Disbarred lawyer avoids prison time in HOA fraud case

Disbarred Las Vegas lawyer Jeanne Winkler was sentenced to three years of supervised release Tuesday for her role in the scheme to take over and defraud Las Vegas-area homeowners associations.

U.S. District Judge James Mahan also ordered Winkler to pay a share of $47,000 in restitution and serve 100 hours of community service.

Winkler, 47, broke into tears as she pleaded with Mahan to keep her out of prison so she could take care of her young children, who have special educational needs.

“Judge, I just want you to know I’m very sorry for my actions,” she said, adding she hoped Mahan wouldn’t let her children suffer for her indiscretions.

Winkler, who now lives in Reno, pleaded guilty in May 2012 to a felony count of conspiracy to commit mail and wire fraud and agreed to cooperate with federal prosecutors in the massive case.

Winkler admitted in her plea agreement that she failed to disclose she had done legal work for former construction company boss Leon Benzer, the scheme’s mastermind, before becoming general counsel for the Vistana HOA board. She also admitted that she failed to disclose that Benzer had given her a $47,000 loan that wasn’t paid back.

Once on the job at Vistana, Winkler looked after Benzer’s interests at the expense of the HOA and its homeowners, according to her plea agreement.

Winkler lost her Nevada law license in November 2011 over allegations she misappropriated about $233,000 from her client trust account. She also was arrested in 2011 on state theft and embezzlement charges.

In a separate federal fraud case, Winkler cooperated with prosecutors and became a government witness against former Family Court Judge Steven Jones, who is now in prison. Winkler was a victim in a decade-long investment fraud scheme involving Jones.

Another HOA defendant, Miguel Avila, was sentenced Tuesday to 366 days in prison for his role as a straw buyer and Benzer-contolled board member at Chateau Nouveau. Mahan also ordered Avila, who apologized for his conduct, to serve three years of supervised release after prison and pay $21,000 in restitution.

Avila, who pleaded guilty to a conspiracy charge and cooperated with prosecutors, is to surrender to prison authorities Sept. 18, but because he is not an American citizen, federal immigration officials may take him into custody for possible deportation proceedings.

Benzer, who pleaded guilty and is to be sentenced in August, engineered the takeover scheme so his company could obtain millions of dollars in construction defect repair work at Vistana and other condominium developments around the valley.

A total of 38 defendants pleaded guilty and four more were convicted at trial in what is considered the largest public corruption case in Southern Nevada. Prosecutors contend the scheme took place between 2003 and 2009 at a dozen targeted HOAs.

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