Claims against receivership not delayed

A Clark County district judge on Tuesday refused to delay lawsuits against a defendant in the Southwest Exchange receivership case.

Attorney M. Nycole Hearon, who represents Peter John "PJ" DeMarigney, urged Judge Elizabeth Gonzalez to stay action in the lawsuits against DeMarigney in the consolidated Southwest Exchange cases.

DeMarigney was a stockbroker for Donald McGhan, former chairman of Southwest Exchange, which failed in January owing 150 individuals $95 million.

Henderson-based Southwest Exchange was an accommodator that held the proceeds for investors who sold real estate and wanted to delay income taxes on their profit from the sales.

In denying the motion, Gonzalez said, "The longer this matter sits here, the harder it will be for a determination as to what funds are gone."

Hearon had argued that if the judge did not delay the case DeMarigney would be forced to take the Fifth Amendment against self-incrimination.

"Every time he says that, you think there's something you're hiding," Hearon said, adding that her client would need to protect himself against any future criminal charges. "The facts here in the civil case are the facts in the criminal case."

Attorney Tina Yan, who represents US Fire Insurance, another defendant, objected.

"It could be a very long time before any criminal charges are filed," Yan said.

Brad Johnston, an attorney for a plaintiff in the case, noted there is no evidence of a criminal investigation. The FBI will only confirm that it is interviewing witnesses, he said.

Granting a stay to DeMarigney would "undermine public confidence in the availability of judicial remedies," Johnston said.