Las Vegas Sun

November 14, 2009

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Partner sued over alleged funds diversion

Jeffrey Libby

Monday, June 3, 2002 | 9:52 a.m.

A majority stakeholder of Commerce Associates, the company developing Tuscany in Henderson, filed suit Thursday against a business partner, claiming that the partner diverted millions of company dollars for his own personal benefit.

In a 22-page complaint filed with Clark County District Court, computer software developer Tom Gonzales alleges that partner Rolland Weddell, a Las Vegas home builder, improperly withdrew more than $10 million from Commerce funds for "his own personal multi-million dollar slush fund."

Gonzales also alleges that Weddell falsely claimed to have invested $5.4 million in Commerce.

Gonzales is suing to recover financial losses, for damages caused by Weddell's alleged fraud and for an alleged embezzlement scheme carried out by Weddell and his son Steven Weddell.

Gonzales and Weddell incorporated Commerce Associates in December 1999 with a plan to purchase and develop a stalled Henderson subdivision, then known as Palm City.

Since that time Gonzales says he has invested $73.6 million in the Tuscany project. Commerce purchased Palm City in January 2000 for a reported $30 million.

Bob Wilson, manager for the Henderson Redevelopment Agency, said he would be surprised if the lawsuit slowed development of Tuscany.

"This is a dispute over small change -- in their world," Wilson said.

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