Vegas Legal Magazine - Summer 2018

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EDITOR IN CHIEF Preston P. Rezaee, Esq. PUBLISHER Tyler Morgan, Esq. DIRECTOR OF OPERATIONS Jeffry Collins DIRECTOR OF MARKETING Danielle Saenz ADVERTISING INFO@VEGASLEGALMAGAZINE.COM CALL 702-222-3476

CONTRIBUTORS ANDREW CASH, M.D. MARK FIERRO JEFF HANEY MICHELLE HYLA, D.O. TOM JOSEPH KYLE LAUTERHAHN MARK MARTIAK MYRON MARTIN CAROL MILLER VALERIE MILLER RICK NELSON RITA RAMIREZ ANDREW SCHNEIDER STAN V. SMITH, PH. D. DONOVAN THIESSEN, CPA DEBRA CASSENS WEISS

SUMMER 2018

COVER STORY

CONTENTS

PG. 41

LAW

10 // WORTH THE PAPER IT’S WRITTEN ON 14 // GUARDIAN AD LITEMS 19 // DOVEY JOHNSON ROUNDTREE 22 // PERSECUTION OF JEFF KRAJNAK 26 // QUARTERLY ECONOMIC COMMENTARY 29 // CASA: LETTER FROM AN ADVOCATE 30 // WYNN RESORTS LOOKS TO THE FUTURE 35 // SENATOR DEAN HELLER 41 // SHERIFF JOE LOMBARDO

BUSINESS

SPORTS BETTING

44 // CASA GOLF TOURNAMENT PHOTOS 49 // VLM’S BLACK BOOK 52 // 2019 JAGUAR F-TYPE 55 // STATE OF THE MARKET 57 // SUPREME COURT: YES ON SPORTS BETTING 58 // 1099-MISC: ARE YOU TAX COMPLIANT? 60 // FINANCIAL HABITS & ACHIEVING HAPPINESS 62 // CREATING WEALTH FROM TAX PLANNING 65 // TAKE ADVANTAGE OF TECH

LIFESTYLE

66 // SAKS FIFTH AVENUE 71 // BAR REVIEW: TOP OF THE WORLD 72 // THE SMITH CENTER THANKS YOU 75 // UNDERSTANDING THE BENEFITS OF FIBER 76 // FIGHT BACK PAIN WITH AEROBIC EXERCISE 78 // LAS VEGAS ICONS: FRANK SCHRECK 81 // HUMOR

PG. 57

TOP OF THE WORLD PG. 71

Vegas Legal Magazine Summer 2018 | Pg. 5

LETTER FROM

THE EDITOR

1 October 2017. Red October in the Entertainment Capital of the World. In a heartbeat, as 58 other hearts ceased to beat, Sheriff Joe Lombardo became a familiar face around the world. The Clark County Sheriff, visibly anguished, stood strong at televised press conferences in the days and weeks following the attack. The “Vegas Strong” movement lasted but a fading moment. As the hype and hyperbole evaporate, so did the urgency for sensible gun control legislation - until the next inevitable tragedy.

For the Summer 2018 issue of Vegas Legal Magazine, I had the privilege of meeting with Sheriff Lombardo. A 30-year veteran of law enforcement, Lombardo reflects on the worst mass shooting in modern U.S. History.

In June 2017, Joe Lombardo won the primary elections for a second term as sheriff of Clark County. As expected, the victory was a landslide. The Sheriff will be here for a second term, tasked with the arduous responsibility of keeping Las Vegans, and the millions who visit our city, from harm’s way.

Preston P. Rezaee, ESQ

Vegas Legal Magazine Summer 2018 | Pg. 7

Tell Your Mother-in-Law the Guest Room is Taken It takes a special person to open their heart and home to an animal in need.

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LETTER FROM

THE PUBLISHER

In the last few years this magazine has brought exciting opportunities and experiences for all of us here at Vegas Legal Magazine.

We have interviewed key figures on both the local and national level, published stories on important topics, and we all feel we have contributed toward improving the legal landscape here in Las Vegas by giving a voice to attorneys and others who help to shape the community.

