It Didn’t Stay Here: Detroit nonprofit CFO spent stolen funds on Las Vegas

It Didn't Stay Here

William A. Smith (courtesy Detroit Riverfront Conservancy)

See update at end of story

In 2021, William A. Smith, a nonprofit chief financial officer from Detroit, blew more than $100,000 on a personal two-day trip to Las Vegas. The private jet alone cost $94,000. In that short period Smith charged nearly $14,000 at Drai’s Beach Club and Night Club on the roof of the luxury Cromwell Las Vegas hotel-casino, where he stayed.

How do I even know these numbers, and why do I care? Detailed court filings, my friends. Smith pleaded guilty last year to embezzling an astonishing $44 million over 12 years from the Detroit Riverfront Conservancy.The agency has been redeveloping the 5½-mile-long Detroit River waterfront facing Canada with public and private money. Smith is to be sentenced April 24 in Detroit federal court on wire fraud and money laundering counts. The feds are asking District Judge Susan DeClercq for a sentence of 18 years in prison and restitution of $44.3 million, mostly to the nonprofit.

So Smith, 52, becomes the newest candidate for my long-running list, It Didn’t Stay Here. The roster consists of folks in trouble elsewhere for something that happened in that bug light of mischief called Las Vegas (here, the spending of funds stolen from someplace else). The list is a pointed refutation of “What Happens Here, Stays Here,” the famous marketing slogan the Las Vegas Convention and Visitors Authority used for many years. You can see a list of the nominees nearby.

In Smith’s case the Sin City piece, entirely funded from that stash, is pretty small beer. But it’s a concoction far-away prosecutors historically have been powerless to resist in drafting such criminal court filings for public, ah, consumption.
Continue reading

Move over, Las Vegas: Trump is funding his own mob museum–mob-style

The Mob Museum, Las Vegas

Everyone knows the line. “I’m gonna make him an offer he can’t refuse,” the powerful mob boss Don Vito Corleone (played by Marlon Brando) says in the celebrated 1972 movie “The Godfather” about intimidating a Hollywood studio executive. Soon, the executive finds the severed head of his prized race horse next to him in bed, and acquiesces.

I’ve been thinking about those scenes as I read multiple news accounts about how President Donald J. Trump is raising money for a future presidential library/museum. His m.o.: Using clearly flimsy lawsuits, his new power from gaining a second term and implied threats to extract large cash settlements from large media companies, and perhaps others, for his future baby.

You see, the New to Las Vegas world headquarters is just a few miles from the National Museum of Organized Crime and Law Enforcement. The 13-year-old edifice in downtown Las Vegas is better known simply as the Mob Museum. I’ve toured the facility, which has terrific exhibits. In my view some of the material therein has described activities not all that far off from what Trump has been doing. His choice of fundraising tools is extortion, racketeering, or at least, in my view, something pretty close to that.

Any honest accounting in a museum of Trump’s full life would have to include the fact that our 45th and 47th president is a convicted felon (a status that even Don Corleone cleverly avoided in the movie and the underlying book of the same name by Mario Puzo), a prodigious liar and a cheat. Over the years Trump has done business with organized crime while speaking favorably of mobsters. “I have met on occasion a few of those people,” he told David Letterman in 2013. “They happen to be very nice people.”

So Trump might become the first person I know of to help fund what amounts to a personal monument using mob-like shakedown techniques. Continue reading

In Las Vegas, a last hurrah for the brain surgeon who lived in his own ‘hoarders’ museum

Lonnie Hammargren

People wait to get into the Lonnie Hammargren yard sale

Once again, there were long lines today outside the Las Vegas compound of Lonnie Hammargren. He was the late Las Vegas brain surgeon and Nevada lieutenant governor far better known nationally in his later years as a hoarder extraordinaire. Hammargren lived among his relics of un-curated collected junk and once a year opened his three-house spread to gawking visitors, museum-style.

Hammargren died in 2023 at age 85. The occasion today was the start of what was billed as a downsizing three-day “yard sale” of some of his, ah, heirlooms.

Walking the dog, I watched the line stretch around the corner as folks waited patiently in sunny, pleasant weather for as long as 30 minutes to gain access to the event, which was promoted mainly on Vegas-area websites. I saw a few people leave with unremarkable knick knacks–an old Monopoly set, office desk baskets, undistinguished wall hangings. Visitors were told there would be a later formal auction for some of the more notable items, perhaps including a Batmobile replica parked outside the compound for years.

But most attendees I saw exited the grounds empty-handed, a few just shaking their heads. “It was just stuff,” one woman wearing a Vegas Golden Knights sweatshirt told me.

To really understand what was going on, it’s necessary to know something about Hammargren. I wrote an obituary in this space shortly after his death. With very slight modifications, it’s reprinted below.

Continue reading

After my query, Las Vegas fallen-cop charity amends public tax return, boosting transparency

Las Vegas fallen-cop charityThe Injured Police Officers Fund, which raises and provides money to families of Las Vegas-area cops injured or even killed in the line of the duty, is the real deal. This honest organization really sails above the rest in a sea of local law enforcement fundraising money shenanigans.

