Councilman vows to prove innocence

Diana Sahagun

Wednesday, Aug. 9, 2000 | 11:34 a.m.

A simple burglary report filed in 1998 by North Las Vegas City Councilman John Rhodes has mushroomed into two indictments against him and an ongoing attorney general's investigation into other burglary reports he has filed.

The indictments each contain one felony count of insurance fraud and one felony count of attempting to obtain money under false pretenses, for a total of four felony counts.

The latest indictment, handed down Friday, involves an alleged burglary at Rhodes' house in 1997. Arraignment is set for Aug. 31.

It came as a result of investigators looking at past burglary reports filed by Rhodes after his indictment relating to the 1998 burglary report.

A trial set for Oct. 2 on the first indictment will likely now include charges in both incidents.

"I'm innocent, I'm not going to plead guilty to anything," Rhodes, a second-term councilman, said Monday. "I'm going to fight this to the end. They're looking for a conviction, but I'm not guilty."

So far the charges have not prevented Rhodes from fully participating in City Council meetings. Council members, however, are bracing for what could happen if Rhodes is convicted.

"We have to live by the American precept that an indictment is not a conviction, but on the same note, we have to be aware of the fact we have to prepare for what might happen if he is convicted," Mayor Michael Montandon said. "Even if he's not, we have to be aware of the public image."

If Rhodes is found guilty of a felony, he would lose his council seat, City Attorney Sean McGowan said. If Rhodes pleads to anything less than a felony, he would not be required to step down. Rhodes is due to run for re-election in May.

Rhodes had been licensed as a life, health and property insurance salesman from 1998 until last month.

He was fired July 26 from National Insurance of Las Vegas, according to the state Insurance Commission, and his insurance license, which was tied to the company, was suspended.

State Farm Insurance Co. investigators said they turned over their evidence this spring to the attorney general's office, because they became suspicious of Rhodes' claims.

Prosecutors say police reports and witness testimonies show a number of inconsistencies surrounding the burglaries at Rhodes' 3028 E. Diana Drive home.

According to the latest indictment, Rhodes was renting his house at the time of the alleged 1997 burglary and did not have personal property in the home. The indictment also says there was no physical evidence to support a claim of burglary.

On Feb. 10, 1997, Michelle Cummings, the tenant, called police and filed a burglary report after noticing a broken window in the master bedroom.

According to the report, Cummings went through the house with police and said nothing appeared to be missing or disturbed. The officers noted there were no footprints outside the window and that the house did not appear to be ransacked.

Rhodes was not mentioned in the report.

On March 4, 1997, however, Rhodes told police that a $3,800 Rolex Submariner watch and a $400 Toshiba videocassette recorder were taken in the Feb. 10 burglary.

On July 22, 1997, Rhodes reported to police that a $3,702 yellow gold wedding set with diamonds had also been stolen.

State Farm reimbursed Rhodes $5,250 for the items.

The circumstances surrounding the 1997 burglary reports led to the indictment handed down Friday.

The first indictment was related to a burglary report Rhodes filed Sept. 22, 1998.

Rhodes reported that everything at his home was taken but the bed, including a room full of furniture and electronics purchased for him by his girlfriend, Alesia Boone. He reported losses valued at $10,000.

A set of $1,800 Callaway golf clubs were among the items alleged by Rhodes to have been stolen.

Rhodes originally told State Farm investigators that he purchased the golf clubs at Mike's Golf Shop but that the owner, Mike Farino, had died. Rhodes told the investigators that they could speak to Farino's business partner, Terry Wheaton.

In grand jury testimony, Wheaton said he has been a friend of Rhodes' for more than 20 years and did not know or do business with Farino.

Rhodes later admitted to investigators that Farino was not dead, that he never paid Farino for the clubs, and that he never got the clubs from Farino. There are similar inconsistencies with other items that Rhodes claims were stolen, investigators say.

Two other burglary reports by Rhodes are the subject of a continuing attorney general's office investigation.

The most recent burglary reported by Rhodes at his home was March 20. Rhodes called police and reported items stolen totaling $3,996, including a new computer, sapphire and diamond jewelry, and cash.

The other came in July 1999, when Rhodes reported that someone had stolen another Rolex watch at his home -- one purchased in August 1997.

The watch was eventually found at a local pawn shop, under the name of Michelle Cummings, who pleaded guilty to theft March 8 and had jail time suspended after paying $500 in restitution.