However, there is one experience I will cherish close to my heart–raising money and awareness for the CASA Foundation through our first ever Vegas Legal Magazine charity golf tournament. Preston and myself, together with our amazing staff, decided after reaching many of our goals with this publication it was time to begin leaving a more personal mark on the community. There are many great charities and organizations that provide a tremendous amount of goodwill in the community and we hope to work more with all of them, but the focus of our efforts this summer was towards the children in the foster care system. CASAs (Court Appointed Special Advocates) spend countless hours assisting children in the foster care system whether it be through being a child’s voice in the court system or just being a caring friend when a child needs one.

Our golf tournament was held at Las Vegas Country Club and we had nearly 60 golfers sign up and numerous sponsors contribute to the event. But, by the end of the day, this tournament was more than a showing of support for the CASA Foundation. This golf tournament was a showing of the true colors of our legal community. Once this tournament was scheduled, flyers went out and phone calls were made to all of you for support and you all went beyond our requests to participate. I began getting calls from so many of you asking how to help do more. It truly was a heartfelt experience to see so many of you come together in the way you did. Thank you from all of us here at Vegas Legal. For everyone who participated and played, the sponsors and the country club; your support has touched the lives of so many children here in Las Vegas. Thank you!

Tyler J. Morgan, Esq.

Vegas Legal Magazine Summer 2018 | Pg. 9

Worth The Paper It’sWritten On. The Nevada Supreme Court Recognizes Common Interest Communications As Confidential EvenWithout AWritten Agreement – By J. Malcolm DeVoy, Esq., & Erica A. Bobak, Esq.

The common interest rule allows an attorney to share information with

other parties involved with or anticipating litigation against a common adversary. Often, these are memorialized as agreements among plaintiffs or defendants to share information against the other. While it is a best practice to reduce these arrangements to writing, it does not always happen. In the past, intrepid adversaries have seized on the lack of a written agreement to make those communications public, arguing that the attorney-client privilege or work product doctrine—which protects attorney communications and assessments of a case—had been waived.

The Nevada Supreme Court ruled in Cotter v. Eighth Judicial District Court, though, that the common interest rule applies and protects attorney communication even absent an agreement for confidentiality.

1. Welcome Back Cotter: The Road to the Nevada Supreme Court Recognizing a Widely Applied Doctrine.

Like many other proceedings that have set Nevada law in recent years, Cotter began with the defendant company’s termination of a key employee: its CEO, James Cotter. Cotter sued a number of the directors of his former employer, Reading International, Inc. (“Reading”), in the Eighth Judicial District Court due to his termination. Based on Cotter’s claims against the directors, some of Reading’s shareholders wanted to pursue a shareholder derivative lawsuit against the same directors Cotter was suing, based on similar facts and claims. The Reading shareholders ultimately filed their derivative suit, and the two actions against the directors—Cotter’s direct lawsuit and the shareholders’ derivative action—were consolidated into one case.

During that litigation, Cotter’s attorneys shared information with counsel for the shareholders. Reading’s counsel learned of this, and sought the production of that communication. Both Cotter and the shareholders asserted that the communications constituted attorney work product, which was privileged and protected from disclosure. Both sides failed, however, to memorialize this sharing of information with any kind of confidentiality agreement, such as a joint prosecution agreement. As a result, the district court ordered that the communications be produced.

Rather than produce those communications, and believing that the harm from disclosing such communications could not be rectified on

Vegas Legal Magazine Summer 2018 | Pg. 10

appeal, Cotter filed a petition for a writ of mandamus or prohibition with the Nevada Supreme Court. As has so often been the case in matters of privilege in recent years, the Supreme Court granted the petition and issued a reported decision in deciding its merits.

Sharing attorney-client communication or work product does not necessarily waive the protected and confidential status it would enjoy if it had never been disclosed to a third party. To maintain that information’s confidentiality, though, it must qualify for protection under the common interest rule. While this is a common rule in other jurisdictions throughout the United States, it is one that Nevada had not addressed in depth prior to the Cotter decision.

