Corruption trial might key on taped phone call
A fabricated telephone conversation in which former Clark County Commissioner Erin Kenny was recorded discussing a $200,000 bribe is expected to be a sticky subject in the upcoming trial of real estate consultant Donald Davidson.
Davidson was indicted in November 2005 on charges related to paying Kenny the money in exchange for her successful effort to execute a zone change that allowed a CVS Pharmacy adjacent to a west valley residential neighborhood.
Davidson’s trial is scheduled to begin today.
Kenny, who pleaded guilty to political corruption charges in 2003 and is expected to testify at Davidson’s trial, is cooperating with federal agents in the ongoing political corruption probe.
After signing a plea deal, Kenny participated in a taped call between herself and an FBI agent who posed as her father.
The two discussed a payoff Davidson is alleged to have offered in exchange for her CVS Pharmacy vote.
Although Davidson’s attorney, Dominic Gentile, has not disclosed any defense strategy, Assistant U.S. Attorney Daniel Schiess filed what appears to be a peremptory challenge to using the tape.
"The FBI played the recording for Davidson during its only interview with him in order to encourage him to confess. Davidson did not confess," Schiess wrote in a pretrial document. "The defendant is not permitted to play the recording to attack the government’s credibility for using a ruse."
Schiess defended the staged phone conversation.
"Law enforcement is entitled to use deception in furtherance of law enforcement strategies," Schiess wrote.
If Davidson wishes to play the recording for jurors to prove he made no incriminating statements when he was arrested, he must take the stand and subject himself to cross-examination, according to Schiess’s motion.
"Defendants are not prevented from introducing evidence necessary to put on their defense, but they must do so by testifying," Schiess wrote. "Defendants cannot place self-serving prior statements before the jury without subjecting themselves to cross-examination."
Gentile did not return a phone message left at his office Friday.
Prosecutors also plan to introduce statements made by Kenny’s late father, Charles Callin.
In 2001, Davidson agreed to help a developer rezone a parcel at the corner of Buffalo Drive and Desert Inn Road to allow the drug store. He elicited the help of Kenny, who lobbied her County Commission colleagues to approve the zoning designation, despite strong opposition from neighbors.
According to court documents, Davidson received a 15 percent interest in the partnership that owned the land, and $200,000 that was ultimately funneled to a private trust established for Kenny.
At the same time, Callin told Kenny’s accountant Dan Geiger that "Kenny would receive a substantial amount of money if a vote went a certain way," Schiess wrote.
Geiger has pleaded guilty to one count of honest services fraud. He is scheduled to be sentenced Sept. 21.
Donald Davidson’s son, Lawrence Davidson, set up the trust fund, according to court documents.
"Davidson caused $200,000 to be sent to Lawrence Davidson who used most of the money to fund the trust," according to court documents.
Lawrence Davidson, a former Las Vegas attorney, also was charged. The father and son initially were to go to trial in October, but Lawrence Davidson was a no-show.
An arrest warrant was issued against the younger Davidson. Federal authorities said they are not actively searching for him.
A second superseding indictment issued in October 2006 included additional charges against the elder Davidson, accusing the real estate consultant of attempting to bribe then-Las Vegas City Councilman Michael McDonald.
Federal investigators recorded a telephone conversation between Donald Davidson and former Clark County Commissioner Lance Malone about a zone change Davidson sought for a commercial center in the city of Las Vegas. Davidson called McDonald for assistance on the proposal.
After the April 2002 phone call with Davidson, McDonald called his friend and former high school coach, Bruce Bayne.
"Son of a bitch tried to bribe me," McDonald told his coach, according to transcripts.
"What?" his coach replied.
"He tried to bribe me," McDonald said.
In May 2002, Donald Davidson described his phone conversation to Malone.
Malone: "Well, what did you guys discuss? How did, I mean, well, I, I’d rather see you in person to find out, because he wouldn’t tell me over the phone how you approached him on it."
"I have five dimes … to spread around," Davidson said.
"OK. That’s what I think he got nervous about, buddy," Malone said.
Malone, Kenny and former Clark County commissioners Mary Kincaid-Chauncey and Dario Herrera were indicted in 2003 on charges of accepting bribes from strip club owner Michael Galardi.
Kincaid-Chauncey and Herrera were convicted last year and are serving 30 months and 51 months, respectively, in prison. Malone signed a plea agreement days before his trial was scheduled to begin in September 2006. He received a six-year sentence after pleading guilty to serving as Galardi’s bagman, and delivering cash bribes to Kenny, Herrera and Kincaid-Chauncey.
Galardi, who signed a plea agreement in 2003, was sentenced to 30 months in prison. Galardi is scheduled to self-surrender on Friday, but has requested a delay. According his attorney, Galardi needs additional time to put his affairs in order. His longtime accountant recently died and Galardi needs oral surgery, according to court documents. The government has opposed the motion, and U.S. District Judge Larry Hicks had yet to make a ruling Friday afternoon.
Kenny is scheduled to be sentenced on July 11. Kenny’s sentencing has been delayed eight times, in large part because of postponements in Davidson’s trial.
Davidson’s trial is expected to last about two weeks.