LAS VEGAS
A federal judge today sentenced a former construction boss to 15 years and eight months in prison for his role in a $58.1 million scheme to fraudulently gain control of condominium homeowners’ associations to land construction and other contracts for himself and others, officials said.
Forty-two individuals have been convicted of crimes in connection with the scheme, according to officials.
Leon Benzer, 48, plead guilty on Jan. 23 to one count of conspiracy to commit mail and wire fraud, 14 counts of wire fraud, two counts of mail fraud and two counts of tax evasion. In addition to imposing the prison term, officials said.
U.S. District Judge James C. Mahan also ordered Benzer to pay restitution in the amount of $13.2 million, according to authorities.
In his plea deal, Benzer admitted that from August 2003 to February 2009, he and an attorney developed a scheme to control the boards of directors of Home Owners Associations in the Las Vegas area, officials said.
According to plea documents, Benzer and his co-conspirators recruited straw buyers to purchase condominiums and secure positions on HOAs’ boards of directors.
Benzer admitted that he paid the board members to take actions favorable to his interests, including hiring his co-conspirator’s law firm to handle construction-related litigation and awarding remedial construction contracts to Benzer’s company, Silver Lining Construction, according to authorities.
“Leon Benzer recruited and paid off puppets to serve on homeowners’ boards so that they would steer lucrative contracts to his company and cronies,” said Assistant Attorney General Leslie Caldwell. “Far from enjoying their corrupt proceeds, however, Benzer and his co-conspirators will serve years behind prison bars.”
The FBI investigated this case.