For the common interest rule to apply, the parties exchanging confidential and privileged information must “anticipate litigation against a common adversary on the same issue or issues” and “have strong common interests in sharing the fruit of the trial preparation efforts.” The rule is not narrowly limited only to co-parties. All that is needed to realize the purpose of the common interest rule “is to protect material from an opposing party in litigation, not necessarily from the rest of the world generally.” Although desirable—and not always practical—a written agreement memorializing this arrangement is not needed. Two or more parties’ common interest “may be implied from conduct and situation, such as attorneys exchanging confidential communications from clients who are or potentially may be codefendants or have common interests in litigation.”

2. Practical Concerns in Applying the Common Interest Rule.

Because the entire purpose of the common interest rule is to facilitate the sharing of otherwise confidential information, it potentially raises the greatest risk for waiving those privileges. When privileges maintaining the confidentiality of attorney-client communications or attorney work product are waived, the waiver is “usually found when the material is disclosed to an adversary.” In reaching its ruling, the Nevada Supreme Court acknowledged that numerous other jurisdictions have already recognized a broad common interest rule, allowing attorneys to share work product with other counsel for clients with the same interest without waiving the privilege.

“[B]y enlarging the circle of persons to whom the clients may disclose privileged information,” the common interest rule allows the free flow of information between or among litigants, or potential litigants with shared interests, while maintaining the confidentiality of that information.

This aids parties in learning about their adversaries and obtaining the information they need to prosecute or defend their cases. Indeed, the most common application of the privilege is when attorneys representing different parties pool their information together.

Although the Nevada Supreme Court recognized the common interest rule’s application even without a written agreement, the amount of discovery and effort needed to prove (or disprove) the plaintiffs’ unity of interest illustrates the desirability of a written agreement. Had the parties in Cotter entered a written agreement, it would have undercut one of the facts the district court apparently relied on quite significantly.

Additionally, a written agreement would have clarified the relationship between the parties, or lack thereof.

In situations where one party obtains counsel for another, such as an employer hiring separate counsel for an employee accused of wrongdoing, a written agreement can serve other important purposes, such as memorializing compliance with the Nevada Rules of Professional Conduct, and the party retaining counsel advising the beneficiary to tell the truth—no matter what. While each case and the circumstances of every common interest agreement are different, a written agreement presents the opportunity to memorialize important facts. Important considerations include documenting that the information provided under the agreement is privileged, its use is conditioned on the recipient’s continued cooperation and truthful use of the information, remedies for breach, and the return or destruction of privileged information after the agreement’s term concludes. In many ways, a common interest agreement can be fashioned with provisions similar to a non-disclosure or confidentiality agreement.

Ultimately, the Nevada Supreme Court’s decision in Cotter confirms

Nevada law complies with that of other jurisdictions. While the recognition of the common interest rule even without a written agreement is reassuring to attorneys, especially in complex litigation with numerous parties, its reassurance is analogous to the role of a safety net for acrobats.

While Cotter will protect privileged information from disclosure where it has been shared with commonly interested parties, it is preferable to not rely upon its holding. Common interest agreements are and have been the norm in multi-party practice; they will continue to be even in the wake of Cotter. The Supreme Court’s decision will provide extra protections to litigants despite any infirmities in their written common interest agreements, but it is no substitute for contractual protection for confidential information.

J. Malcolm (“Jay”) DeVoy is the owner of DeVoy Law P.C. Erica A. Bobak is an associate attorney with the firm, previously the law clerk for Department 30 of the Eighth Judicial District Court.

DeVoy Law focuses on providing representation to clients in significant business disputes, serious personal matters, and advising medical professionals and practices about issues including licensure, HIPAA, Stark Law, and the Anti-Kickback Statute.

1. 134 Nev. Adv. Op. 32.

2. Or, commonly, a joint defense agreement between or among numerous defendants represented by separate counsel.

3. United States v. Am. Tel. & Tel. Co. (“AT&T”), 642 F.2d 1285, 1299 (D.C. Cir. 1980).

4. Generally, courts have held that litigants who share a common interest in litigation should be able to communicate with their respective attorneys and with each other to more effectively prosecute or defend their claims. In re Grand Jury Subpoenas, 89-3 & 89-4, John Doe 89-129 (Under Seal), 902 F.2d 244, 249 (4th Cir. 1990).

5. AT&T, 642 F.2d at 1298-99.

6. United States v. Gonzalez, 669 F.3d 974, 979 (9th Cir. 2012) 7. Wynn Resorts, Ltd. v. Eighth Judicial Dist. Ct., 133 Nev. Adv. Op. 52, 399 P.3d 334, 349 (2017).

