Former Storey County sheriff running Mustang Ranch brothel

Friday, March 12, 1999 | 12:31 p.m.

The revelation came from a federal prosecutor during a hearing Thursday on preliminary motions in a criminal case that charges Conforte, former Storey County Commissioner Shirley Colletti and others of racketeering, conspiracy, money laundering, wire and bankruptcy fraud and witness tampering.

Colletti, who is awaiting trial, is also a former manager of the brothel.

Assistant U.S. Attorney Michael Barr said former Storey County Sheriff Bob Del Carlo is an unindicted co-conspirator in the case.

Barr told U.S. Magistrate Robert A. McQuaid that Del Carlo is also president of A.G.E. Enterprises and A.G.E. Corp., which he contends are straw owners of the infamous bordello 12 miles east of Reno.

Del Carlo later confirmed his employment at the brothel.

"I'm just overseeing the complete operation," he told the Reno Gazette-Journal.

Del Carlo served seven terms, or 28 years, as sheriff of the rural county where regulated prostitution is legal.

He chose not to seek re-election last year after a federal indictment said he was paid $3,000 a month by Conforte over more than four years while in office.

Del Carlo, who was not indicted, denied having received any money from Conforte.

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 and is considered a fugitive, Barr said.

Among other things, the 33-count indictment handed up last year accuses Conforte and his associates of paying off the sheriff as part of the conspiracy to buy back his old property from the Internal Revenue Service by setting up phony companies.

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

Richard Sherman, a lawyer representing A.G.E., said he does not believe Conforte will return to the United States to face trial.

As part of the criminal case, prosecutors are also seeking forfeiture of $16 million in assets, including the Mustang Ranch itself, 264 acres of surrounding land and other properties.

Eduardo Neves, a Brazilian national who is majority owner of A.G.E., also was indicted, as was Joann Olcese, the brothel's former bookkeeper.

Barr referred to Neves as a "straw man" for Conforte.

"A.G.E. is in fact the alter ego of Joseph Conforte," Barr said. "Conforte is still operating the ranch."

Sherman said when business matters need to be addressed, he discusses them with Neves, not Conforte.

But, he said, "Mr. Neves does not know how to run a brothel so he uses Mr. Conforte to be a liaison for him."

Del Carlo said he was hired by A.G.E. shareholders through A.G.E.'s general counsel, Geno Menchetti of Incline Village.

Del Carlo said he has not spoken to Conforte and does not know if A.G.E is a front for Conforte.