Man indicted in child-porn case

Kim Smith

Thursday, Aug. 9, 2001 | 10:38 a.m.

The suspect in a multimillion-dollar Ponzi scheme has been indicted on 48 sex-related charges pertaining to a minor.

The indictment, which was unsealed Wednesday, charges Franklyn Perry, 61, with 15 counts each of unlawful use of a minor in the production of pornography and possession of child pornography.

In addition, Perry was charged with seven counts of sexual assault of a minor under 14, six counts of attempted sexual assault of a minor under 16 and five counts of lewdness with a child under the age of 14.

Police said that when Perry was in jail three years ago he convinced a young girl to pose for sexually explicit photographs. He then managed to have the photos delivered to him. Police also said he convinced the girl, who was 12 to 13 at the time, to engage in sex acts while on the phone with him.

It is unclear how Perry was able to speak with the girl in such intimate detail while in the North Las Vegas Jail, but his attorney, Barry Levinson, has said Perry had permission to possess child pornography because he was working with the FBI to crack a porn ring.

The photographs were found while authorities were investigating Perry in connection with the Ponzi scheme. He has not been charged in that case.

Police allege Perry told investors he was loaning money to high-roller gamblers who had hit their credit limits at area casinos. Police said he would pay some investors a few hundred dollars a week, saying it was the return on the money they gave him. The weekly payoffs often enticed others into the scheme, which required a minimum buy-in of $10,000, police said.

So far, police have seized more than $23 million from Perry and have compiled a list of more than 800 alleged victims.

Prosecutors say they want more time to investigate that case before proceeding on fraud charges.

Perry will be arraigned on the sex charges by District Judge Michael Douglas on Aug. 16. He is being held without bail at the Clark County Detention Center.