8. See, e.g., Gonzalez, 669 F.3d at 978; In re Grand Jury Subpoenas, 902 F.2d at 249; Castle v.

Sangamo Weston, Inc., 744 F.2d 1464, 1466 (11th Cir. 1984); AT&T, 642 F.2d at 1298-99.

9. Mark L. Tuft and Brandon Lawrence, “What’s Uncommon About the ‘Common Interest’ Doctrine.” https://www.americanbar.org/content/dam/aba/administrative/professional_ responsibility/38th_conf_session8_whats_uncommon_about_the_common_interest_ doctrine.authcheckdam.pdf 10. Niagara Mohawk Power Corp. v. Megan-Racine Assocs. (In re Megan-Racine Assocs.), 189 B.R. 562, 572 (Bankr. N.D.N.Y. 1995).

11. 134 Nev. Adv. Op. 32 at 4.

Vegas Legal Magazine Summer 2018 | Pg. 11

The Growing Need For

GUARDIAN AD LITEMS For Minor Children & Incapacitated Adults In Personal Injury Cases –By Nedda Ghandi, Esq.

For minors and incapacitated adults (Protected Person(s)), assistance

with personal injury claims can be a challenge. It can be difficult to navigate the legal system, and even more so if the person injured is a minor or has been deemed incapacitated. Family members are often tasked with the responsibility of making decisions for Protected Persons in personal injury litigation; but, conflicts may arise between the family members and the Protected Person, such as a parent agreeing to settle a case for a minor child when both of them were involved in the accident.

Courts are increasingly recognizing the needs of potentially vulnerable Protected Persons, and recent policy and statutory changes to minor and adult guardianship statutes indicate a shift toward additional safeguarding of Protected Persons. Utilization of guardian ad litems (GALs) in litigation ensures the rights of the Protected Persons are secure. In the arena of personal injury litigation, it is more important than ever for attorneys to be aware of the unique services that GALs can provide to Protected Persons.

When Is A GAL Necessary?

Minor’s claims are typically handled through the minor compromise process pursuant to NRS 41.200. This process may be satisfactory in many cases, but in highly contested matters or complex litigation, it can be beneficial to have separate representation solely for the minor, especially if there are substantial injuries to the minor and the parent is also a plaintiff.

Claims made by an incapacitated adult may be difficult because adults who have been deemed incapacitated may regain capacity or may suffer reduced capacity as a result of an injury. They may also have executed powers of attorney or other documents authorizing others to make decisions on their behalf. Depending on the level of incapacity and the estate planning documents executed by the adult, a guardianship may be necessary to handle matters beyond the personal injury litigation, but a GAL can certainly be appointed for the purpose of the litigation to ensure the best result for the Protected Person.

Vegas Legal Magazine Summer 2018 | Pg. 14

The Role Of The GAL In Personal Injury Litigation Process GALs are court appointed. GALs often work in the family law arena where they are authorized to investigate solutions that would be in the “best interest” of a minor child. In this area, GALs are afforded broad authority, and deal with all issues, including custody battles, visitation rights, and child support issues.

In the personal injury litigation area, GALs play a substantially different, more limited role for the Protected Person. In personal injury cases, the GAL has no authority outside the scope of the litigation, even where the personal injury litigation involves a minor plaintiff and the GAL believes the decisions are in the best interest of the minor. Although the ultimate goal of the GAL is the same in this litigation context and the GAL must advocate for the best interest of the child throughout the litigation process, a GAL in a personal injury case should have general knowledge of personal injury law. The GAL should be able to analyze potential issues regarding liability, damages, and future medical needs of the Protected Person.

In personal injury litigation, the GAL should attempt to maximize the Protected Person’s award. If, for example, a minor is rendered a paraplegic or will be in a wheelchair for an indefinite period of time, it might be appropriate, and would be in the minor’s best interest, to allow the parents to purchase from the proceeds of the settlement a van with wheelchair lifts to enable the minor to live a more active life.

