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Sunday, May 16, 2004 Carri Geer Thevenot Kenny's finances could be trial issue Former Clark County Commissioner Erin should expect to face questions about her finances if she testifies against her co-defendants in a public corruption case, several lawyers said last week. They said attorneys representing her co-defendants specifically will want to know how she could afford to purchase a home worth nearly $900,000. 'You're trying to put her in a position before the jury where the jury thinks she's a distasteful person,' Houston attorney Douglas McNabb said. 'It's almost the Martha Stewart syndrome: People thought she was mean and uppity.' If jurors dislike, he said, 'then they're less inclined to believe her.' 'The point is to try to do everything you can to taint the witness's credibility,' said McNabb, who specializes in federal criminal cases. McNabb said already has a strike against her as a witness because she has admitted accepting bribes from topless-club owner Michael Galardi while on the County Commission. Kenny, 43, pleaded guilty in July to two counts of wire fraud and one count of conspiracy to commit wire fraud. Galardi pleaded guilty in October to a racketeering charge. As part of his plea agreement, Galardi admitted that he had paid between $200,000 and $400,000 to 'certain public officials' in exchange for their influence over matters affecting his businesses. A federal grand jury in Las Vegas indicted three people in November in connection with the corruption case: Clark County Commissioner Mary Kincaid-Chauncey and former Commissioners Lance Malone and Dario Herrera. Lawyers for all three declined to comment on how they will handle information about's finances. Malone's attorney, Dominic Gentile, said he did not want to reveal his defense strategy, but he would not rule out the possibility that's monetary resources will become an issue at trial. According to the indictment in the case, Galardi used Malone as a middleman to pay off Kincaid-Chauncey, Herrera and. As part of her plea agreement, has agreed to forfeit about $70,000, 'which constitutes or is derived from proceeds traceable to' her crimes. Both and Galardi have been cooperating with authorities and have agreed to testify against others involved in the case. Both defendants stand to receive reduced sentences in exchange for their assistance. McNabb said attorneys representing's co-defendants will try to argue 'that she's saying whatever the government wants her to say in order to get her sentence reduced and in an effort to try to maintain her lifestyle.' Records show that Erin and John bought a home at 9001 Night Owl Court, in the Summerlin community of Eagle Hills, for $869,000. The sale was recorded April 30. In February, Erin conveyed her share of the family's Rhodes Ranch home to her husband. The family bought the home for $346,000 in 1997. Her name appears on the deed for their new home. As a commissioner, Erin was paid $54,000 a year. Soon after leaving office, she was hired as a consultant by Jim Rhodes, the developer of Rhodes Ranch. Las Vegas attorney Louis Palazzo said Herrera's lawyers will be able to distinguish their client from Erin by showing that he is now 'out working in the hot sun at a construction site.' Palazzo, McNabb and Las Vegas attorney Charles Kelly said they would have advised Erin against purchasing an expensive home at this time. 'You want to avoid controversy at all costs, and buying a million-dollar home while pending sentencing causes one to wonder what your financial capability is,' said Kelly, a former federal prosecutor. 'It's simply not prudent.' Kelly, McNabb and Palazzo all said the purchase will provide fodder for cross-examination. 'I'd be very upset with her,' McNabb said. 'You just don't do things like that at this point. Now is the time to lay low and not draw any attention to yourself.' Kelly said he advises clients to keep a low profile when they are cooperating with the government, and Erin 'has failed to do that.' Palazzo said, 'I would not have a client go out and start purchasing assets right before they're expected to go to prison. Most people try to sell off assets.' Las Vegas attorney Frank Cremen, who represents Erin, said he sees nothing wrong with her home purchase. 'To me, it wasn't much news,' Cremen said. 'Would I have rather they not have the attention? Absolutely.' He noted that many people have been taking advantage of the city's skyrocketing real estate prices. 'Life goes on,' Cremen said. 'What can I say?' He said attorneys will have to prove its relevance to succeed in getting evidence of Erin's finances admitted at trial. Cremen also said his client's husband, a chiropractor, has income that he contributes to the family. He said John works 60 to 80 hours a week at his practice, despite reports that he cut back his schedule to two afternoons a week to be at home with their children. Their five children are enrolled in the private Meadows School, where tuition ranges from $11,000 to $14,000 a year, depending on the grade level of the student. Erin's plea agreement includes no requirement that she pay restitution. According to the document, 'The parties agree that the victims of defendant's conspiracy to defraud were the citizens of the state of Nevada and there are no identifiable victims for the purpose of ordering restitution.' U.S. District Judge Kent Dawson may impose a fine, which would be payable 'immediately upon sentencing,' according to the plea agreement. McNabb estimated that under the federal sentencing guidelines, Erin faces a fine in the range of $15,000 to $150,000. That amount could be reduced in exchange for her cooperation, the attorney said. 'I'd be very surprised if the court doesn't order her to pay a fine,' McNabb said. The attorney estimated that Erin faces a prison term in the range of seven to nine years under the sentencing guidelines. Like the fine range, the range of prison time could be reduced because of her assistance. Daniel Bogden, the U.S. attorney for Nevada, has said Erin will serve time behind bars. Cremen has questioned that assertion and said he holds out hope that his client will avoid incarceration. Erin's plea agreement also contains a standard provision, which states, 'The defendant is required to pay for the costs of imprisonment, probation and supervised release, unless the defendant establishes that the defendant does not have the ability to pay such costs, in which case the court may impose an alternative sanction such as community service.' Judges rarely order defendants to pay for the costs of their imprisonment or supervision, although they frequently order community service. McNabb said Erin should be prepared to answer questions about her finances not only at her co-defendants' trial, which is expected to start next year, but at her sentencing hearing. | |