Man suing golf club had previous trouble with regulator

Monday, Feb. 7, 2005 | 11:12 a.m.

Garry Goett, president of the Southern Highlands golf club, said this morning that a court order reinstating privileges to Steven M. Ferguson, a black man suing the club and others for alleged racism, was "not effective ... due to complicated legal reasons."

Goett's lawyer, Mark Ferrario, did not return calls seeking comment this morning.

Ferguson has filed a federal lawsuit alleging that he has been the victim of racial discrimination at the exclusive golf club at the southwestern edge of the Las Vegas Valley. But the case has become more complicated than first appearances because of the discovery that Ferguson has previously made "untrue statements of material fact," according to California business regulators.

At a press conference to announce the lawsuit Friday, supporters of Ferguson announced that U.S. District Judge James Mahan had issued a temporary restraining order reinstating Ferguson's golf club privileges. It also says a hearing for a preliminary injunction is scheduled for Feb. 14.

But Goett said this morning that Ferguson still did not have access to the club.

Ferguson's previous legal troubles are noted in an April 2003 California Department of Corporations cease and desist order. Ferguson and a corporation he was allegedly involved with named Global Venture Group are ordered to cease doing business due to "investments contracts and interests ... offered and sold by means of ... untrue statements of material fact."

The order also mentions that "Ferguson has failed to reveal to his investors that he is a convicted felon." It says that Ferguson was convicted of three charges of grand theft in October 1994.

Ferguson said at a press conference Friday to announce the lawsuit against Southern Highlands Golf Club and assorted related entities and individuals, including Christopher Homes at the club, that the charges contained in the California order "are not true."

Then his lawyer, Ian E. Silverberg, said, "I know you might think this has to do with (Ferguson's) credibility ... but we don't believe it has any relevance to the case or ... has anything to do with acts of racial discrimination."

Ferguson filed the suit Jan. 28 at George Federal Building. The lawsuit alleges that Ferguson was the subject of racial discrimination, including "being referred to as 'n-----' on multiple occasions," according to the lawsuit.

It says Ferguson was exposed to a "racially hostile living environment" at Southern Highlands.

Ferguson and his lawyer would not answer questions about the particulars of the case at Friday's press conference.

Ferrario, the lawyer for Goett, one of the defendants, said: "We believe it (the case) to be without merit and the allegations of racial discrimination to be frivolous."

The lawsuit says Ferguson has lived in the "exclusive gated community known as Southern Highlands ... since December of 2001."

Ferrario cited a previous case filed in September by Ferguson in Clark County District Court where he contested having his membership terminated from the golf club. That suit did not allege that racism had played any role.

On Nov. 12, Ferrario said, the case was dismissed after a judge denied its merits.

"Now he is filing another claim asserting racial motives ... (to) leverage his way back into the club," he said.

Goett said that, according to the club's rules, "we can withdraw membership for anybody at any time ... but when we discovered that he was a convicted felon we decided to withdraw his membership."

Goett added that he had withdrawn club membership before "for white people for other reasons -- including someone who was convicted of a felony while he was a member."

The cease and desist order from the California Department of Corporations alleges that Ferguson "induced a number of different individuals ... to enter into a variety of investment contracts" from early 1999 to "at least December 2002."

It says he did this "by displaying a flashy, opulent lifestyle to prospective investors which caused them to believe his representations that he was a wealthy and successful venture capitalist capable of earning high returns for them upon short term investments."

It says he "transported prospective investors by private jet and entertained them lavishly at ... expensive destinations including ... Zurich, St. Moritz, Las Vegas and the Greek Isle of Crete."

The Nevada secretary of state's Web site lists Global Venture Group Inc. as a corporation in default as of June 1 and indicates that Mike Krokidas is its president.

Silverberg said the issues surrounding Ferguson's corporation have nothing to do with his client's allegations.

"I'm not concerned about them affecting the action," he said.