Further, a question of settlement is often at issue, and the pressure to settle can be heightened by time constraints and mounting medical bills. As a result, a Protected Person, and their parent or guardian, may be inclined to accept a quick, and often under-value, settlement. In this situation, the GAL serves to evaluate the long-term consequences of a rapid settlement.

Appointment Of The GAL The appointment of a GAL is more than a mere formalism. Typically, a

parent of a minor involved in personal injury litigation will be appointed as the minor’s GAL. However, in some jurisdictions, parents may not act as the GAL if there appears to the court to be a conflict of interest adverse to the minor child. For example, if a parent is injured in the same accident, there may be a conflict when it comes to determining who is at fault during settlement discussions. If there is a conflict of interest, a parent’s request for appointment should be denied.

in guardianship cases and also establishes the Protected Persons Bill of Rights, as well as Senate Bill No. 433, which ensures that Protected Persons cannot be isolated, and compels the court to hear Protected Persons cases in an expedited manor. Senate Bill No. 433 also makes sure that Protected Persons will have legal representation and authorizes the court to impose fines and order restitution in cases where guardians are guilty of impropriety.

Appropriate safeguards also need to be put into place to ensure that the funds are available to the minor when he or she emancipates, which are typically done through minors compromises and blocked accounts. There are far too many instances where there is nothing left for the minor because the parents have spent all of the money. Appointment of a GAL can ensure that the assets are preserved for the Protected Person.

Conclusion

Other states have strict rules for appointment of GALs. In Texas, a court can appoint a GAL either on its own initiative, or in response to a motion filed by any party to the case. Similarly, Florida law is strict regarding the representation of the economic interests of minors involved in litigation, providing that a minor’s parents can only settle on their minor’s behalf without court intervention when the gross value of the settlement is $15,000 or less. When a minor has a settlement whose gross value is between $15,000 and $50,000, the court has discretion to require appointment of a GAL. If a minor has a settlement whose gross value exceeds $50,000, the court must appoint a non-parent guardian or GAL. Federal GAL Statutes GAL statutes are governed by Federal Rule of Civil Procedure 17(c). Under this rule, a court must appoint a GAL—or issue another appropriate order—to protect a Protected Person who is unrepresented in an action.

The court in Davis v. Walker held that “the purpose of Rule 17(c) is to protect an incompetent person’s interests in prosecuting or defending a lawsuit. Ordinarily, when a substantial question exists regarding the mental competence of a party proceeding pro se, the proper procedure is for the district court to conduct a hearing to determine competence, so a GAL can be appointed, if necessary.

In sum, the role of a GAL in personal injury cases of Protected Persons is extremely important. From protecting the rights of these clients to ensuring adequate settlements, the services provided by a GAL are imperative. Attorneys should recognize the value of the GAL in personal injury cases involving Protected Persons and should not hesitate to seek out their assistance.

Nedda Ghandi, Esq., is the founding partner of Ghandi Deeter Blackham Law Offices. A Nevada native, Ghandi is a graduate of the Univertisy of Nevada, Las Vegas William S. Boyd School of Law and has practiced law in Las Vegas for 9 years. Ghandi has written numerous articles for publications concerning interesting developments in the law, and has been selected as a member of Nevada’s Legal Elite and as a Super Lawyer every year since 2013. Ghandi Deeter Blackham specializes in family law, bankruptcy, guardianship, and probate. Consultations may be scheduled by calling 702.878.1115 or visiting www.ghandilaw.com 1. The Honorable Mark Davison, Judge, 11th District Court, Role of the Ad Litem in Personal Injury Cases, December 6, 2003, Houston Bar Association Civil Court Ad Litem Seminar 2. Davison, Id. 3. Ellen K. Solender, The Guardian Ad Litem: A Valuable Representative or an Illusory Safeguard?, 7 Tex. Tech L. Rev. 619, 619 (1976) 4. Id. 5. 745 F.3d at 1310.

6. Kuzmicki v. Hanrahan, No. 3:17–cv–00342–RCJ–VPC, U.S. 2018 WL 2088745, (D. Nev. May 4, 2018) (Citing Krain v Smallwood, 880 F.2d 1119, 1121 (9th Cir. 1989).

