And the hits keep coming ...On Tuesday Metro raided the office of United States Justice Associates, a counseling company that regularly does business at the courthouse, looking for evidence the company was involved in an alleged extortion scheme on the Strip.
From the LV Sun:
Intelligence detectives arrived at the company’s office, at 1212 Casino Center Blvd., with search warrants at 9 a.m., said the building’s landlord, attorney Osvaldo Fumo. Police didn’t leave until 4:30 p.m., and they took away computers and other items.Ruh roh! (We really need to come up with a catch phrase for these things, suggestions welcome).
Detectives late Tuesday also interviewed District Judge Doug Smith, who has been linked to the investigation, sources close to the investigation said.
The company is run by Steven Brox, a seemingly shady character who was recently charged with a six-count criminal complaint for the sexual assault of a 15-year old relative. Here's how the program was (allegedly) run:
They allegedly pitched a program to casinos to do an end run around law enforcement and the courts. It was to have worked like this, authorities allege: When the casinos’ security forces detained people on trespassing and other minor criminal charges, the casinos were to route those people into United States Justice Associates’ program rather than calling police to make the arrests. Once enrolled in the program, the detainees would be charged $500 and the company would kick back $100 to the casinos for each person who completed the program, the affidavit says.At this point it is unknown what Judge Smith's exact level of involvement was, but it looks like he may have given his endorsement to the program back when he was a Justice of the Peace. Zoinks! (Again, help). Check out the full LV Sun article for more details.
(LV Sun)
There have been rumors for years that Judge Smith had an ownership interest in the Justice Associates. Further rumors have suggested that the Nevada Attorney General's office was investigating the matter but, under the command of AG Chanos, were ordered to "close" the matter. Aaaaaah, Vegas.
ReplyDeleteThis is what wild wild law is all about!
ReplyDeleteI thought I was the only dubbed "conspiracy theorist" around here. You guys are turning.
ReplyDeleteThere is no story here. The casinos don't care about $100/per trespasser. Maybe someone should investigate the AG's office.
Justice Associates did donate $500 to Smith in Feb 2008, but that ain't nothin' compared to the big boy's at $5000/pop, which includes attorneys, casinos, local businesses, etc.
ReplyDeleteWhy would they only donate $500 for a so-called gravy train endorsement?
Casinos are not getting their return on investment if they are paying $5000 to judicial campaigns & only getting $200 from 65 referrals to Justice Associates. This is way too small time. Good idea, to root our corruption in the judicial system. However, this is so small it is not worth to investigation cost. The focus should be on actual corruption in the system, this is a smoke screen for something else, guaranteed.
http://redrock.co.clark.nv.us/campaignfinance/
pdfs/2008/08_DC08_SMITH_REPORT1.PDF
**LU makes some good points from time to time. It's unfortunate that he's so obnoxious that most of us choose to skip any of his posts.
ReplyDeleteSmith and Brox have been friends for years. However, Smith has no interest in JA and Brox has imploded personally and professionally. Very few if any of the JCt. depts use JA for their referrals anymore.
ReplyDeleteThe "endorsement" was given because JA had a good idea that will lessen the clog of trespassing and other minor casino related cases in JCt. As I understand the concept, the casino enters into a civil agreement with the offender and they attend the class, which is paid for to JA, with a potion of the fee to the casino.
Its not a bad concept, and certainly using loaded terms like "kick back" and alleging the involvement of a mormon district court judge is good for newspaper sales. It is no secret that there is no love lost by LV Sun for Smith and vice versa.