Davidson lawyer scoffs at Kenny’s memory loss

Gentile said Kenny, the government’s star witness in their case against real estate consultant Donald Davidson, had not discussed her condition with her staff or colleagues, even though the illness that she claims caused the loss of memory occurred in 2000, two years before she left office. She first revealed she suffered from memory loss during her initial meeting with federal agents on May 15, 2003.

"The memory loss is a lie," Gentile said. "She knows she can slip and slide with that and get away with it."

And, Gentile said, Kenny’s memory lapse only pertains to certain events.

He also scoffed that an admittedly corrupt former politician could land a job with developer Jim Rhodes as a government consultant. Kenny testified that Rhodes pays her $16,800 a month to work as his consultant.

"Hush money," Gentile told jurors during his closing arguments. "That 16,800 bucks a month that she gets is hush money."

Gentile claims Kenny turned on Davidson because she resented that his former company, Triple Five Nevada Development Corp., reneged on a promise to pay her a "life debt" after she voted in favor of a controversial casino in the Spring Valley neighborhood in January 2000.

Gentile said that Davidson and the company’s owner, Eskander Ghermezian, agreed to pay Kenny $3,000 a month to perform marketing work after the vote. But when Kenny fell ill, the checks stopped, Gentile said. Kenny testified that she continued to receive the money even though she did no work.

Davidson faces charges of mail fraud, wire fraud, money laundering and conspiracy.

The government contends that the 73-year-old Davidson paid Kenny $3,000 a month for nearly three years after she voted for the Spring Valley casino. The indictment against Davidson also accuses him of paying Kenny $200,000 to push through a zoning change allowing a CVS Pharmacy at the corner of Buffalo Drive and Desert Inn Road in 2001. He is also accused of attempting to bribe then-Las Vegas City Councilman Michael McDonald in 2002.

Assistant U.S. Attorney Daniel Schiess told jurors that Davidson’s intent was to deprive Las Vegas Valley residents of honest services from public officials.

During the three-week trial, the prosecution repeatedly played government-intercepted phone conversations involving Davidson. The government wire-tapped the phones of McDonald and former Clark County Commissioner Lance Malone during an investigation into whether strip club owner Michael Galardi was bribing elected officials.

One call, played repeatedly, captured Davidson discussing with Malone a lunch meeting he had with McDonald in April 2002 to discuss two zoning applications in the city. Malone told Davidson that McDonald was uncomfortable with the meeting and asked Davidson how he approached the councilman. "I approached him the same way I did you. I have five dimes to spread around," Davidson said.

"That’s what I think he got nervous about," Malone replied.

Schiess claims Davidson had $50,000 and planned to pay off McDonald for his assistance in pushing through the zone changes. Davidson testified that he received $50,000 in "success fees" when he successfully advocated for zone changes on behalf of developer clients.

"You heard the tapes, you know what they say," Schiess told the jury.

But Gentile said that the recorded conversation was "dangerous," because it included only snippets of the discussion and Davidson’s words were taken out of context.

Gentile explained that McDonald had called Malone twice before that lunch meeting. McDonald asked Malone whether Davidson could drum up campaign contributions from Triple Five Development.

Gentile said Davidson had attempted for months to schedule a meeting with McDonald to establish a relationship with the councilman and discuss potential campaign contributions.

"He could have used better language, he could have been clearer because he clearly scared Michael McDonald," Gentile told the jury.

Gentile pointed out the testimony of McDonald’s community liaison, Douglas Rankin, who was present at the meeting. Rankin told jurors that he was uncomfortable with the conversation, but unsure whether Davidson was offering a bribe.

"If he wasn’t certain it was a bribe, how can you be?" he said.

Gentile told jurors that in 2001, land broker Tommy Fehrman hired Davidson to help with the zone change for the CVS Pharmacy because Davidson had a reputation for overcoming tough zoning issues. He said his client never offered or paid Kenny any money after her vote on the project.

