Creditors file $3 million in claims against Mustang Ranch

Tuesday, Oct. 26, 1999 | 10:10 a.m.

U.S. District Judge Howard McKibben is sorting through the claims as he decides whether the defunct brothel should be forfeited to the federal government.

Government agents padlocked the brothel east of Reno in August after the owners were convicted on a variety of fraud, bribery and racketeering charges.

The biggest claims come from the son and ex-wife of a former lawyer for the Mustang Ranch, Peter Perry.

Perry cooperated with government investigators three years ago when they began the criminal investigation.

Prosecutors say they the owners sent millions of dollars abroad illegally to fugitive brothel boss Joe Conforte.

Others filing claims against the Mustang include David Burgess, the owner of the neighboring Old Bridge Ranch brothel.

Burgess, Conforte's nephew, claims he paid for and owns a sewer line that crosses the Mustang property. He also is trying to preserve his claim to an easement for the sewer line and an easement for traffic across Mustang property to his brothel.

Perry, who represented Conforte and the Mustang for years, has claimed a 10 percent ownership of stock in the companies a jury ordered to forfeit the ranch.

A federal jury in July found A.G.E. Corp. and A.G.E. Enterprises Inc. guilty of some of the charges in a sweeping 33-count indictment and ordered the companies to forfeit the ranch and other properties and pay $40 million to the federal government.

Richard Sherman, defense lawyer for the A.G.E. companies, contended at trial that Perry had no legitimate claim of ownership of the companies, but Perry insists he does.

Perry, who pleaded guilty to a felony involving charges of illegal wire transfers, surrendered his license and has been sentenced to serve evenings in custody.

The $3 million claim was filed for Wildcreek Development LLC, a company now developing 68 acres it bought from A.G.E. adjacent to Wildcreek Golf Course. The property has been locked in litigation for years. Perry's ex-wife Adele, who owns the bulk of the development company, and their son, whose trust owns 10 percent of it, claim A.G.E. drove up their development expenses over several years.

The property now is being developed for residential and commercial use.

Lawyer Tudor Chirilla , who once was president of the A.G.E. companies, claims they owe him $67,669 he advanced them or they owed him and failed to pay.

Nevada Hydrocarbon Inc., a company that treats contaminated soil, wants the court to guarantee that its lease of 160 acres of property adjacent to the Mustang Ranch still will be valid and that it can continue operations there. It is also concerned that its easement across Mustang property for trucks carrying loads of contaminated soil also be maintained.