Brothel manager released on bail

Tuesday, Aug. 11, 1998 | 9:44 a.m.

Colletti, a former Storey County commissioner, had been in the Washoe County Jail since her arrest last week at the brothel east of Reno. She was released on Monday.

A 33-count federal indictment handed up last week alleges former brothel kingpin Joe Conforte, Colletti and others used Swiss bank accounts, political payoffs and death threats to keep secret Conforte's continued ownership of Nevada's most famous bordello.

The indictment includes charges of racketeering, money laundering, witness tampering and other offenses.

Colletti, 61, and Joann Olcese, 54, the brothel's bookkeeper, are scheduled for arraignment Thursday.

Eduardo Neves, a Brazilian national who is majority owner of A.G.E., also was indicted.

Richard Sherman, an Encino, Calif., lawyer who represents current brothel owner A.G.E. Corp. and A.G.E. Enterprises, said Colletti's husband posted her bond.

"The evidence against Shirley Colletti is that she wired some money to Italy," Sherman said."Shirley Colletti is not the owner of the ranch. She doesn't make executive decisions. She does what she was told."

But during an initial court appearance last week, federal prosecutors said Colletti repeated a threat concerning Peter Perry, the former partner who apparently has turned on Conforte and now says Conforte does indeed maintain secret ownership of the Mustang Ranch.

"She repeated the threat that if Peter Perry persisted, he would end up dead," Assistant U.S. Attorney Michael Barr said.

Conforte owned the bordello from 1955 to 1990, when federal authorities sold it at auction for back taxes. Conforte is believed to be in South America.

The indictment accuses Conforte and his associates of paying off the county sheriff and an unnamed member of the county commission as part of the conspiracy to buy back his old property from the Internal Revenue Service by setting up fake companies.

A.G.E. officials have said that Conforte is still connected to the brothel as a consultant but does not maintain any ownership.

"How many people do you know who know how to run a brothel?" Sherman told the Reno Gazette-Journal. "Not too many, I'll betcha. Conforte is in constant contact with people and that's no secret."