Business briefs for December 20, 2001

Thursday, Dec. 20, 2001 | 10:48 a.m.

Rate-hike hearings set

Three public hearings have been scheduled for next month to allow Southern Nevada consumers to express their views on the two applications by Nevada Power Co. to raise rates by more than $964 million.

The state Public Utilities Commission Wednesday scheduled one of the hearings for Jan 15 and the other two for Jan. 22.

Nevada Power has asked the commission for a general rate increase of $42,7 million to collect 2.9 percent more money. But the rate of the homeowner would rise by 7.9 percent. The increased revenue would be used to cover all operation areas plus the profit margin of the utility.

The second increase calls for $922 million or a 21 percent increase for residential customers to be spread over three years. This application is to recover the higher than expected cost of fuel the company purchased.

The Jan. 15 session starts at 6 p.m. at the Richard Bryan Elementary School, 8050 Cielo Vista Ave. in Las Vegas. The second session begins at 9 a.m. Jan. 22 at the Henderson Convention Center, 200 S. Water St., and the third is also on the same day at 6 p.m at the Winchester Community Center, 3130 S. McLeod Drive, Las Vegas.

Loss widens for golf course operator

All-American SportPark Inc., operator of a lighted nine-hole golf course on Las Vegas Boulevard South, reported a wider loss for the third quarter ended Sept. 30.

The firm reported an operating loss of $65,262, 6 cents a share, on revenues of $595,398. That compares with a loss of $38,209, 3 cents a share, on revenues of $603,042 for the same period a year earlier.

The company owns and operates the Callaway Golf Center, a par 3 golf course and a 113-station driving range on 42 acres at Las Vegas Boulevard South and Sunset Road.

The company said losses were greater because of higher payroll, marketing and utility costs at the golf center. The company also is incurring interest expenses on debt owed to the company's chairman.

Vegas home sales off just slightly

Michigan-based home builder Pulte Homes Corp., the nation's largest home builder after completing a $1.8 billion takeover of Del Webb Corp. of Phoenix in July, said the combined companies sold a total of 1,657 homes in Las Vegas through the first 11 months of the year.

That's down slightly from 1,716 homes in the same period last year.

Pulte said November net sales in the Las Vegas area rose to 61 from 57 last November because of low mortgage interest rates.

Sean Patrick, Del Webb's spokesman, said low mortgage interest rates and increased marketing activity also helped lift November net sales at its two Las Vegas communities Sun City Anthem and Anthem Country Club to 98 from 71 last November.

"We initially expected a large drop in sales because we saw a sharp drop in traffic in the immediate aftermath of the Sept. 11 attacks, so we stepped up our marketing activity," Patrick said. "Of course low interest rates and availability of inventory also helped."

Fraud figure sentenced

The central figure of a Las Vegas investment scam that used fraudulent inducements made in late night television advertisements to dupe investors out of millions of dollars was sentenced to more than eight years in prison Wednesday.

Eric Stein, the former managing partner of the Sterling Group, will serve concurrent sentences of 60 and 97 months following his conviction on 73 counts of criminal activity. Including time served, Stein is scheduled for release in March 2007.

U.S. District Judge Kent Dawson also ordered Stein to pay up to $34 million in restitution to those affected by his illegal activities. Following the conclusion of his prison sentence, Stein is subject to an additional three years of supervised release.

Stein, 43, was arrested near the U.S./Mexico border in February 1999 and later pleaded guilty to 73 counts of a 119-count indictment alleging conspiracy, money laundering and mail fraud. The U.S. Attorney's office said Stein admitted to engaging in a Ponzi scheme in which investors received profits for their investments coming not from earnings of the underlying business, but from funds obtained from new investors. The government said Stein also admitted to participation in money laundering activities.

Nevada Attorney General Frankie Sue Del Papa said the Sterling Group's activities affected more than 2,000 investors and could represent the largest instance of investment fraud in state history.

A federal grand jury in May 1999 indicted nine others on charges associated with the Sterling Group. Charles Randall Lazer and Gary Litt are awaiting trial in April. Michael and Denyse Anderson have been convicted with sentences pending, while five others have been sentenced.