Nevada’s GAL Statutes The majority of Nevada guardianship laws are located in Nevada Revised Statute Chapter 159. Similar to the federal rules, NRCP 17(c) provides that the court shall appoint a GAL for an infant or incompetent person not otherwise represented in an action or shall make such other order as it deems proper for the protection of the infant or incompetent person.

While Nevada still has room to grow in compelling GALs for Protected Persons involved in personal injury litigation, the Legislature has made progress. On June 12, 2017, the Nevada Guardianship Compliance Office was created by Assembly Bill 130, as part of the Administrative Office of the Courts, Supreme Court of Nevada. The Bill established the GCO to provide additional services to the Nevada District Courts during the administration of guardianship services. The GCO acts to identify reporting deficiencies by GALs and works with the district courts to implement best practices in managing guardianship cases.

Last year, the Nevada Legislature also enacted measures to safeguard older and vulnerable citizens from those who might exploit them. It passed Senate Bill No. 360, which increases both civil and criminal accountability

Vegas Legal Magazine Summer 2018 | Pg. 15

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DOVEY JOHNSON ROUNDTREE Groundbreaking Lawyer Who Won Bus Desegregation Ruling Dies At 104 –Debra Cassens Weiss

Dovey Johnson Roundtree, a groundbreaking Washington, D.C.,

lawyer who persuaded the Interstate Commerce Commission to issue a ruling banning racial segregation on buses has died at 104.

Roundtree died Monday from complications from Alzheimer’s disease, her cousin and law partner Jerry Hunter told the Washington Post. The New York Times and the Charlotte Observer also have stories.

Roundtree was one of few black women practicing law when she formed a law firm with a classmate after graduating from Howard University’s law school in 1950. She was the first black woman admitted to the Women’s Bar Association of the District of Columbia.

She attended law school on the GI Bill after becoming one of the first woman to attain the rank of captain in the Women’s Army Corps.

During law school, Roundtree helped Thurgood Marshall and other NAACP lawyers in their work on Brown v. Board of Education, the landmark school desegregation case.

Dovey Johnson Roundtree. Photo by Megavoice via Wikimedia Commons.

In private practice, Roundtree represented criminal defendants who In the bus case, Roundtree represented a black woman, an Army often couldn’t afford to pay. “We worked for eggs and collard greens,” Corps private, who refused to give up her bus seat to a white Marine Roundtree once said. in 1952. The Interstate Commerce Commission ruled for Roundtree in 1955, though the ruling wasn’t enforced until 1961 after the activist One of her most famous cases was the representation of Raymond Freedom Riders were attacked while trying to integrate buses.

Crump Jr., a poor black man accused in the death of the white Washington socialite Mary Pinchot Meyer, who was shot and killed The Times spoke with biographer Katie McCabe about Roundtree’s while walking near a canal. Crump told police he had been fishing influence. “As a woman, and as a woman of color in an age when black nearby and nearly got shot himself. Witnesses said they had seen a lawyers had to leave the courthouse to use the bathrooms, she dared black man near the body. to practice before the bar of justice and was unflinching,” McCabe said. “She was a one-woman Legal Aid Society before people used that Roundtree won an acquittal after pointing out that Crump was only term.”

5-foot-3 and 130 pounds, while witnesses said the black man they saw Reprinted with permission from the May 2018 issue of ABA Journal. Copyright 2018, ABA was about 5-foot-8 and 185 pounds.

Journal. All rights reserved. License # 51433

Vegas Legal Magazine Summer 2018 | Pg. 19

The Persecution of Jeff Krajnak Former Navy Seabee May Be Headed To Prison Because Of Nevada’s Archaic Marijuana Laws –By Mark Fierro

You knew this would happen. Everyone knew this would happen. After

the smoke cleared from Nevada’s historic debut of recreational cannabis dispensaries all over the state, the hypocrisy of the state’s draconian marijuana “per se” (driving under the influence) laws remained. Sure you could buy a jar of flower, carry a pre-roll of your favorite indica pretty much anywhere with you if you wanted, and contribute to the tens of millions of dollars in revenue from Nevada’s legal marijuana haul. District Attorney Steve Wolfson put out the word, just one week after Nevada’s vote in favor of legalizing recreational marijuana, that his office would no longer prosecute possession by adults 21 and older of less than one ounce of cannabis.

