Judicial candidate accused

A candidate running for embattled District Judge Elizabeth Halverson's seat is facing a complaint brought by the Securities and Exchange Commission that alleges he helped set up an improper stock scheme that netted him and six others $3.91 million.

The SEC complaint accuses attorney Jason Landess, 62, and two Las Vegas residents of giving control of a Nevada company to a Texas attorney who orchestrated a "reverse merger" with a software company. A reverse merger is the acquisition of a public company by a private company, which allows the private company to bypass the lengthy process of going public.

The complaint said the activities began in 2005.

For arranging the reverse merger, Landess and the other men got a percentage of stocks, the complaint said.

Landess is accused by the SEC of violating the Securities Act by selling stocks that were not properly registered in connection with the merger.

The Texas attorney, Robert Sonfield, is accused by the SEC of violating anti-fraud provisions of federal securities laws.

Landess denied any wrongdoing and said he will file a motion to dismiss the complaint against him. Landess downplayed his role in the complaint, saying it puts him in a bad light by lumping him in with the larger fraud scheme when he is only being accused of a technical registration violation.

"I feel very confident that the claim against me will be dismissed," Landess said.

Landess said he received the stocks in question as payment for legal services. He said he consulted a securities expert who advised him that the stocks could be sold without registration.

Landess is running for the judge's seat held by Halverson, who did not make it through the August primary. Halverson is facing a Nevada Judicial Discipline Commission complaint accusing her of creating a hostile work environment and not doing her job properly. Halverson received less than 10 percent of the primary vote.

Landess garnered 30 percent of the primary vote and is up against Family Court Judge Stefany Miley in the general election for Department 23. Miley, who is endorsed by the Police Protective Association and the Clark County Prosecutors Association, earned nearly 60 percent of the primary vote.

Landess, a graduate of Loyola Law School in Los Angeles who at one time was a prosecutor in Orange County, lost more than $2 million while playing blackjack in 1994 and was sued by several casinos for unpaid markers. Landess filed for bankruptcy and said he no longer gambles.

The SEC complaint against Landess was made public at the end of July. It said that Landess and Las Vegas residents Donald Bradley and son Jeffrey Bradley gave control of a shell company called Kilis, Inc. to Houston attorney Sonfield, 76, and got 10 percent of the stocks.

Sonfield and two British men engineered a reverse merger with a software company called Exobox, the complaint said. Sonfield submitted public filings with the SEC.

According to the complaint, Sonfield left out information that he and the two British men controlled almost all of the company's "public float," a violation of federal anti-fraud laws. Public float refers to company shares held by public investors.

In a news release, the SEC said that Exobox and its officers and directors did nothing wrong.

Contact reporter David Kihara at dkihara@reviewjournal.com or 702-380-1039.