Ex-Las Vegas financial crimes cop charged in $1.2 million fraud scheme

A former Las Vegas police detective has been charged with committing fraud while he investigated financial crimes.

Scott Friedman was indicted by a federal grand jury last month in an investment scheme authorities say defrauded longtime cardiologist Tali Arik of $1.2 million.

Friedman, 43, was charged with participating in the scheme while he worked in the Financial Crimes Section of the Metropolitan Police Department. A 14-year Metro veteran, he was assigned to the unit from February 2009 until his medical retirement in August 2012.

Two other defendants — Martin McClain, 58, who portrayed himself as a building contractor, and Randall Petas, 61, a local restaurant manager — were also indicted.

The three men were charged with wire fraud and conspiracy to commit wire fraud. They were released on their own recognizance earlier this month after pleading not guilty. Their trial is set for Nov. 4 before Senior U.S. District Judge Larry Hicks.

“There are persons willing to lie, cheat and steal in every walk of life and profession,” Nevada U.S. Attorney Daniel Bogden said. “The U.S. Department of Justice will prosecute you no matter who you are or what title you hold.”

The conspiracy unfolded in December 2007 when McClain approached Arik with an opportunity to buy the 1,300-acre Black Canyon Estates near Bakersfield, Calif., according to the indictment.

McClain told Arik the land could be had for a significantly reduced price of $760,000 because the seller was about to default on promissory notes secured by the land, the indictment alleges. McClain indicated that he was the middleman for the seller, ASA Inc.

In reality, the property wasn’t for sale. Nor did it belong to ASA, a fictitious company set up by Petas and McClain to defraud Arik, the indictment alleges.

Over the next two years, Arik paid $775,874 to ASA, according to the indictment. McClain also solicited more money from Arik, with Friedman’s help, under the guise of keeping the property out of foreclosure, the indictment alleges.

Fearing he would lose his investment and having run out of money, Arik agreed to pay back Friedman $149,000 for what he thought were loans to prevent foreclosure, according to both the indictment and a 2011 lawsuit filed by Arik.

At a February 2009 meeting in the high-limit gambling area at Red Rock Resort, McClain introduced Arik to Friedman, who confirmed he was a detective in the Financial Crimes Section, the lawsuit says. McClain told Arik he was going to help him “get through the situation” by “lending him money to close escrow.”

Friedman used his position as a police officer to gain Arik’s “trust” and “confidence” to fraudulently obtain more money from the cardiologist, the lawsuit alleges.

Friedman joined the financial crimes unit the day after the Red Rock meeting, police records show.

By July 2009, the doctor had told McClain he no longer could afford loan payments, prompting an unhappy Friedman to set up a meeting with Arik at Santa Fe Station, the lawsuit says.

Friedman told Arik that $80,000 of the loan was from a “middleman to the Chicago mob,” and had to be paid back immediately.

“Officer Friedman continued by telling Dr. Arik that, ‘You have to pay because bad things will happen to your family. … You and your family will get hurt,’” the suit says.

Fearing for his life, Arik borrowed $80,000 from a friend to pay Friedman, who assured him “Don’t worry, I will take care of it and you will never hear from these people.”

The cardiologist made payments on the fictitious loans until September 2009, when he became suspicious of Friedman and went to authorities. The FBI took the lead in the criminal investigation.

Arik’s 2011 lawsuit over the scheme ended with an $8.5 million default judgment against McClain and several co-defendants. Friedman and Petas were dropped from that action.

The lawsuit identified McClain as Anthony O’Neil, one of several aliases listed in the federal indictment.

Arik and his attorney, Jesse Sbaih, declined comment in light of the pending criminal case. Friedman’s lawyer, Melanie Hill, also declined comment.

Friedman filed for bankruptcy in July 2010, listing $576,250 in assets and $953,838 in liabilities. He listed tens of thousands of dollars in credit card debt, but he did not mention the $149,000 he is accused of taking from Arik.

Sbaih won an order from U.S. Bankruptcy Court allowing Arik to pursue a financial judgment from Friedman after his debts were discharged in August 2012. Six weeks later, however, Sbaih dropped the civil case against Friedman and instead pursued the monetary judgment against McClain and the remaining defendants in the case, records show.

Friedman sued the Police Department in April, accusing Metro of discrimination because he is not allowed to carry a retirement badge and concealed weapon. Friedman alleged the denial was related in part to a 2011 disciplinary action against him and other officers.

Metro in court papers has said there was good reason for the denial, pointing to but not explaining the 2011 misconduct allegation. A police spokeswoman declined further comment.

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