Indictment exposes operations of limo company tied to prostitution ring

A federal indictment unsealed Friday provides a rare glimpse into a prostitution ring, an operation that authorities alleged was orchestrated by the owner of Strip limousine service CLS Nevada.

The court papers provide graphic excerpts from FBI wiretaps from the investigation into the multimillion-dollar racketeering conspiracy authorities say played out over four years at the Las Vegas company.

The CEO of the company, Charles Horky, is captured on the transcripts discussing prostitution with his limousine drivers, authorities say.

Horky, 52, two of his top aides and several limousine drivers are among nine defendants charged in the three-count racketeering indictment. He pleaded not guilty in federal court Thursday and was released on his own recognizance.

Horky is alleged to have used the limousine service to conduct a broad range of criminal activities, including drug trafficking and fraud, dating to 2008.

The affidavit said Horky primarily used two drivers, Clarence Adams and James Reda, both 38, to deliver prostitutes. The two drivers also were charged in the indictment.

In a secretly recorded telephone conversation in December 2011, Horky tells a driver, "I need two girls around midnight tonight for my attorney. You've done that for me before ... a thousand dollars apiece."

After the driver acknowledged the request, Horky warned against nonsense. He said the girls should have sex, do the job quickly, and it would be easy money.

In February, Horky and Reda were overheard discussing prostitution in a phone conversation, the indictment alleges.

"Hey, you got a line on whores?" Horky asked.

"I do," Reda responded.

"I need three," Horky said.

"Three, all right."

"Yeah," Horky said. "This guy's a really good friend of mine, and I've known him a lot of (expletive) years. He's a lawyer in L.A. He's a badass. I told him a thousand a girl. Is that good enough?"

"That's way good enough," Reda responded.

Horky said he would text him the friend's number.

"You got decent stock, don't ya?" he asked.

"Oh yeah, of course I do. Of course I do," Reda responded. "And the girls I know won't up-sell or none of that. ... They'll give 'em, you know, they'll be happy."

Horky continued the conversation in graphic terms, again telling Reda he expected quality service for his friend.

"Ok ... I'll turn you on to the deal and just take care of my boy, OK?" Horky said.

Horky texted Reda the next day, "Need smoking hot girl for later, like 10 or 11. Talk later."

Ten minutes later, Horky called another man and asked what kind of women to deliver. The answer: Petite, weighing no more than 105 pounds.

The indictment alleges some of clients paid with credit cards, and Horky and others in the scheme used interstate wires to process those charges and distribute the proceeds.

Some of the drivers also are alleged to have sold drugs from their limousines with the help of known dealers. In all, 10 defendants were charged with trafficking in cocaine, methamphetamine and Ecstasy in four separate and related federal indictments unsealed Friday.

Three of those defendants, including a driver, were among the nine charged in the racketeering indictment.

All five indictments are being handled by Assistant U.S. Attorney Timothy Vasquez, who specializes in organized crime.

Horky demanded drivers pay him a cut of the illicit money received from the criminal activities, the racketeering indictment alleges.

Among those activities was a scheme to defraud American Express and American Express card holders of more than $2.8 million through unauthorized charges, according to the indictment.

Horky led another check-kiting scheme that involved drawing checks on the company's payroll account knowing that the account did not contain sufficient funds, the indictment alleges.

More than $2.4 million in fraudulent checks are alleged to have been drawn in the scheme.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.