Former deputy water engineer makes first appearance in court

Robert Coache, a jailed former state water regulator charged in a $1.3 million bribery scheme, is the victim of a political power struggle over water in the community of Mesquite, his lawyer said Wednesday.

"My client is caught in something much larger than himself," attorney Bret Whipple said. "There is political upheaval there. It's a very small community with a lot of different factions, and they're all fighting for control."

Coache, 52, a retired deputy state engineer with the Nevada Division of Water Resources, and Michael E. Johnson, 51, a former hydrologist for the Virgin Valley Water District, are charged with unlawfully taking money to help a wealthy Bunkerville landowner sell $8.4 million in water rights.

But Whipple said Coache never got any of the $1.3 million that police allege the duo received from John Lonetti Jr. to help broker the deal with the Southern Nevada Water Authority.

"There's no evidence to suggest any wrongdoing on my client's part," Whipple said after Coache made his first appearance in Las Vegas Justice Court. "He was never part of any deal involving Mr. Lonetti."

Whipple said Coache has never even met Lonetti and "couldn't pick him out of a lineup."

In court, Whipple asked Justice of the Peace William Jansen to reduce the $500,000 bail for Coache, a lifelong Las Vegas resident.

"It's not like he's going to flee the community," Whipple said. "This is a man who couldn't have more ties to the community."

But Jansen put off arguments until today, when Johnson is scheduled to make his initial court appearance.

Both Coache and Johnson are in custody at the Clark County Detention Center.

The district attorney's office filed a 25-count criminal complaint Monday against the two Las Vegas men, accusing them of misusing their offices from Jan. 1, 2006, until May 21, 2008, to help Lonetti profit from selling his Virgin River water rights.

The complaint alleges Coache and Johnson funneled the $1.3 million kickback through Rio Virgin LLC, a company the two officials set up to receive the money.

But Whipple said Tuesday that Coache put his own money into the Rio Virgin partnership and went out of his way to "wall off" himself from any potential conflicts with the Virgin Valley Water District.

Coache and Johnson are facing a variety of felony and gross misdemeanor charges, including bribery, extortion and money laundering.

The complaint alleges the two men laundered proceeds from the kickback until Sept. 13.

Lonetti, 77, who was interviewed by police, has not been charged in the investigation, which is continuing.

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