Rhodes convicted of one count in insurance case

Erica D. Johnson

Wednesday, Sept. 3, 2003 | 9:30 a.m.

The case of the former North Las Vegas councilman charged with insurance fraud ended Tuesday with a guilty verdict on one count but with a hung jury on another.

After deliberating for about two days, jurors declared John Rhodes guilty of one felony count of insurance fraud, but said they could not agree on whether Rhodes was guilty of a second count, intent to obtain money under false pretenses.

District Judge Michael Cherry declared a mistrial on that count, but it was a verdict that pleased prosecutors.

Gerald Gardner of the state attorney general's office said jurors declared Rhodes guilty on the most significant charge, which sends a positive message to the community.

"It's a great victory for public integrity," he said. "People in Las Vegas want to know public officials are held accountable."

Rhodes faces one to four years in prison on that charge when he is sentenced Oct. 28. The second charge carried a potential one- to four-year prison sentence. Gardner said, however, that Rhodes could also receive probation.

By convicting Rhodes of insurance fraud, jurors upheld prosecutors' claims that the former councilman filed a false insurance claim in order to collect money for property he never owned, Gardner said.

The second charge dealt specifically with trying to defraud the insurance company for money, he said.

Gardner said Tuesday it was unclear whether Rhodes would be retried on that count.

"It will be a matter of discussion (by the attorney general's office)," he said.

Rhodes' attorney, Robert Lucherini, declined to comment on the verdict. Rhodes left the courthouse immediately after the verdict was read.

Jurors announced their decision after sending a note to Cherry asking the judge to clarify the word "intent" in the second count, Gardner said.

At that time jurors said they were 10-2 in favor of a conviction, he said.

"The judge said he couldn't supplement the jury instructions," Gardner said. At that time jurors told Cherry that they were "hopelessly hung," he said.

Jurors declined to comment on the case as they left the courthouse.

During the trial prosecutors claimed Rhodes lied to insurance investigators and falsified receipts for items he claimed were stolen from his North Las Vegas home in a reported 1998 robbery.

The items he said were stolen included leather furniture, a personal organizer and a set of Callaway golf clubs he said was worth more than $1,800.

"We believe he filed a false insurance claim to get paid on property he never owned," Gardner said.

The claim, worth $10,200, was never paid. Authorities say Rhodes withdrew it when insurance investigators began questioning the legitimacy of the claim.

Rhodes admitted during testimony to making misleading statements and submitting forged documents to State Farm Insurance regarding the home robbery.

He said North Las Vegas Police officers may have tampered with police reports to make it appear that he claimed the same personal digital organizer was stolen twice, in the home robbery and from his office at North Las Vegas City Council chambers a few months prior.

Rhodes said police may have tampered with the reports because he was in heated negotiations with the Police Officers Association at the time.

A North Las Vegas Police software engineer testified it would be very difficult to alter police reports.