Seized loot to get special master

Friday, Nov. 23, 2001 | 9:49 a.m.

A special master will be responsible for the $22 million seized from a Las Vegas man accused of bilking more than a thousand investors in a Ponzi scheme.

District Judge Mark Denton Wednesday met with Franklyn Perry's attorneys and the Clark County district attorney's office to decide who should be responsible for ensuring the money seized from Perry is invested safely, pending the outcome of Perry's upcoming criminal and civil trials.

The district attorney's office is acting in the interest of Perry's alleged victims, while Perry has filed a civil lawsuit against Metro Police claiming they seized the money illegally.

All of the parties agreed Wednesday a special master should be found who can best advise Denton as to how the money should be handled. The attorneys will supply the judge a list of three financial consultants and the judge will pick one.

Chief Deputy District Attorney Michael Davidson said he believes the money will ultimately be placed into certificates of deposits or some other type of safe investment program.

Police allege that Perry, as part of a Ponzi scheme, told investors he was lending 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, calling it returns 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.

The district attorney's office and Metro are still investigating the case in the hopes of presenting it to a grand jury or to a judge.