FBI probe might be turning to developers

Jace Radke

Thursday, Nov. 20, 2003 | 9:55 a.m.

Earlier this month the FBI subpoenaed documents from local attorney Larry Davidson, apparently as part of another investigation that developed out of the political corruption investigation that resulted in indictments of one current and three former Clark County commissioners.

Davidson would not comment on the nature of the documents taken, saying that there are issues of attorney-client privilege involved, but sources have said that the government continues to investigate developers in connection with the probe.

Davidson's father is Don Davidson, vice president of Triple Five Development Corp., but the younger Davidson would not say whether the subpoenaed documents have anything to do with land development, his father or Triple Five.

"It was just a few pieces of paper that were records having to do with my clients," Davidson said.

Davidson said that he was not told by agents that he was a target or subject in the political corruption investigation that resulted in federal indictments against Clark County Commissioner Mary Kincaid-Chauncey and former Commissioners Dario Herrera and Lance Malone.

The indictments allege that the three politicians took money and gifts from strip club owner Michael Galardi in exchange for political favors. Galardi and former Commissioner Erin Kenny have already pleaded guilty to charges in connection with the probe.

Dominic Gentile, who represents Malone and Don Davidson, has said in the past that he believes the FBI is investigating developers as part of the probe.

Don Davidson refused to say if the FBI has notified him of being a target or subject of the probe.

"I'm referring all questions on this subject to my attorney," Davidson said Monday.

Gentile, who has also confirmed that Triple Five hired Kenny as a consultant after she lost her race for lieutenant governor last year, said he didn't understand the sudden interest in Davidson.

"I am his attorney, but beyond that I really don't have anything to say," Gentile said. "Nothing is going on."

County officials have said repeatedly that they do not know of any FBI scrutiny of developers or land-use issues outside of the adult-use ordinances that the agency targeted in its indictments here and in a parallel investigation in San Diego.

"At this time we've had no requests and no visits pertaining to land-use issues that are not associated with the adult-use industry," County Manager Thom Reilly said Monday.

However, sources close to the investigation have said the federal investigators have been interested in at least one development proposal that the Clark County Commission approved but was overturned by a state panel.

In January 2000, then-Commissioners Malone and Kenny joined Kincaid-Chauncey in approving the needed zoning for Triple Five's proposed neighborhood casino in the Spring Valley area of southwestern Las Vegas, a project vehemently opposed by hundreds of residents in the area.

Herrera voted against the zoning for the casino. Commissioners Bruce Woodbury, Myrna Williams and Yvonne Atkinson Gates abstained on the issue.

Three months after the commission approval for Triple Five's zoning, a state panel ruled that the approval contradicted state law governing new neighborhood casinos near residential decisions and overturned the commission decision. A District Court upheld the state panel's judgment, effectively killing the casino project.

Mark Fiorentino, attorney for Triple Five during the debate over the proposed Spring Valley casino, said Monday that he has never been contacted by federal investigators on any issue affecting the company.

Triple Five, which has offices in Las Vegas, is owned by the Ghermezian family of Edmonton, Alberta. The family is also the developer of several malls in the Las Vegas Valley, including Boca Park, Colonnade Square and Village Center Square.

The family also developed the world's largest mall, in Edmonton, and the largest mall in the United States, the Mall of the Americas outside Minneapolis.