Nancy Quon's fire-damaged home lures no bids

Article Courtesy of The Las Vegas Review-Journal

By Jeff German

Published December 2, 2011  


The fire-damaged home at the center of the arson and insurance fraud case against attorney Nancy Quon was put up for public auction this week, but there were no bidders.


So the Florida-based mortgage company, which had foreclosed on the two-story Rhodes Ranch home, took it back.


Western Progressive, LLC, the trustee for the sale, had sought a $390,000 opening bid.


The failed sale effort follows a hefty $462,787 lien the Internal Revenue Service has filed against Quon over failure to pay taxes on income she earned as a prominent construction defects lawyer in 2009.

Her criminal defense lawyer, Thomas Pitaro, declined comment Tuesday on the latest developments.

Quon, 51, who reportedly once brought in more than $100 million in legal revenues, has been on a downward slide since she became a target more than three years ago in the sweeping federal investigation into fraud and corruption at Las Vegas Valley homeowners associations.

She testified under oath in the insurance investigation into the Oct. 28, 2010, fire that she had defaulted on $700,000 in loans on the 4,500-square-foot home to obtain lower mortgage rates.

A Clark County grand jury indicted her in August on a series of felony charges, including first-degree arson, conspiracy and insurance fraud stemming from the fire, which caused $250,000 to $300,000 in damage to the home.

County prosecutors alleged that Quon set the fire in a botched suicide attempt to escape the pressure of the mounting federal investigation. 

Nancy Quon is a target in the federal investigation into fraud and corruption at Las Vegas Valley homeowners associations.

Paramedics revived an unconscious Quon at the scene of the fire and concluded she had overdosed on drugs.

The nine-count indictment also charged Quon's live-in boyfriend, former Las Vegas police officer William Ronald Webb, 43, in the arson conspiracy.

The indictment accuses Quon of "wilfully" and "maliciously" setting fire to the home. Then, with Webb's help, Quon defrauded State Farm Insurance into paying for temporary housing for the couple and structural repairs to the home knowing that the fire was not caused by accident, the indictment alleges.

Quon has denied setting the fire and trying to kill herself.

During the course of the investigation, Las Vegas police learned that Quon had hidden away roughly $5.6 million in offshore accounts. She paid publicist Mark Fierro more than $100,000 from those accounts to influence media coverage of her criminal cases, prosecutors alleged.

Lately, Quon has been locked in a battle with State Farm over its failure to pay her $250,000 to $300,000 for damage to the contents of the home.

Quon had obtained a preliminary injunction to prohibit State Farm from questioning her further under oath about the fire. She contended the questioning could force her to assert her Fifth Amendment rights to avoid incriminating herself in the police investigation of the fire.

A district judge, however, recently ruled that the insurance company had a right to ask Quon more questions.

Quon is facing other civil legal action.

SMS Financial, an Arizona debt collector, is suing her in District Court to recover several million dollars worth of defaulted loans her law practice took out to pay the cost of pursuing construction defect litigation.

Her law office landlord, Sahara Plazas, has filed a lawsuit against her and has said she owes rent.

Quon has not been charged in the federal homeowners association investigation, but prosecutors have been working out plea deals with defendants aimed at getting their cooperation against higher-level players in the massive scheme to profit from the takeover of associations.

Federal prosecutors have alleged that the co-conspirators stacked homeowners association boards with members who pushed for construction defect lawsuits against builders. The boards then steered legal and construction repair work to the co-conspirators.

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Fourth person pleads guilty in HOA fraud probe

Third person pleads guilty in HOA fraud probe

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