Commissioner may be penalized over housing project near Red Rock Canyon

The administrative case relates to a yearslong legal battle between Clark County and Gypsum Resources LLC. It was settled out of court in June for $80 million in favor of the developer.

The regulatory agency opened disciplinary proceedings accusing Jones of deleting text messages and lying about it, and making a side deal with then-Clark County Commission Chairman Steve Sisolak, who was running for governor around the time of Jones’ alleged misconduct.

During a hearing Thursday, Jones’ attorneys and the State Bar agreed to combine the two complaints.

A multiday formal hearing for the complaints, to determine if the bar will impose disciplinary action against Jones, is set for March 11-13.

“We believe his conduct was intentional and he did it on purpose,” Chief Bar Counsel Daniel Hooge told the Review-Journal. “And we believe that the injury was serious: It ultimately cost Clark County $80 million.”

Jones declined to comment. He and Sisolak have denied wrongdoing.

The June settlement averted an estimated $2 billion in tax dollar losses had the court case continued. It allowed the 3,500-home project to move forward with some limitations.

The bar stepped in after U.S. Magistrate Judge Elayna Youchah sanctioned Jones last year for purportedly deleting his text messages before a key vote in 2019 that delayed the controversial housing project, which will overlook Red Rock Canyon.

The bar’s complaint alleges Jones’ actions amounted to misconduct by accusing Jones of intentionally deleting the messages, which could have been used as evidence in legal proceedings, and then lying about it.

“(Jones) engaged in conduct involving dishonesty, fraud, deceit, misrepresentation, or that is prejudicial to the administration of justice by intentionally destroying evidence and then lying by omission about the destruction,” it said.

Youchah wrote in her order that Jones’ action was a “purposeful act.”

She declined to refer Jones to the bar for misconduct but told developer Jim Rhodes’ attorneys they could file a complaint.

‘Illegal nature of the deal’

Before he was a commission candidate, Jones was an attorney representing the Save Red Rock conservation group, which was against Rhodes’ proposed project.

Jones filed a lawsuit on behalf of the group and ran his 2018 campaign for a commission seat on stopping the development, court documents say.

He then reached out to Sisolak, asking him to come out against the project in exchange for an endorsement from the conservation group for his gubernatorial campaign, the court said.

When Jones couldn’t reach Sisolak’s campaign, he wrote in an email: “Well, I’m doing my part. If Sisolak doesn’t want to play, then (it’s) going to blow up in his face tomorrow.”

Soon after, Sisolak delayed a commission vote until two new commissioners, including Jones, took office.

Save Red Rock dismissed the lawsuit and endorsed the future governor.

“At his deposition, Mr. Jones admitted the deal he struck with Commissioner Sisolak had ‘value,’ that Commissioner Sisolak used language similar to language Jones drafted when releasing his public statement, and that Commissioner Sisolak did what (Save Red Rock) and Jones wanted him to do,” Youchah wrote.

The second complaint from the state bar, filed on Oct. 31, alleges that Jones “engaged in criminal conduct” by attempting to offer Sisolak a reward to influence proceedings before the County Commission, according to the complaint.

“Respondent’s solicitation of the Deal to Commissioner Sisolak was surreptitiously made by Respondent out of the necessity to conceal both the illegal nature of the Deal as well as the prejudice it posed to Gypsum,” according to the complaint.

If the State Bar can prove that Jones’ alleged professional misconduct was intentional and resulted in serious injury to Clark County, then he could face disbarment, Hooge said.

Contact Katelyn Newberg at knewberg@reviewjournal.com or 702-383-0240. Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.