Las Vegas lawyer, mortgage loan officer indicted on fraud charges

A loan officer and a longtime Las Vegas lawyer have been indicted in a mortgage fraud case, the U.S. attorney's office announced Thursday.

Attorney Stanley Walton, 52, and loan officer Pamela Black, 62, were indicted Wednesday on one count of conspiracy to commit bank, mail and wire fraud. They have been summoned to appear for an arraignment Wednesday before U.S. Magistrate Judge Robert Johnston.

According to the State Bar of Nevada website, Walton has been licensed to practice law in Nevada since 1992. The phone line at his law office has been disconnected, but his license remains active.

In July, District Judge Elissa Cadish issued a $22.4 million judgment against Walton in connection with an unrelated probate case.

The case involves the estate of Thomas Sims, owner of T.E. Sims Construction. Walton was appointed administrator of the estate in 2004. Millions of dollars reportedly are missing from the estate.

In September, Cadish held Walton in contempt of court and jailed him for four days after he didn't appear for a debtors hearing, where attorneys for Sims' estate were to question him about assets he could put toward the $22.4 million judgment.

Assistant Bar Counsel Phil Pattee said Walton has no record of professional discipline, but the organization is conducting an investigation of allegations made in the probate matter.

Pattee learned of the federal indictment Thursday and said he could not comment on the new allegations until he reviews the document.

The indictment claims Walton, Black and others conspired from September 2004 to January 2007 to recruit straw buyers with good credit to purchase six houses in Henderson and two houses in Las Vegas.

"The indictment does not charge Walton with acting as an attorney when he engaged in the alleged fraudulent conduct," according to a statement from the U.S. attorney's office. "The straw buyers were paid by Walton to place the homes in their names, and they did not intend to occupy the homes."

Walton and Black are accused of creating and submitting loan applications containing false information about the straw buyers' employment, income and intent to occupy the property.

The indictment claims Walton provided false employment verifications for some of the straw buyers.

Walton also caused information to be concealed from lenders regarding the payment of loan proceeds to him and his intention to use some of those proceeds to make mortgage payments and pay straw buyers for their participation in the scheme, according to the indictment.

The document claims Black received commissions from her employer as a result of the fraudulently obtained loans.

Prosecutors also are seeking the forfeiture of $2.5 million in proceeds they claim can be traced to the scheme.

Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710.