Deborah Genato, 41, pleaded guilty before U.S.
District Judge Lloyd D. George in the District of Nevada to one count of conspiracy to commit mail
and wire fraud. Genato is the fourth person to plead guilty in connection with the scheme to
defraud HOAs in the Las Vegas area. According to the plea agreement, Genato was the property
manager for three condominium complexes, Vistana, Park Avenue and Chateau Nouveau. Genato
admitted that for two years beginning in February 2007, she participated in a scheme to control
various HOA boards of directors so that the HOA boards would award the handling of
construction-related lawsuits and remedial construction contracts to a law firm and construction
company selected by Genato’s co-conspirators. Co-conspirators also hired private
investigators to find “dirt” on the bona fide candidates in order to create smear
campaigns. Genato admitted that she used her position as property manager at Vistana, Park
Avenue and Chateau Nouveau to provide mailing lists, labels and other voting materials to create
fake election ballots. Genato also admitted that she allowed co-conspirators to gain access to
the election ballots that had been mailed into the property management company by the bona fide
homeowners prior to the election date. Genato admitted that she and her co-conspirators were
paid or received things of value for their assistance in purchasing the properties, obtaining HOA
membership status, rigging elections, using their positions to manipulate the HOA’s business
and to further the goals of the conspiracy and enrich the co-conspirators at the expense of the HOA
and the bona fide homeowners. The conspiracy violated the fiduciary owed to the condominium
owners by the HOA manager.
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