HOA Nut House

KLAS-TV I-Team

Jonathan Humbert, Investigative Reporter

The I-Team is uncovering new details in the ongoing political corruption probe into homeowners' associations. For weeks, information has been trickling out. Now new details have come to light on how the deals went down and how lax enforcement opened the door for potential corruption.

Over the last few weeks, the I-Team has talked to a number of victims and insiders. They say developer Leon Benzer and his friends hijacked local HOA boards and funneled construction money back to Benzer.

Locked away in public records, you sometimes find nuggets that tell more than meets the eye. The Assessor records for a property in Pebble Creek uncover the possible plans of Leon Benzer and his lieutenants.

They would get a minor stake in a condo, get elected to the HOA board and then give cushy construction contracts back to Benzer. A woman named Riley says she was taken in by one of those lieutenants, Ralph Priola, back in 2006.

Pebble Creek was already doing construction defect litigation with Benzer. Priola was a point of contact. Under the auspices of the lawsuit, Priola asked Riley to sign off on some paperwork.

"I just went in, and signed my name, sign here, sign here, sign here, sign here and that was it," she said.

Only later did Riley learn what happened. She had unknowingly signed a grant, bargain and sale deed giving Priola one-percent of the condo. A few months later, she saw another deed, this time giving Priola 50-percent of the house.

Riley wanted answers, "I needed it to be in the homeowners association."

But then Riley looked at the actual deed and her questionable signature. It wasn't her handwriting, "‘I didn't forge your name. I signed your name.' And I said, ‘That's the same thing.'"

Each time Priola had the documents notarized -- a supposedly legal and above board practice.

Deputy Secretary of State Chris Lee says Riley's case may be textbook abuse. State law requires a notary to get ID's, names and verification of anyone signing anything, and they have to be in the room.

Only this time, that didn't happen. Riley wasn't there and she didn't sign the paper. Lee says that's a big warning sign, "Their job really begins and ends with the signature and making sure the person signing the document is the person who they purport to be."

Since then, Riley has been unable to move in. She says Priola and others have rented her condo out and are actually paying the mortgage, essentially using her name and condo as a front to get into her HOA.

The I-Team also uncovered the same one-percent plan used by Priola at the Chateau Versailles in the northwest. Priola took a one-percent interest at one of those condos as well, looking to join the board. That condo is part of the FBI's ongoing investigation, a probe that now touches every corner of the valley.

Riley spoke over the phone and Eyewitness News has hidden part of her identity because she is afraid of retribution by Benzer and others.

She has contacted the Secretary of State's Office, the Real Estate Division, the City of Las Vegas and the Assessor. They all tell her the same thing -- this is a civil matter and you have to sue.

She simply does not have the money.

Now it may seem that the notary is responsible for letting that alleged forgery get through. We could not find that person anywhere here in Las Vegas. It's unclear if the notary was working with Benzer or Priola.

Now Riley just hopes the FBI investigation will uncover more of these deals.

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