and did not occur during her employment with RMI. As soon as we became aware of this information, RMI terminated her employment." ------ Kinda ruined any faith I had.

5. bruce.baxter Nov. 12, 2011 | 10:09 a.m. Report Abuse

   Fionaspairadii: You appear to be an industry insider. As such would you care to respond to the observation that the industry, including community management companies, is designed to cover up the misdeeds of HOA boards and that in reality the concerns of individual homeowners place a very distant second place? Also, do you believe that the moon is made of green cheese? So exactly what is your explanation for the on-going FBI investigation? Guess we should have left it up to local law enforcement and the Nevada Real Estate Division?

6. Fionaspairadii Nov. 12, 2011 | 8:20 a.m. Report Abuse

   A former disgruntled employee and a man writing a book on the negative aspects of the industry. Interesting folks.. Though the points and questions brought up are interesting, the things both leave out should tell those reading this thread a lot. Their rants will not change my mind, but I do hope it makes people become more involved in their associations. We have seen a lot of opinions - mine included - but before believing any rants on a thread like this make sure you research and get the facts. I did and my faith in Kevin Wallace and the team at RMI stands fast.

7. HomeBoy Nov. 12, 2011 | 7:09 a.m. Report Abuse

   What’s wrong with this picture? -- After reading this excellent article written by Jeff German about how HOA Board elections were corrupted, I find it hard to believe there are some people commenting on this this article and saying --- (Quote); “Sometimes the issues lie with you for just not being able to gain the majority within your community to run things the way you would like to see it. That is called a Democratic Republic. (Un-Quote) ----- Apparently some people really believe that the HOA homeowner is at fault for not recognizing the election was fixed. I wonder why the Associations Management Company didn’t notice the irregularities? Were they also fooled, or was there some other reason for them to ignore the obvious? ---- I would be willing to bet that NRED Ombudsman has had complaints about HOA election fraud in the past, BUT NEVER REPORTED THE FACTS TO THE FEDERAL GOVERNMENT. ----

8. bruce.baxter Nov. 11, 2011 | 11:51 p.m. Report Abuse

   HOA Gal:
   
   Considering your moniker, your spirited defense of your industry is understandable. However, you simply have no idea what you are talking about. You seem content to hurdle insults, relying on broad generalizations. In the face of specifics, it appears that you have tucked tail and ran. At this point, a few questions are in order: Are you now, or have you ever been a member of CAI? Are you currently employed by an organization that has had its offices raided by the FBI? Has your specific office been raided? Have you been involved in any way with HOA elections? To the best of your knowledge has anyone in your organization been interviewed by the FBI? Is there currently an on-going complaint filed against you or your organization? Has there ever been a complaint filed against you or your organization? What is your exact relationship to any or all previously identified as persons of interest in this federal investigation? Have you now or have you ever had a relationship, personal or business, with any of the 10 that have to date plead guilty? Do you have a business or personal relationship with anyone that has been, is, or may become a person of interest in this investigation? YOUR FAILURE TO RESPOND TO ANY OF THE ABOVE QUESTIONS WILL BE DEEMED AN ADMISSION IN THE AFFIRMATIVE.

9. hadenough Nov. 11, 2011 | 11:23 p.m. Report Abuse

   Attorney Nancy Quon was identified as a leader in the fraud, and it is well-known that Ms. Quon and Sun City Anthem Association Attorney John Leach were close business associates for the years during the time the HOA scams were being conducted.
   
   See these links for some details:
   [3] www.8newsnow.com/story/9390698/i-team-hoa-investigation-widens
   [4] www.reviewjournal.com/lvrj_home/2000/Apr-25-Tue-2000/lifestyles/13422703.html
   [5] www.red.state.nv.us/CIC/Minutes/2008/cic_minutes_032008.pdf
   (”Nancy Quon stated that she was asked to speak … on behalf of John Leach.”)
   
   Questions: (1) Could the Sun City Anthem Association Attorney be charged in the FBI case in the near future?
   
   (2) If so, could the Sun City Anthem Director’s votes and RMI’s concurrences to continue using this attorney’s advice (in spite of receiving hundreds of SCA member complaints over the years) be shown to be examples of malfeasance?

10. hadenough Nov. 11, 2011 | 11:20 p.m. Report Abuse

    RMI is mentioned as a recent employer of the 10th person that entered a guilty plea on the FBI case.
    
    Questions: (1) After so many problems with local RMI credibility in the past few years, is RMI’s latest claim of “not under investigation in any way” believable?
    
    (2) Would RMI admit it if they had been under investigation by anyone at any time during the past 4 years?

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