Federal prosecutors pursue Las Vegas businessman

In the past three years, federal prosecutors have obtained three indictments against high-rolling Las Vegas businessman Ramon DeSage, each time adding new charges related to a massive scheme to defraud investors.

And they’re back for more.

A federal grand jury has issued subpoenas for witnesses to testify and provide records of transactions involving DeSage and his luxury gifts supply business on the Strip, according to court documents obtained by the Las Vegas Review-Journal.

This comes as other court documents have disclosed for the first time the names of several people, including former longtime casino executive William Richardson, who allegedly lost tens of millions of dollars investing with the internationally known DeSage.

Richardson, now a prominent developer with ties to the casino industry, is alleged to have lost nearly $40 million in the scheme.

DeSage, 64, also known as Ramon Abi-Rached, was last charged with 52 counts of conspiracy, wire fraud, money laundering and tax evasion. Prosecutors say he defrauded his investors out of roughly $190 million and the IRS out of $31 million.

The scheme revolved around DeSage’s Las Vegas company, Cadeau Express, and other companies between 2005 and 2012, according to the last indictment.

DeSage pocketed the money to repay earlier investors, maintain his wealthy lifestyle and cover millions of dollars in gambling losses at casinos along the Strip, some of which he supplies with high-end customer goods, the indictment alleged.

Millions of dollars were laundered through several casinos, including Wynn Las Vegas, Caesars Palace, The Venetian, Planet Hollywood, Hard Rock Hotel and Green Valley Ranch Resort, according to the indictment.

The new grand jury investigation was revealed in recent court papers filed by Peter Akaragian, a co-defendant and accountant for the Lebanese-born DeSage.

Defense lawyer Tony Sgro moved in the papers to quash a grand jury subpoena Akaragian received in April for financial documents dating to 2010 involving DeSage, his ex-wife Debra DeSage, his companies and his bookkeeper, Gary Parkinson, who also is charged in the case.

Sgro said the government seeks documents in connection with a tax evasion conspiracy charge against the three defendants, who are accused of using “deceit” and “trickery” to impede the IRS from collecting money DeSage owed.

Being forced to turn over documents would violate Akaragian’s Fifth Amendment rights against self-incrimination, Sgro argued.

The government has not yet responded in court documents to Sgro. U.S. Attorney Daniel Bogden declined comment, saying secrecy rules prohibit him from discussing grand jury proceedings or even confirming or denying the existence of a grand jury investigation.

In separate court papers, DeSage’s lead lawyer, Richard Wright, said he wanted the tax returns of Richardson and others DeSage suspects didn’t declare cash they received from him as returns on their investments.

“These omissions from their tax returns will constitute significant impeachment material regarding the credibility of these alleged victims,” Wright said. “Thus, the tax returns are crucial to Mr. DeSage’s defense that he did not defraud investors/lenders.”

Wright said the government won’t turn over the tax returns, which cover the years 2005 through 2014, without a court order.

Richardson, former vice chairman of Mandalay Resort Group, invested more than $56 million with DeSage in 2011 and 2012, according to a criminal complaint filed against DeSage in June 2012. At the time the complaint was filed, DeSage owed Richardson nearly $40 million.

DeSage returned roughly $17.4 million to Richardson who, according to the complaint, was comfortable investing with DeSage because he had “substantial apparent wealth and had been seemingly successful in business.”

The complaint only referred to Richardson as a former casino executive. Richardson was a major player on the Strip for years until 2005, when Mandalay Resort Group and its dozen casinos were sold to what is now MGM Resorts International.

Richardson’s lawyer, David Chesnoff, wasn’t happy with the request for the tax returns.

“Mr. Richardson, as a named victim, has great faith in the judicial system and will leave to the sound judgment of the court the recently filed unsupported motion,” Chesnoff said.

At the time of his original indictment in January 2013, DeSage was described on the Cadeau Express website as an international humanitarian and philanthropist who had rubbed elbows with American presidents and leaders of other countries.

He was said to have been born into a “prestigious family” in Lebanon, educated in France and once worked as an attache for UNESCO.

Cadeau Express was described as a “unique company that caters to hotels and casinos who roll out the red carpet for selective guests and high-end gamblers.”

Assistant U.S. Attorney Gregory Damm, who is prosecuting the case, has said in court that DeSage owned a 40,000-square-foot palace in Lebanon and more than $10 million in real estate holdings.

DeSage has been under electronically monitored home detention since his original arrest three years ago. His trial, now set for Jan. 26, has been delayed 10 times.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135. Find him on Twitter: @JGermanRJ.