Judge Jones’ investment fraud trial set for Aug. 21

An Aug. 21 trial date was set Wednesday for longtime Family Court Judge Steven Jones and five other defendants charged in what authorities say was a $3 million investment fraud scheme.

But U.S. Magistrate Judge George Foley Jr. said the date probably will be pushed back because of the complex nature of the criminal case.

Federal prosecutors told defense lawyers that they expect to turn over 50,000 pages of documents, mainly FBI reports, and a "number of audiotapes," before the trial, which will take place in the courtroom of U.S. District Judge Miranda Du.

Foley set a Jan. 24 status check to discuss the progress of the evidence sharing.

Outside the courtroom, First Assistant U.S. Attorney Steven Myhre declined to discuss the evidence prosecutors have gathered.

Jones, 54, was charged with using the power of his office to carry out the investment scheme, which authorities say began in 2002. He pleaded not guilty and was released on his own recognizance earlier this month.

The judge and five other defendants face criminal charges in a 20-count indictment, including conspiracy to commit mail fraud and wire fraud, securities fraud and money laundering.

Prosecutors contend Jones' former brother-in-law, Thomas A. Cecrle Jr., 55, of Henderson, was the central figure in the scheme.

Cecrle, who pleaded not guilty this month, was detained pending trial.

The indictment alleges that between September 2002 and October 2012, the defendants persuaded people to lend them money under the guise of quick repayment with high rates of interest. The defendants indicated they needed the loans to secure valuable property and water rights, including land on the Strip, the indictment said.

When investors became disgruntled and questioned the legitimacy of their investments, the indictment alleges, the defendants lulled them into a false sense of security by referring them to Jones, who used his stature as a judge to vouch for Cecrle and the investment scheme, knowing it was a fraud.

The judge is alleged to have met with investors "in chambers, over the telephone and elsewhere."

According to the indictment, Jones took calls from Cecrle in chambers, drafted and reviewed documents associated with sham investments and received cash from the scheme at the courthouse where he heard cases.

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