ZZZ - GMG - VEGAS INC 2011-2014

January 28, 2013

VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more

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In business government guns are big business for city, and a source of mockery By Richard N. Velotta and Eli Segall staff writers Guns and ammunition are flying off the shelves in Las Vegas. The fear of heightened regulation has sent people streaming into valley gun stores for gear and training. Federal lawmakers, responding to last month's shooting at a Connecticut elementary school that killed 20 children, are looking to crack down on gun ownership and there is talk of a renewed ban on assault rifles, but it's unclear whether any new laws will pass through Congress. "Obama's our best salesman," Range 702 manager Michael Heck said. "Every time he says the word 'gun' on television, sales go through the roof." Sales have skyrocketed for militarystyle rifles in particular, such as the AK-47 and the AR-15, one of the guns 20-year-old Adam Lanza used at Sandy Hook Elementary School on Dec. 14 to kill 26 students and staff. More people also are signing up for firearms instruction and concealed-weapons permit classes. Some customers said they fear for their safety after the latest U.S. mass shooting and want to protect themselves, the retailers said. But most cited a fear of increased government oversight and want guns that soon might be outlawed. Last month, sales volume at the Gun Store on East Tropicana Avenue was almost five times that of a typical December, owner Bob Irwin said. Sales STEVE MARCUS armed and ready: Sig Sauer handguns are displayed during the annual SHOT (Shooting, Hunting, Outdoor Trade) Show this month at the Sands Expo Center. were up six-fold at Discount Firearms and Ammo on South Highland Drive, according to General Manager Joey Wyson. At the newly opened Range 702 on Dean Martin Drive, sales revenue this past month doubled that of a normal month for an established store, Director of Business Development Lianne Heck said. During a recent week, one man bought a gun every day at Range 702. He and other customers have a "fear of the unknown," Lianne Heck said. Assault rifles, which cost at least $1,000, are being gobbled up. "Everybody's panicking," she said. Gun sales typically increase amid fresh fears of violent crime, Irwin said. For instance, some people buy guns after a neighbor's house gets burglarized. When government officials say they want to ban something, there also is typically a rush to buy, Irwin said. Some people buy the item in question in defiance; others because they predict the product will become a collector's item. The result, however, is the same: rising prices and disappearing inventory. The rush on guns and Las Vegas' booming gun range industry, while good for the local economy, could backfire and hurt the valley's image. In England, Las Vegas' gun business received a rash of unflattering atten- tion in the aftermath of Newtown, with several U.K. tabloids publishing stories about "shotgun wedding" services offered by The Gun Store and other shooting ranges. The services include a wedding ceremony, a session at the range and a chance to pose for photos with weapons, including Uzis and Thompson submachine guns. The tabloids' stories focused on the fact that no ceremonies had been canceled despite the Sandy Hook tragedy. As suggested by the Sun's headline — "Guns 'n proposes: What hope for the U.S. when couples can now get married with weapons?" — the subtext of the stories was that the services symbolize an unhealthy obsession with guns. "Draped in bullets and brandishing shotguns — like the one found in killer Adam Lanza's car — couples in full bridal wear exchange vows at the Gun Store," the Mirror reported. "They then go through to a marble-floored shooting range to fire off a few rounds." Similar stories appeared on the website of the Guardian and the U.K. version of the Huffington Post. Despite the bad press, a good number of tourists find spending an afternoon firing machine guns, rifles and handguns in Las Vegas a big draw. "There are some visitors from countries where shooting a gun isn't that easy to do, so there's some added appeal to having it so accessible," Las Vegas Convention and Visitors Authority spokesman Jeremy Handel said. Ric Anderson contributed to this story. courts more suspects indicted in ongoing hoa fraud investigation By Eli Segall staff writer Federal prosecutors have charged 11 more people in the Las Vegas Valley with a complex scheme to take control of local homeowners' associations and steer business to a law firm and construction company. A grand jury on Jan. 15 indicted the group, charging them each with one count of conspiracy to commit mail and wire fraud. Most also were charged with committing mail or wire fraud, and one was accused of making a false statement to law enforcement, according to the FBI. They face up to 30 years in prison and a $1 million fine on most charges. Twenty-six others have entered guilty pleas in connection with the case and | 28 JANUARY 2013 20130128_VI13_F.indd 13 | are awaiting sentencing. The newest defendants include 46-yearold Leon Benzer. His company, Silver Lining Construction, was poised to benefit from the scheme with condominium repair work, prosecutors alleged. Others charged were: Jose Luis Alvarez, 45; Rodolfo Alvarez-Rodriguez, 44; Ricky Anderson, 49; David Ball, 44; Edith Gillespie, 51; Keith Gregory, 59; Maria Limon, 45; Barry Levinson, 45; Charles McChesney, 47; and Salvatore Ruvolo, 84. The group allegedly operated the scheme from about August 2003 through February 2009. They looked for HOAs that could potentially file construction-defect lawsuits and then bought condos at those complexes, prosecutors said. Benzer and others, including Gillespie, then enlisted "straw purchasers" to buy the condos in their names, the FBI said. Alvarez, Alvarez-Rodriguez, Anderson, Ball, Gillespie, Limon, McChesney, and Ruvolo allegedly acted as those front men. Benzer and others allegedly provided down payments and monthly fees — including HOA dues and mortgage payments — on behalf of the straw buyers at least 37 times. Ultimately, 33 of the 37 units went into foreclosure. Many times, members of the accused group transferred ownership stakes in certain condos to other members of the group "to make them look like homeowners who could stand for election to the HOA board of directors," federal officials said. To ensure they won, the accused used "deceitful tactics, such as submitting fake and forged ballots, some of which were sent through the U.S. mail," officials said. They also allegedly hired "complicit" lawyers to preside over the elections and supervise the ballot counting. Once elected, the board members met with Benzer and others in order to "manipulate" board votes and processes, including the selection of property managers, contractors and HOA attorneys. For one complex, millions of dollars of construction-defect settlement proceeds were transferred to Benzer and his company, according to the indictment. 13 1/24/13 2:53:11 PM

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