HUD suspends indicted developer

Wednesday, Dec. 14, 2005 | 9:03 a.m.

The Housing and Urban Development Department has suspended developer Donald Davidson from the Las Vegas Housing Authority board and from doing any business with the federal government, according to documents the Sun has obtained.

The decision, called "very uncommon" by HUD spokesman Larry Bush, will remain in effect until a federal indictment of Davidson and his son, Lawrence, is resolved. The Nov. 22 indictment alleges that Davidson bribed then-Clark County Commissioner Erin Kenny with $200,000 in 2001 to vote in favor of a proposed CVS Pharmacy at Buffalo Drive and Desert Inn Road.

The suspension is effective immediately. Las Vegas Mayor Oscar Goodman will appoint a new housing panel member as soon as possible, board Chairman Bobby Gronauer said.

Gronauer, who was informed of the decision in a letter dated Dec. 13, called the announcement "an embarrassment" for the agency.

He said the "federal government could have gone two different ways -- disbarred him or suspended him." Suspending Davidson was the better choice for all concerned, Gronauer said.

"Still, of course I would rather that none of this had happened," he said. "We don't need any more bad press."

Gronauer, who also is the Clark County constable in charge of evictions, said the Las Vegas Housing Authority was "working its butt off ... (and was) head and shoulders above the other (two) housing authorities in the valley."

Davidson is the second person lost to the board this year, after Federal Public Defender Franny Forsman resigned in protest when authority Executive Director Parviz Ghadiri's contract was renewed in July.

Davidson's attorney, Dominic Gentile, declined comment on HUD's decision. Gentile said he does not believe that his client currently has any business dealings with the federal government.

Bush said that he could not recall the last time his agency suspended a board member in any of the nation's 3,300 housing authorities because of a federal indictment.

If Davidson is convicted, he would be permanently excluded from the board and from doing any business with the federal government, Bush said.

Timothy Pratt can be reached at 259-8828 or at timothy@lasvegassun.com.