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Jul. 31, 2009

Richards sent to halfway house, fined $250,000

By MARK WAITE
PVT



JOHN GURZINSKI / LAS VEGAS REVIEW-JOURNAL
Joe Richards, at left, walks into the federal courthouse with attorney Leo Flangas Wednesday morning.


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LAS VEGAS -- Long time Nye County brothel owner Joe Richards received probation as promised for his guilty plea in a bribery case Wednesday, but U.S. District Judge Robert C. Jones added as a condition of probation that he serve one year in a Clark County halfway house.

Jones also imposed the maximum $250,000 fine.

Richards pleaded guilty to one count of wire fraud/honest services fraud March 16 for offering former Nye County Commissioner Candice Trummell a $5,000 bribe back in 2005, in exchange for her help revising a county ordinance that would allow him to open a brothel on Homestead Road in Pahrump. Trummell was acting as a cooperating witness for the federal government.

Jones stated his position early, remarking of defense attorney Tom Pitaro, "Maybe he negotiated a little bit too good of a plea agreement. I'm reminded, of course, this is only a $5,000 bribery attempt," Jones said. "But it is a serious offense.

"He has a propensity and complete ability to continue in that course of conduct. I have an obligation to make sure that doesn't happen."

Much of the argument Wednesday morning concerned what special conditions Jones could impose, given the plea agreement.

"We need to ask the government, 'Why in the world do you want to accept this plea agreement which provides no term of imprisonment?'" Jones asked.

By the afternoon, defense attorneys seemed resigned to the fact Richards would serve time in a halfway house or under house arrest. Under federal sentencing guidelines, without a plea bargain, Jones said he would have received a minimum of 18 months in prison.

Co-defense counsel Leo Flangas said, "I consider house arrest to be more stringent than a halfway house."

But Jones said, with house arrest, "The problem is I see no imposition on him whatsoever."

Richards will be required to pay $1,905.92 per month in fees for the halfway house, U.S. Probation Officer Felipe Ortiz said.

Richards will be allowed to leave the halfway house for 10 hours every day to operate his businesses, which include brothels in Crystal and Lathrop Wells, The Kingdom Gentleman's Club in Pahrump and the Pahrump Mirror newspaper.

"This is a wealthy gentleman who obviously has raised most of his funds from the legal and potentially illegal proceeds of prostitution," Jones said.

The judge complained Richards was uncooperative in providing financial information. In the pre-sentence investigation it was alleged Richards received $1.1 million in income annually and had $24 million in assets.

"Within the last couple years there's been a significant decrease, especially the last year, a significant decrease in the brothel industry," Flangas said. "You see where income was being made three, four years ago."

Flangas disputed comments by Ortiz that brothels operate as a cash business. Flangas said most customers pay by credit card.

Pitaro said Richards no longer operated escort services in Clark County, in reference to the claims about illegal prostitution.

Prosecutor Steven Myhre sought to explain the federal government's logic in accepting this plea bargain.

"The government did not uncover evidence in the course of the investigation that the defendant was engaged in illegal prostitution," Myhre said.

Myhre said the government recommended six months in a community corrections facility, at the suggestion of the probation officer, and a maximum fine.

The federal government also asked Richards to report any payments or in-kind services provided to public officials to the probation department.

Richards will also be prohibited from expanding his brothel or other sexually-oriented businesses.

There was no requirement for Richards to give up his present brothel license. But Myhre said, "Mr. Richards, the defendant, would have to go through licensing applications periodically."

He urged the Nye County Licensing and Liquor Board to consider the fact Richards committed fraud.

In seeking to reassure the judge of the toughness of the sentence, Myhre said, "it's important the court consider his business is at significant risk if the court enters a finding of guilty."

Pitaro pointed to Richards' heart condition as part of the plea agreement. Jones said that was no likely impediment to prevent Richards from continuing to violate the law.

"The doctor has recommended surgery and Mr. Richards has put it off pending this," Pitaro said.

Flangas went further, saying, "The doctor stated Mr. Richards is at risk of sudden death from cardiovascular problems."

Myhre said the government considered the evidence, the defendant's age, the circumstances, the impact on government resources and the impact on witnesses of having to go to trial.

Speaking of Trummell, Myhre said "She is a hero because she was not paid for her work. She did it at great sacrifice to her, and she did it with a great motive."

Myhre added the plea bargain brought a finality to the case to protect against disclosures of information during a trial. That allows the government to continnue other investigations into possible corruption, he said.

Bereavement camp

Nathan Adelson Hospice still has openings for a children's bereavement camp for ages 7 through 12.

The camp will be held Aug. 14 through 16 at Torino Ranch in Lovell Canyon.

Call Julie Platson, 751-5642, for more information.










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