26 now guilty in Las Vegas HOA corruption, fraud scheme

An expanding federal investigation into corruption and fraud in Las Vegas-area condominium homeowners associations has resulted in 14 more guilty pleas, bringing total convictions to 26 so far, the Las Vegas Review-Journal reports.

Four retired Las Vegas police officers -- two of them captains -- are among the conspirators who have pleaded guilty in the scheme and a related bank-fraud case, says the Review-Journal.

Federal prosecutors said the scheme involved enlisting straw buyers to rig HOA elections, take control of nearly a dozen boards and steer construction, management and legal work the conspirators' way between August 2003 and February2009.

The scheme was bankrolled by $8 million funneled through secret accounts, prosecutors said Thursday in announcing the 14 pleas.

Pleading guilty to a single felony count of conspiracy to commit mail and wire fraud were:

Rosalio Alcantar, 60; Patrick Bergsrud, 43; Robert Bolten, 44; Glenn Brown, 52; Paul Citelli, 59; Michelle DeLuca, 51; Charles Hawkins, 51; Sami Robert Hindiyeh, 54; Lisa Kim, 47; Brian Jones, 38; Morris Mattingly, 51; Frank Sutton, 58; Anthony Roy Wilson, 34; and Jeanne Winkler, 44.

Sutton is a retired police captain and Mattingly is a retired officer. Both were straw buyers. Kim's husband, Benjamin, a retired police lieutenant, pleaded guilty with her Tuesday in a related bank-fraud scheme.

Sentencing was postponed until February because the investigation continues.

Each agreed to pay restitution to the victims, from as little as $6,000 to as much as $369,252. The combined restitution is more than $1.2 million.

See a slide show of the defendants.

Here's how the Justice Department summarized the scheme:

In order to accomplish the scheme, certain co-conspirators identified HOAs that could potentially bring construction defect cases. Once identified, the co-conspirators enlisted real estate agents to identify condominium units within the HOA communities for purchase. The co-conspirators then enlisted individuals as straw purchasers to use their names and credit to purchase condominiums in the complexes. The defendants admitted that the co-conspirators provided the down payments and monthly payments to the straw purchasers, including HOA dues and mortgage payments, and that various false and misleading statements were made to secure financing for the properties. Certain co-conspirators operated and managed the payments associated with these properties. The payments were often wired between California and Nevada. ...

Once elected, the co-conspirator board members met with other co-conspirators in order to manipulate board votes and process, including the selection of property managers, contractors, general counsel, and attorneys to represent the HOA. Once hired, co-conspirators, including property managers and general counsel, often recommended that the HOA board hire the co-conspirator construction company for construction defect repairs and the co-conspirator law firm to handle the construction defect litigation.

Previously, 11 others pleaded guilty in the case, and another defendant pleaded guilty in a related bank-fraud scheme

Prosecutors said they hope to secure ss many as a dozen more indictments.

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