Ex-water official accused of orchestrating land deal

The former general manager of the Virgin Valley Water District was indicted by a Clark County grand jury on one count of misconduct by a public officer.

Michael Winters, who was fired by the water district earlier this year, is accused of orchestrating a land deal where the water district paid an inflated price to purchase land for an arsenic treatment plant, according to court documents.

According to the indictment and other court documents, in 2008 Winters steered the water district toward purchasing land located at 712 Hardy Way, Mesquite, and owned by Cresent Hardy for “an artificially high price.”

The 56-year-old Winters is also accused of failing to look for comparable and lower priced land owned by others and withholding information from the water district regarding the purchase, according to the indictment.

Hardy, who recently won the Republican primary for the open District 20 state Assembly seat and is a former Mesquite City councilman, is described as a friend of Winters’, according to authorities.

Hardy has not been charged.

Winters, a 16-year employee of the water district, was fired in February after board members learned Las Vegas police had been investigating his actions for more than a year.

According to the Clark County assessor’s office, the water district purchased the 1.18 acres of land in April 2008 for nearly $425,000, or $8.25 per square foot.

Authorities contend that price was significantly higher than the land was worth. According to an arrest summons, other properties that would have met the water district’s needs were available for sale for about $6 per square foot, but Winters never informed the water district board members.

Winters told investigators the price paid for the Hardy Way property was based on an appraisal. But according to police, the appraisal overvalued the property and overestimated the property’s size.

An independent review of the appraisal of the Hardy Way property put the square foot value at $6.50, according to the arrest summons.

Winters’ attorney, Bret Whipple, believes the case against his client is weak and politically motivated.

Whipple said the case originally revolved around two defendants, his client and former water district board member Cecil Leavitt, alleging they had committed multiple felonies.

Whipple said that the indictment is for only one count and against one defendant shows how weak the prosecution’s case is.

“I don’t know how this person (Winters) is supposed to be blamed for something when it’s a decision other people make. He can give advice, he can give recommendations but he’s not the commissioners, he’s not the one elected to represent the taxpayers,” Whipple said, explaining that the water district voted to approve the sale.

The water district’s board members should have voted against the purchase if they felt it was a bad deal, Whipple said. The board approved the purchase of the property by a three to two vote, according to court documents.

“The irony is that he (Winters) never put a dollar in his pocket,” Whipple said.

Winters had managed the Virgin Valley Water District since its inception in 1993, Whipple said.

A message seeking comment left for Hardy at his business was not immediately returned.

Winters is scheduled to be arraigned July 1 in district court. If convicted Winters would face mandatory probation.

Contact reporter Francis McCabe at fmccabe@reviewjournal.com or 702-380-1039.