Clark County contractor borrowed $22,500 from ex-student and didn’t pay it back

Emerson Kruger is probably out of luck if he wants to collect the $22,500 he loaned to a Clark County government consultant who promised to use his influence to deliver a county contract.

Email records and text messages provided by Kruger show that county consultant Tom Akers said he’d help Kruger’s scooter rental business, Las Vegas Scooter, land a McCarran International Airport contract in exchange for a $50,000 loan.

When that solicitation fell flat, Kruger said, Akers proposed a $22,500 loan and promised to pay it back in full by the end of 2015.

Kruger took the deal, but he has nothing to show for it. Akers never repaid the loan, and Kruger didn’t get a county contract.

Kruger said he first crossed paths with Akers because of his desire to learn how to submit bids to the county and get contracts for county business. Akers himself has a county contract to oversee a series of free classes called the Business Opportunity and Workforce Development program. The classes teach small and minority-owned businesses how to bid for county projects and follow good business practices, such as cash-flow management.

The case is the latest chapter in the county’s relationship with a consultant that became troubled more than a year ago. The county had its own money problems with Akers when he didn’t pay rent on an office space.

Shortly after Kruger finished the classes in April 2015, Akers started asking him for money.

“He said that he needed cash flow,” Kruger said. “He said that he needed to take care of some things.”

Aker’s cash flow problem included an agreement signed in January 2015 with the county, which didn’t extend a lease, forcing him to leave office space he rented from the county’s Department of Aviation.

The county sued Akers in 2014, seeking $58,000 in unpaid back rent, but agreed to drop that action and keep Akers on as a consultant if he would put his entire monthly consulting fee, $9,500, toward paying off the debt.

County officials said Akers lived up to his end of that deal and eventually erased the debt.

One month later, Kruger started attending county business development programs overseen by Akers.

OFFER IS MADE

After the classes ended on April 23, 2015, Akers started emailing Kruger to ask for a $50,000 loan. Payments would start in July, with full repayment plus $10,000 interest by the end of the year. To sweeten the offer, Akers tossed in a bonus to his former student:

“Also, I will work as your business development person to secure two new concession contracts,” Akers wrote in a May 3 email to Kruger. He also attached a signed agreement that outlined those terms.

The work offered included looking for opportunities and attending meetings with airport staff and research for “competitive strategies.”

Kruger didn’t sign that document, but did lend Akers $22,500 in three installments — two in May and one in August, records obtained by the Review-Journal show.

He also agreed to let Akers work with him to try for county business, though he stresses that he considered the loan a separate matter and that he told Akers as much.

Nearly a year later, Kruger is still waiting to get his money back. He said he tried to cash a couple of checks from Akers but they bounced. Text messages exchanged between the pair show Akers made several promises to pay, but didn’t follow through.

Akers declined comment for this article. Kruger has plenty to say.

“I can’t believe the county is so corrupted,” Kruger said. “How can they have this guy teaching a small-business owner how to do business with the county?”

COUNTY: MATTER ‘TROUBLING’

Kruger reported the issue to the county, but received little more than sympathy in return.

“It is troubling and it’s unfortunate,” Clark County Chief Financial Officer Yolanda King said of the situation.

But did Akers break any county policies?

King says no.

Akers’ contract prohibits him from soliciting business from participants in his program, she said, but his loan solicitation to Kruger came after classes were over.

“Had this taken place before the classes ended, there would have been, according to Mr. Akers’ contract, a violation of his contract,” King said. She said she’s unaware of solicitations to any other program participants.

While the county acknowledges Akers’ actions are troubling, the only option that Kruger has would be taking Akers to court, as others have done to collect debts.

In any event, Akers won’t be a county contractor much longer. His current two-year contract, which paid $227,550, ends June 30. The county doesn’t plan to renew, and instead will have county staff do the training, King said.

While Akers might not have directly broken any state ethics laws or county policies, the rules are stricter for government employees than consultants. County employees cannot accept compensation from a person or business to represent them in any pending county issue.

A $400,000 federal Economic Development Administration grant pays for the program.

‘TOO MANY CHANCES’

Last month Kruger again tried to collect from Akers, this time warning he would go public about the unpaid loan.

“We are business people,” Akers responded by text. “And the public thing will set me back big.”

Kruger texted Akers that pressure was necessary and he’d been “too nice.”

“I understand the need for pressure,” Akers texted. “But, review how I will address the loan. … And, you will see how public issues will kill what I am doing.”

On March 14, Akers promised to pay at least $7,500 within four days. He also told Kruger his nonpayment was tied to an IRS levy on his county account.

Public records show the IRS sent the county a levy for $37,997 in November 2015, seeking back taxes owed from 2009 and 2012. A separate $65,831 levy was filed against Akers in October 2015 in connection with a lawsuit over unpaid rent for offices he used prior to moving into the county property, records show.

“It is embarrassing, but you should know why the payments were not made when promised,” Akers texted him, offering to show “proof” of how he plans to pay Kruger back.

Kruger’s patience was wearing thin.

“I know your renewal with the county is coming soon,” Kruger texted. “It wouldn’t be nice if the press or feds will find out.”

“I understand,” Akers responded, adding he’s been working “extremely hard” on the issue.

On April 3, the two were still exchanging texts. Kruger had repeated his intent to go public with more detail: putting banners on his three trucks and parking outside the Business Opportunity and Workforce Development classes.

“We will find out how many small-business owners have you asked for money and not (paid) back,” he texted. “My duty now is to make sure all (of) Las Vegas Valley and your students (know) who you are.”

Contact Ben Botkin at bbotkin @reviewjournal.com or 702-387-2904. Find @BenBotkin1 on Twitter.