1 left in federal HOA scheme investigation

Stephanie Markham is the last woman standing in the wide-ranging government investigation into the massive scheme to take over and defraud homeowners associations.

The government spent a ton of money in the past seven years racking up 41 convictions in what is regarded as the largest public corruption investigation undertaken in Southern Nevada.

Now Justice Department lawyers are setting their sights on Markham, the lone remaining defendant, who is charged with lying to the FBI and to a federal grand jury about her alleged role in the scheme.

But Markham, a 56-year-old former Strip dancer who has moved to New York, is fighting back.

She denies the allegations and is trying to raise $30,000 on the Internet for her defense to, as she puts it, “fight the big guys vigorously.”

So far, Markham has received $4,780 from 36 donors, mostly in contributions of $100 or less, on the fundraising website GoFundMe. She calls her page, which features a photo of herself and her 17-year-old daughter, Madison, “Help Steph Fight the Feds.”

Markham’s veteran defense lawyer, Robert Langford, supports her effort.

“It’s a rather unique way to fund legal fees, but if you feel strongly about your cause and you can’t do it any other way, it certainly seems appropriate to me,” he said.

Markham, who once danced in the Lido de Paris production show at the Stardust and with famed magicians Siegfried & Roy, was indicted in December for allegedly trying to cover up a 1 percent interest she received in a condominium at the Jasmine development in June 2006. She also was charged with obstructing the high-profile HOA investigation.

Federal prosecutors allege Markham was primed to run for a seat on the Jasmine HOA board, where former construction company boss Leon Benzer was trying to land a lucrative contract to do construction defect repairs. Markham also served on another HOA board Benzer controlled.

Benzer pleaded guilty earlier this year to directing the scheme, which prosecutors alleged targeted as many as 11 HOAs around the valley between 2003 and 2009. Benzer packed HOA boards with “puppet” members through rigged elections to gain control and obtain millions of dollars in construction repair work, according to prosecutors.

Markham’s name surfaced several times during the three-week federal trial of her good friend, Benzer’s half-sister Edith Gillespie, and three others charged in the scheme. Prosecutors alleged Gillespie, a ballet teacher, recruited Markham to the scheme for Benzer.

Last Tuesday, a jury convicted all four defendants on conspiracy and wire fraud charges, setting the stage to bring the long-running investigation to a close after Markham’s June 29 trial before U.S. District Judge James Mahan.

On her webpage, which was created Feb. 2, Markham denies the allegations against her and says the FBI wanted her to strike a plea deal to testify against Gillespie at her trial.

“I will not take a plea, as I am not guilty,” she says. “Those of you who know me well know I am brutally honest and hide nothing. My life is an open book. I did not lie.”

Markham, who says she earns $40,000 a year as a single mom working at a title insurance company in New York, maintains she knew nothing about the 1 percent interest given to her in the Jasmine condominium and nothing about the scheme to take over the HOA board.

But her indictment alleges she lied when she made that denial to an FBI agent and also under oath to the grand jury in October 2012.

Markham says on the web page that if she loses her fight, she’s “prepared for the worst,” a possible 18-month stint in federal prison.

She tells her followers: “To know you have done nothing wrong and find yourself up against the FBI is something close to those really exciting movies we all enjoy — not so much.”

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