This ocean includes former Las Vegas councilwoman Michele Fiore. She’s scheduled to be sentenced next month following a federal-court fraud conviction for diverting to personal use money she raised for a fallen-officer monument. One of her marks–first revealed here–included an unknowing Joe Lombardo, then the Clark County Sheriff and now the governor.

This ocean includes Thomas Kovach. He has pleaded not guilty to charges he secretly siphoned off money raised by the Metropolitan Police Department Foundation, which he ran, to another nonprofit paying him a nice salary.

This ocean includes a school of national faux charity political action committees that sport law enforcement names but spend almost no money raised on their stated missions. They also regularly solicit Las Vegas residents on the telephone in blatant violation of a 2021 state law requiring pre-registration and filings, with the main regulator, the Nevada Secretary of State’s Office, essentially doing very little regulating but completely escaping accountability (except from me).

The 43-year-old IPOF does absolutely none of this bad stuff. And to its credit it just filed an amended public federal tax return after the New to Las Vegas world headquarters–that’s me, folks–pointed out that some required data was left out of its original filing. The new information explains a little more clearly what money passes through IPOF and how it is spent. In my view, the original omission amounted to nothing more than a little sloppiness. Continue reading

Nevada regulator admits dropping the ball in policing illegal faux charity pitches

faux charityWay back in 2021, the Nevada Legislature passed a law greatly expanding the regulation of fundraising beyond traditional tax-exempt charities. For the first time, almost any kind of non-religious outfit purporting to solicit money within the state–usually on the phone–benefiting various specified causes was barred from doing so without first registering with the Secretary of State’s Office (SOSO) and making financial filings. The enumerated causes included law enforcement, fire fighting, public safety, public health, patriotism, and anything else that sounds like a charitable mission. Also–and crucially–for the first time, the SOSO was given broad authority to issue cease-and-desist orders and issue civil financial penalties, which would also draw public attention to any culprits.

A huge number of these outfits were what I call faux charities (others call them scam charities). These are political action committees, poorly regulated at the federal level, that sound like charities when they cold-call you asking you for money but aren’t. Instead, they spend almost all the money raised in fundraising expense and hidden fees for their operators, generating terrible financial efficiencies. Donors get rooked. These telemarketers, who employ computer-generated voices using soundboard technology, operate nationally, but they seem to find fertile ground in Nevada.

I’ve been writing about these operators and their activities in Nevada for a long time, focusing on the many who were dumb enough to call me–often repeatedly–at the New To Law Vegas world headquarters. (You can find my coverage by entering “faux charity” in the nearby search box.) There undoubtedly have been tens of thousands of such calls over the years to my fellow Nevadans. I’ve yet to find even one of these telemarketers properly registered in the state.

The law, known as Senate Bill 62 and codified at Nevada Revised Statues 82A.025 et seq., took effect on October 1, 2021. On its face, the measure put Nevada in the vanguard of consumer protection on this issue. Ha! Knowing something of the historically weak commitment to effective charitable regulation–or any regulation–by the SOSO, I wrote in this space just 12 days after the law took effect, “Let’s all join the watch party … We’ll see if Nevada regulators invoke their brand new law requiring registration before soliciting.”

On August 2, 2024, I filed a request with the SOSO for information under the Nevada Public Records Act. The agency repeatedly blew a number of statutory deadlines and rules for responding to my request. Finally, the SOSO last week admitted to me in writing just how many civil penalties the agency assessed under the law through December 31, 2024, a time period covering the heyday of faux charity calling.

Zero.

The SOSO also finally admitted to me how many cease-and-desist letters the agency issued to errant fundraisers under the law through December 31, 2024.

Zero. Continue reading

In Las Vegas, how about a perp pool on when the first Trump pardonee gets re-arrested?

perp pool

Jimmy Hoffa (via Wikipedia)

See updates at end of post

A half-century ago, I was part of a ghoulish office pool started in the Philadelphia bureau of the Associated Press, where I worked at the time. On what day of the week would Jimmy Hoffa’s body be found? He was the convicted, mobbed-up ex-Teamsters Union president who suddenly vanished after leaving a Detroit-area restaurant in 1975. His disappearance quickly became a national sensation. It was widely believed–then and now–Hoffa was done in at the behest of one of his supposed organized crime cronies.

Six of us hacks each pitched in $5.00 (about $30 in today’s dollars). I chose Saturday.

As it turned out, Hoffa’s remains were never found. He’s still missing. So no one won the office pool (except my supervisor, who didn’t return the wagers even though there was no “winner”). Hoffa was legally declared dead in 1982, although the case officially is still open.

The Hoffa bet popped into my mind amid the big news last night that newly re-inaugurated President Donald J. Trump pardoned or commuted nearly 1,600 rioters who had a hand in storming the Capitol in Washington, D.C., on January 6, 2021. Those receiving his grace included several convicted of seditious conspiracy.

Since I’m now New to Las Vegas, let’s start a new pool. In what month going forward will the first of these releasees be re-arrested on charges of committing another criminal act of some kind? In my view, with such a large universe of suddenly emboldened suspected hooligans for whom law and order has proven to be an elusive concept, it’s certain to happen. Just a matter of when.
Continue reading