Fraud suspect hit with 517 charges

Kim Smith

Monday, Jan. 21, 2002 | 9:51 a.m.

When told Ponzi scheme suspect Franklyn Perry was indicted Friday on 517 fraud-related counts, Las Vegas resident Kenneth Conner was elated.

"I think it's great. Burn him at the stake," the 33-year-old father of two said. "He ruined a lot of people's lives."

Perry, who is already being held without bail on 48 sex-related charges, was indicted on 172 counts each of securities fraud, sale of unregistered security and theft. Some of the counts allege the victims were 65 or older, thus doubling any potential sentence.

According to the 276-page indictment, which was unsealed Friday in District Court, Perry, 61, also faces one count of conspiracy to commit securities fraud or theft.

Also indicted on identical charges were Sherri Kamimura and Maria Shaw-Pimentel. Laurent alleged that the women were hired by Perry as receptionists and they wrote contracts and made payments for him.

Chief Deputy District Attorney Christopher Laurent said the grand jury voted to indict Perry after hearing testimony from about 50 of Perry's alleged victims over eight days.

Perry is accused of bilking almost 1,100 people from around the world out of about $40 million. Police have recovered between $22 million and $23 million, plus real property, such as cars and boats.

Most of the grand jury witnesses were locals who were among his victims, Laurent said.

"We wanted to get the flavor and the magnitude of the case, but without creating an overwhelming burden for the county financially or by tying up the court system," District Attorney Stewart Bell said.

Bell said he has never been involved in a case with so many counts. Nor has he seen a case with so much money involved.

Defense attorney Michael Cristalli, who represents Perry on the sex-related charges, said Friday he intends to ask to be appointed to the new case as well.

He declined to comment further, saying he has yet to see the indictment.

Police allege that Perry told prospective investors he was loaning money to high-roller gamblers who had hit their credit limits at area casinos. He would say that for a minimum loan of $10,000, investors would get an incredible return.

Perry, police said, would pay some investors a few hundred dollars a week, saying the payments were returns on the money they had loaned him. The weekly payoffs would then often convince others to buy into the scheme.

Laurent said one Australia resident invested $5 million by himself. Others bought in as part of a pool.

"I think some of the witnesses will say, and the evidence will bear out, that Mr. Perry is slick," Laurent said. "His scheme convinced many people to invest, including many savvy businessmen."

Conner, a heavy equipment operator, said he heard about Perry through the grapevine. Many people in the construction business invested in the scheme, believing it was too good to pass up, Conner said.

"The money was going to be really good," Conner said. "Within six weeks time you were supposed to double your money."

It didn't turn out that way, however. Perry was arrested two weeks before Conner was to see his return.

"It wiped out my savings," Conner said, declining to name a figure. "My fall-back money disappeared."

Conner considers himself lucky when compared with the many elderly people who reportedly lost their life savings to Perry. At 33 Conner has plenty of time to recoup.

Conner said investors are hoping to get 50 cents on the dollar back as the result of civil litigation, but they aren't counting on it.

"It was definitely a learning experience," Conner said.

Securities fraud and sale of unregistered security are punishable by one to five years in prison. Theft is punishable by one to five years or one to 10 years in prison, depending upon the amount allegedly stolen.