The government claims Davidson’s son, Larry Davidson, established an off-shore bank account for Kenny’s illicit payoff. Donald Davidson provided Kenny’s accountant with his son’s business card.

Gentile said Donald Davidson frequently handed out his son’s cards because he was a struggling attorney. He claimed that Fehrman arranged the $200,000 payment to Kenny, an allegation Fehrman denies.

A year after the CVS vote, Gentile said Kenny’s father, Charles Callin, told her accountant that Kenny expected another $200,000 payment. Gentile argued that the payment was for another controversial zone change at Sunset Road and Tenaya Way. The only common denominator in both the CVS zone change and the second zoning request was Fehrman, Gentile said.

A flood of campaign contributions came in from Fehrman and his partners in the Sunset-Tenaya land deal shortly before the 2002 vote, Gentile said.

Schiess questioned Gentile’s reasoning. He asked jurors why Fehrman would offer Kenny $200,000 after he and his investors contributed hundreds of thousands of dollars to her campaign for lieutenant governor.

"Why pay twice for something?" Schiess said.

The prosecutor suggested that Kenny’s father, who has since died, was confused about the money. At the time Callin made the remark to Kenny’s accountant, she was preparing to transfer her off-shore bank account to a trust in the United States.

Gentile told jurors that Kenny received no illicit funds from Davidson in connection with her Spring Valley vote. He added that the federal government provided no evidence indicating that Malone received a payoff for supporting the contentious project.

Schiess told jurors that after the Clark County Commission in January 2000 voted to approve the casino in the Spring Valley neighborhood, Triple Five Nevada Development Corp. funneled money through Davidson’s bank account so he could pay off Kenny and Malone.

Schiess said Davidson was frustrated because he had to pay taxes on the money, even though the payments went to the elected officials. Kenny received $3,000 a month through 2002. It is unclear how much Malone was paid.

In a September 2001 phone conversation secretly recorded by FBI agents, Davidson expresses to Malone his displeasure with Ghermezian, the billionaire Canadian who owned Triple Five Development.

"Do you remember when we were goin’ through the casino thing and E.G. made us a very, very, very large financial commitment to you and I, do you recall that?" Davidson said. "Two fifty."

Davidson testified that he and Malone were discussing a security and property management business that Ghermezian promised to fund. He said he was struggling to get startup funds out of Ghermezian.

Schiess asked jurors why Davidson didn’t simply tell Malone that Ghermezian hadn’t supplied the startup funds for the new business they were organizing.

"Not a single word from his mouth or Malone’s mouth about a security business," Schiess told jurors. "They spoke in veiled terms."

Schiess said the first time Malone and Davidson raised the idea of the security business with Ghermezian was in April 2001. Davidson testified that because of legal wrangling and an appeal by neighbors, the casino project was dead by November 2000.

When the recorded conversation took place, Schiess said, neither Malone nor Davidson had put any substantial money into the business.

Throughout the trial, prosecutors questioned why Davidson withdrew large amounts of cash from his bank account after important votes on his projects.

Schiess contends he used the money to pay off Kenny. Gentile did not address the cash issue Tuesday, but Davidson’s wife explained earlier this week that her husband prefers to use cash over credit cards.

Schiess pointed out to jurors that Davidson’s testimony changed during the two days he was on the stand.

"What was your gut reaction about his testimony? How many times did he change his testimony?" Schiess asked jurors. "What he did is try to fashion his testimony, tailor it to fit the evidence."

But Gentile urged jurors to consider his client’s age and ability to remember details of conversations that occurred six years ago. Gentile said Davidson grew tired during his two days on the witness stand.

"He became easy game for a skilled prosecutor," Gentile said.

Gentile questioned whether jurors could actually trust Kenny, who suffers from severe memory loss, still is paid a generous amount of money per month and has testified to pocketing bribes in exchange for votes.

"Being in the same room with her, you would get a creepy-crawly feeling all over your body," Gentile said.