Respect. Much respect for what at the time was a bold, bold move.

Six months later billboards for dispensaries popped up across the valley.

It was official. Nevada was cannabis friendly. Except, there were no billboards warning about those “other” laws. The really scary, life changing ones. The “per se” laws that result in making a lot of Nevadans criminals the next time they get behind the wheel of a car. The stone-cold truth is, if you smoke a joint in Nevada you can’t legally drive a car for weeks. It has nothing to do with you being impaired. Just the “per se” law, son, just the law.

Jeff Krajnak found out the hard way when a police SWAT team came banging on his door shortly after noon on May 31, 2017, Krajnak says he was home alone when the knock came at his door.

“It was 10:30 a.m., they came to the door with a full SWAT team with tactical gear and auto weapons,” he said. “They grabbed me and slammed me against the wall.”

The entire episode was captured on the family’s video home security system.

“I told them, ‘I have video cameras,’ and they backed off a little bit.”

Vegas Legal Magazine Summer 2018 | Pg. 22

If there is one saving grace, Krajnak says, it was that his twins were at school.

“They handcuffed me, drove to jail.”

Later, Krajnak’s wife Shellie-Ann came home to an empty house. She figured it out when she reviewed the home security video. “She called a lawyer right away. She was upset because she saw video footage. I wasn’t resisting. I have no criminal background whatsoever.”

Once he had a lawyer the news in jail just kept getting worse. He was being charged with felony DUI death and felony child endangerment. The victim’s family wanted life in prison. Worse, there was a strong possibility Nevada’s per se laws could give them the lion’s share of what they wanted.

Krajnak’s life, his daily connection to his wife, the twins and his job would change. He would spend the next six months in jail awaiting trial because he was unable to raise the $250,000 bail that had been set in his case.

“It was an eye-opener for sure,” he said. “Being a combat vet, I handled the worst of the worst. I had to treat them better than I got treated in jail.

I was just shocked by the whole thing. I wasn’t impaired and I value my children so much.”

Now you know this is going to get straightened out because Krajnak hadn’t smoked since the night before the crash, which occurred April 29, 2017, on Boulder Highway at U.S. 95. By his estimate it had been 20 hours. It doesn’t get straightened out. It only gets worse.

Krajnak readily admits he smoked a joint of medical marijuana. The former E6 petty officer 1st class Seabee team member, who served America in Iraq and Afghanistan, suffered a traumatic brain injury from an improvised explosive device that disabled him and ended his 15-year military career.

He moved his family to Nevada. He had a doctor’s medical marijuana card.

JEFF KRAJNAK “The reason for the medical card was PTSD, sleep anxiety. I was on 11 pills from [the] VA before medical marijuana. Using medical [marijuana] I dropped down to two pills. It promoted way better sleep.” Krajnak said.

“The 11 pills — I felt like a zombie half the day. I had to drink three energy drinks just to move. I felt very numb in [the] morning. With medical marijuana I was up and at ’em, ready to go for the day.”

It is a cycle that many veterans report. VA doctors prescribe drugs that leave them depressed and listless. They say marijuana allows them to break that cycle of taking powerful narcotics.

“I believe medical marijuana saved my life,” Krajnak said. “I was drinking a lot because of the PTSD, then I found medical marijuana, I smoked in the evening, calmed me down, helped get good night’s sleep. I medicated after kids were asleep.”

When Krajnak found medical marijuana, he quit those high-octane but perfectly legal prescription drugs, and when he quit the lights came back on.

Twenty hours after he last smoked, Krajnak says, he got up and fed their 7-year-old twins. Then he and his son were off to enjoy a father and son day. They spent the morning at the fossil farm at Shadow Ridge High School.

“My son’s a dinosaur buff.”

What’s better than dinosaur bones to a 7-year-old? Next stop McDonald’s, then off to T-ball.

Crossing town, they exited the U.S. 95 at Boulder Highway near Boulder Station and turned left to travel south toward Henderson where the family lives. Krajnak says he took the exit in the far-right lane where a truck was waiting at the light but he moved to the center lane under the bridge. He says the light turned green and when he entered the intersection, he slammed into a car that Krajnak says had run the light. There were witnesses. It was a split decision according to Krajnak. One witness said Krajnak ran the red.

