Condo owners on hook for developer’s code violations

Amy and Frank Taddeo bought their Las Vegas condominium on the assumption it met building codes.

When they recently began to suspect that American Invsco -- which converted the complex from apartments to condominiums -- had violated county building codes during the remodeling, the couple called county building inspectors.

This week, the Taddeos learned that for their trouble, the county is billing them more than $600 in investigation fees and holding them responsible to fix several electrical violations that inspectors found June 22 at their Meridian condo.

Some violations involve work that was done without building permits or inspections. All involve work that occurred after the original construction.

Also, the county recently ordered the Meridian homeowners association -- not individual owners -- to remove deluxe flooring installed during the conversion inside the units. Engineers have calculated that the stone and marble tiles are too heavy for the buildings, though the tiles pose no immediate danger. The upscale Meridian is on Flamingo Road, just east of the Strip.

The Taddeos learned of the electrical violations after the county sent the notice to the Meridian homeowners association, which then gave the couple a copy. In the notice, the county orders the association to compile and turn over a list of all units that underwent the same upgrades during the conversion.

Dennis Noto, the homeowners association's president, said the group does not have any paperwork showing which units underwent which upgrades because the developer did the work and did not share its records.

"You're asking for (information) I'm incapable of giving," Noto said angrily on Tuesday. "I'm being held responsible for things I don't have."

The county is "trying to palm it off on the HOA," Noto said, instead of communicating directly with unit owners and with American Invsco and its entities -- the parties that handled the conversion, the customizing of units and the original condo sales.

The Taddeos have never lived in or modified their Meridian condo. They bought it as an investment. They told the Review-Journal that they went to the county in June, requesting an inspection in hopes it would trigger prosecution of American Invsco, a Chicago-based company that touts itself online as the nation's leading condo developer.

The couple bought their unit in 2006 from one American Invsco affiliate, Koval Flamingo. Another entity then launched a hotel operation in the complex. In 2008, Clark County determined the hotel was illegal and shut it down, depriving owners such as the Taddeos of the promised rental income that had induced them to buy.

Frank Taddeo said that when he and his wife bought at the Meridian, they were relying on county officials making sure the converted building was safe.

"Where's the criminal here? They're saying I'm the criminal" by linking the violations to the buyer, not the developer or seller, Taddeo said.

The county contends it had no knowledge at the time of the Meridian's conversion that American Invsco was doing more than superficial, cosmetic improvements that don't require permits.

The Taddeos are among more than 200 Meridian owners who are suing American Invsco and other parties in federal court, alleging financial fraud in the sale, upgrade and management of their units.

Contact reporter Joan Whitely at jwhitely@
reviewjournal.com or 702-383-0268.