Wednesday, Jan. 10, 2001 | 11:15 a.m.
North Las Vegas City Councilman John Rhodes has beat a charge of felony fraud by the district attorney's office, but he's not yet off the hook.
Valerie Adair, chief deputy district attorney, said prosecutors believe Rhodes did not commit a crime when he sought reimbursement for a Palm Pilot by the city, but the office still has an active investigation on the councilman.
The investigation involves "collateral issues" that were brought up in the North Las Vegas Police Department affidavit filed against Rhodes in November, Adair said, refusing to give further detail. The investigation does not relate to the Palm Pilot reimbursement that was the focus of the affidavit, she said.
"We are looking into some information that probably won't amount to anything but was needed to be looked into further just to make sure," she said.
Rhodes still faces four felony charges by the state attorney general's office insurance fraud unit, related to two alleged burglaries of his home.
If Rhodes is convicted of a felony, he will be required to step down from his council seat. Rhodes, whose term expires in July, has said he plans to run for re-election.
No trial date has been set, but it is expected to occur after the city's general election.
Police began investigating Rhodes after the Sun reported that the same receipt he had turned in to the city for reimbursed of a Palm Pilot was also submitted to Rhodes' personal insurance company for reimbursement after an alleged home burglary.
The police department submitted its case to the district attorney's office asking for one felony charge of attempting to defraud the city or obtaining money under false pretenses.
In her decision, Adair said Rhodes did not commit a crime when he asked to be reimbursed for the Palm Pilot in July 1998, because then-City Manager Pat Importuna did not know Rhodes had previously reported that a hand-held computer was stolen from his council office.
Instead, Importuna said Rhodes asked to be reimbursed $460 for a Palm Pilot and battery he had purchased for his council duties. Importuna said he signed the paperwork with no questions.
Importuna, who is now the city manager for the city of Cypress, Calif., abruptly resigned in February, one year into his six-year contract.
The former city manager told the district attorney's office that he did not know Rhodes had reported a burglary to his council office until after the reimbursement was made.
Adair said investigators found "ample evidence" that there was no burglary of Rhodes' council office, but the district attorney's office is not sure it can prove that beyond a reasonable doubt.
It was "certainly suspicious," Adair said, that Rhodes reported a burglary in which a hand-held computer was stolen two weeks before he asked the city for reimbursement of another hand-held computer.
Adair said the office found that Rhodes never reported his credit cards or checks stolen after the alleged burglary to his office, although the items were reported stolen on the police report.
But after July 15, 1998, the day of the alleged burglary, the credit cards and checks were never used again, she said.
Claiming a small victory, Rhodes' attorney Robert Lucherini said Tuesday he was glad the district attorney's office took the time to look at the case and explore the evidence.
"I don't think he committed a crime. I guess the D.A. is in agreement," he said.
Rhodes still faces the four felony charges of insurance fraud. District Judge Michael Cherry will hear a motion Jan. 18 to dismiss two of the felony counts against Rhodes.
"I'm confident that at the end those who are going to judge the case are going to come to the same conclusion that we have, that a crime has not been committed," Lucherini said.
Deputy Attorney General Greg Hojnowski said he will use the district attorney's case file as part of the prosecution against Rhodes.
"Any information that pertains to the Palm Pilot certainly would be something we would look to present," he said.
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