Prosecution wraps up case against Mustang Ranch players

Jennifer Coleman

Tuesday, June 29, 1999 | 4:02 a.m.

RENO, Nev. - Federal prosecutors Tuesday wrapped up their case against former Mustang Ranch manager Shirley Colletti and A.G.E Corp., the company that owns the notorious brothel.

The government alleges A.G.E. is a front for notorious Nevada brothel boss Joe Conforte, now a fugitive believed to be living in South America.

One of the government's final witnesses, Tudor Chirila, testified Colletti knew the corporation was owned and controlled by Conforte.

But the former president of A.G.E. and the Mustang Ranch also admitted that he didn't tell federal investigators until just weeks ago, though he had been in contact with them since 1996.

"No one ever asked me. I'm not a government agent," Chirila said.

"So Shirley Colletti talks to you, an employee fired by A.G.E. and tells you apparently everything the government needs?" asked David Houston, representing Colletti.

"She had been fired by A.G.E. also. She thought we were on the same page," Chirila said.

Houston and A.G.E. attorney Richard Sherman questioned Chirila's integrity, focusing on refund checks from the Internal Revenue Service amounting to more than $60,000 that was deposited into Chirila's account. The checks were made out to the corporation, but cashed by Chirila. He said the money went to pay off what the company owed him for legal services.

A 33-count indictment last August charged Conforte, Colletti and others with being part of an elaborate conspiracy to defraud the government in bankruptcy proceedings when the brothel was seized by the IRS, sold for back taxes in 1990, and illegally repurchased by Conforte and his cohorts.

Among other things, the government claims Conforte hid his assets during bankruptcy proceedings to cheat the government and buy back the ranch under his hidden ownership.

Defense lawyers Tuesday also questioned Chirila's proposal to buy the movie rights to Conforte's life story for $20 million.

"Where have you ever heard of anyone paying $20 million for a story?" Sherman asked.

Chirila said he didn't base the amount on what other movie rights had sold for.

Houston questioned how Chirila, who made $2,000 a month as president of A.G.E., would pay Conforte such a large amount.

Chirila said he had asked for a $3 million salary from A.G.E. and had proposed to pay Conforte in annual payments of $2 million. The proposal never went anywhere, he said.