Organized crime in Las Vegas takes on a new look

Yes, this is organized crime in Vegas.

Not the traditional mob stuff, but there stood 14 people who ripped off people who live in HOA communities.

The fraud was perpetuated between 2003 and 2009 by having some people buy into various HOAs, run for the boards, vote to approve construction defect lawsuits, then direct the construction repairs to a particular contractor, suspected to be Leon Benzer, although he has not been charged. Attorney Nancy Quon, thought to be the center of the fraud, died in her bathtub.

Eleven people pleaded to charges previously, 14 more did so on Thursday, and a 15th had agreed to plea but was ill.

The “I admit I am a crook” count is up to 26 and is expected to increase.

More grand jury action is expected this summer, according to federal prosecutor Charles La Bella, a deputy chief of the criminal division’s Fraud Section in Washington, D.C. Because of potential conflicts, Nevada’s U.S. attorney’s office is not handling the case.

Federal officials estimate the potential loss so far within 11 HOAs investigated is $76 million. That’s not just the loss to the HOAs, that includes losses to construction firms’ insurance companies, which may have paid more than they should. It also includes attempted fraud efforts that failed.

For these 14 defendants, the government seeks restitution totaling more than $1.2 million. Some defendants must pay as little as $6,000 while the highest figure is $369,252.

Obviously, some ruined their lives with felony convictions by selling their integrity pretty cheaply.

As the 14 stood before U.S. District Judge James Mahan on Thursday, they looked like they could be your neighbors. They looked trustworthy, not like the cheats they are.

Who were they?

The two former local cops turned corrupt board members are Morris Mattingly and Frank Sutton.

The attorneys who helped the fraud advance in various ways are Jeanne Winkler, now disbarred, and Brian Jones.

The real estate agents are Patrick Bergsrud and Anthony Roy Wilson. They found homes in HOAs to buy and became homeowners and corrupt board members.

The property manager is Lisa Kim, who rigged elections, pushed the Vistana HOA toward a construction defect case and directed the HOA to Benzer’s former aptly-named company, Silver Lining Construction.

The money shifter is Rosalio Alcantar, who transferred $8 million in and out of bank accounts to pay for misdeeds, including paying corrupt board member.

Sami Robert Hindiyeh and Glenn Brown helped rig elections. Hindiyeh was a consultant who looked for HOAs to take over.

Other straw buyers included Robert Bolten, Charles Hawkins, Michelle Deluca and Paul Citelli. All except Citelli became corrupt board members. His election was stopped by the September 2008 raids, which disclosed the FBI investigation.

The happiest people in the courtroom were HOA owners and board members overjoyed to see these people admit to one count of conspiracy to commit mail and wire fraud. They will be sentenced in February, and the charge carries a maximum penalty of up to 30 years in prison and a $1 million fine. Some may see their sentences reduced, based on their cooperation with the government.

Conservative political consultant Steve Wark, the former president of Vistana, was the first of the 26 to flip in August, hoping to get a reduced sentence later.

Thursday’s spectacle is just one more life lesson: Not everyone you deal with in the HOA world has your interest at heart.

That’s a dismal thought when about 1.2 million people in Southern Nevada live in nearly 3,000 HOAs.

The only positive angle here is that the federal investigation found 11 HOAs worthy of investigation rather than thousands.

Jane Ann Morrison’s column appears Monday, Thursday and Saturday. Email her at Jane@reviewjournal.com or call her at (702) 383-0275. She also blogs at lvrj.com/blogs/Morrison.