Police probe targets Rhodes

Diana Sahagun

Friday, Oct. 20, 2000 | 11:19 a.m.

North Las Vegas Councilman John Rhodes -- who has already been charged with four felony counts of insurance fraud -- is now facing a police investigation into allegations he attempted to defraud the city.

North Las Vegas Police Sgt. Art Redcay told the Sun Thursday that police are investigating whether Rhodes attempted to defraud the city or obtain money under false pretenses when he filed an insurance claim for a city-owned Palm Pilot hand-held computer.

Both charges are felonies, because the computer in question is worth more than $250, Redcay said. He added that charges could also fall under embezzlement.

If Rhodes is convicted of a felony, he would be required to step down from his council seat.

Rhodes said Thursday that he has not been contacted or interviewed by police about the investigation.

North Las Vegas Mayor Michael Montandon and Councilwoman Stephanie Smith said they have not been questioned by detectives, either.

"My thought on it is they found something to investigate, and I am just going to wait for the investigation results," Montandon said.

Councilwoman Shari Buck said she has been contacted by police but has not yet talked investigators.

Councilman William Robinson could not be reached for comment Thursday.

Redcay said the investigation was sparked after a Sun article last week reported that Rhodes sought reimbursement of a Palm Pilot through both the city and months later his insurance company.

According to police reports, Rhodes claimed he returned from a midafternoon meeting July 15, 1998, and reported that his black, leather portfolio bag had been taken from his council office. Rhodes reported that his wallet, checkbook, $325 in cash and a $500 Macintosh Newton hand-held computer had been in the bag. He told police that he was uncertain whether he had locked his office.

"Preliminarily, we believe we found some things, which would probably be of criminal nature," Redcay said about the investigation. "There will probably be more than one charge filed. At this point, we are focused on the dealings with the Palm Pilot and reimbursement."

In reviewing city records relating to Rhodes' expenses, the Sun found he submitted a $460 Circuit City receipt for a Palm Pilot to the city for reimbursement July 29, 1998.

Then-City Manager Pat Importuna approved the reimbursement, and a city check for $460 was given to Rhodes, according to city records. The city paid for the Palm Pilot after Rhodes said he needed it for his public duties.

After reviewing court records, the Sun found that the same receipt was submitted by Rhodes to State Farm two months later. Rhodes claimed to State Farm that the Palm Pilot, which was actually city property, was purchased by him as a replacement for a Macintosh Newton hand-held computer that was taken in an alleged September 1998 burglary at his home.

Redcay said investigators are questioning city staff and others who may have information about the circumstances surrounding the Palm Pilot.

If any violations are found, they will be forwarded to the District Attorney's office, Redcay said.

State Farm also had concerns about some of Rhodes' receipts from his September 1998 burglary and forwarded their case to the Nevada Attorney General's office Nov. 10, 1999. The attorney general's office filed two counts of felony insurance fraud against Rhodes May 5.

Rhodes was charged with two more felony counts of insurance fraud Aug. 4 related to an alleged burglary to his home in July 1997. Rhodes reported to State Farm that a Rolex watch, a women's engagement ring and diamond wedding band and a VCR were stolen from his home. State Farm paid Rhodes $5,250.

Redcay said the police department has been in contact with state prosecutors in the insurance fraud case against Rhodes.

"This is not a combined investigation," Redcay said. "This is one the (police department) initiated. If the attorney general's office can help us, we'll cooperate with them."