Construction Defect Firm Corruption Investigation In Las Vegas
Federal and local law enforcement officers raided nine sites around the valley on Wednesday in a sweeping probe into possible collusion between homeowners associations and businesses benefiting from construction defect lawsuits.
The raids are part of a “pending public corruption case,” according to Federal Bureau of Investigation spokesman Dave Staretz, who refused to release details. He said no arrests were made.
коли под наемAccording to a law enforcement source, the FBI is investigating whether individuals were placed on homeowners association boards who, in turn, would direct business stemming from construction defect lawsuits to select companies.
At issue, according to the source, is whether HOA members were steering contracts to certain construction companies.
Other sources said there has long been speculation that some HOA representatives were hiring certain law firms to handle construction defect lawsuits in exchange for kickbacks.
According to this article and others, a law firm would become involved with a homeowners association in the Las Vegas area representing the board in a construction defect case. The law firm (it was always the same firm, according to law enforcement) would recommend that the repairs be made by one Leon Benzer. His construction company would front the costs of the work and thereby receive the bulk of any settlement or award at the conclusion of the law suit. If the HOA board didn’t go along, they were replaced through carefully orchestrated and possibly fraudulent election proceedings. The new HOA board would likely be comprised of members that were on good terms with either Benzer or the law firm.
Benzer is purported to be an advocate for homeowners but the implications are much different. The FBI and local law enforcement are still tight-lipped about the investigation, so little more is known at this time.
Link to Las Vegas Review Journal Article, Link to Las Vegas Now Article
Updated: A well-known construction defect plaintiff attorney, Nancy Quon, has been added to the roster:
Agents are also interested in documents related to political consultant Steve Wark, who served as president of the Vistaña Homeowners Association, as well as prominent construction defect attorneys Scott Canepa and Nancy Quon.
30 September 2008 | Construction, Construction Defect, Construction and Law, Litigation | Comments
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