Two said he didn’t run the red light. Those two witnesses said the other car ran the red light.

Those witnesses told Highway Patrol officials Jeff was in the right: “The Nissan went through the intersection fast and the Nissan was ’T-boned’ by a black jeep (Krajnak’s car). The witness stated from their point of view it looked like the Nissan (the deceased’s car) ran the red light.”

intersection. Lucvininda Stephenson testified at Krajnak’s preliminary hearing that she watched the accident with an unobstructed view of the intersection.

“Our light turned green (if Stephenson is correct, Krajnak’s light would have turned green at the same time) …and then I said to my husband, I said, ‘Oh, my God. He ran.’”

She wasn’t talking about Krajnak, who was charged with running the red light. She was referring to the other car, the grey Nissan.

So, think about that. A person with a panoramic view of the entire intersection remarks about what she saw at that second. The other guy.

The other guy was running the light.

Additionally, her husband, Lee Stephenson, an Air Force and airline pilot, testified he saw the Nissan just prior to collision. “It appeared to be going faster than I would have expected for someone exiting the freeway.”

It doesn’t matter because this is about marijuana and Nevada’s per se law.

Krajnak said: “I was questioned in more detail by (Nevada Highway Patrol Trooper) Guy Liedkie. He gave me three field sobriety tests. I passed all three with no signs of impairment.”

NHP Trooper Liedkie, in securing a search warrant for a blood draw that Krajnak had voluntarily agreed to, would tell Judge Karen Bennett-Haron, “I performed horizontal gaze nystagmus test on him, lack of convergence test and the modified Romberg Balance Test. I did not see any clues on any of those tests. Again, with marijuana it is still possible that he may be under the influence.” Later Liedkie would add, “I did not see any indicators of impairment on the test.”

The other driver, Peter Anthony Napoli, who was not wearing a seatbelt, was taken by ambulance to Sunrise Hospital. Krajnak and his son were also transported. At Sunrise Jeff Krajnak got the news: Napoli, the driver of the other car, had died.

Krajnak said, “I broke down, I cried, I felt horrible somebody lost their life.

My eyes were red from crying — that became the probable cause to take my blood.” That blood became the basis of charges that could send him to prison for decades.

“Thirty-two days later a SWAT team came to my house and arrested me.”

The one prosecution witness who claimed Krajnak ran the light readily admitted he was intently watching Krajnak approach the intersection — in his rearview mirror — which raises the question of how he could watch the light and Krajnak at the same time.

In addition to being charged with driving under the influence resulting in death and failure to obey a traffic signal, the district attorney’s office charged Krajnak with child endangerment for smoking pot 20 hours before driving with his son in the car.

However, there was one witness who watched the other car speed to the

The basis for the arrest, Krajnak’s blood exceeded Nevada’s per se law

Vegas Legal Magazine Summer 2018 | Pg. 23

JEFF KARJNAK

“He gave me three field sobriety tests. I passed all three with no signs of impairment.”

-Jeff Krajnak that basically states that a driver is impaired if they have more than two nanograms of marijuana Delta-9-THC or five nanograms per ml of marijuana metabolite (11-OH-tetrahydrocannabinol) in their bloodstream. Make no mistake about it, the metabolite has no impact on your driving whatsoever. No one claims it does. No competent law enforcement official is going to stand in front of the court and claim the marijuana metabolite is going to impair your ability to drive.

But this isn’t about impairment. It’s about proof that you smoked or ingested marijuana, where recreational marijuana is legal.

You knew this would happen. Everyone knew this would happen.

After the SWAT raid, Jeff went to jail. Jeff stayed in jail in lieu of $250,000 bail. He stayed for six months. He and his family scraped together $8,500 for an attorney.

At preliminary hearing the incongruities of Nevada’s per se law were laid bare. Chief Deputy District Attorney Charles Martinovsky argued, “It’s just he’s impaired. And I’m arguing that he’s per se impaired. But under the first count, he’s not actually impaired. But under the child abuse section he’s impaired if he’s over the legal limit.”

Krajnak’s attorney, Benjamin Durham, responded, “Your Honor, I disagree.

The per se impaired limit does not make somebody impaired. This is an obvious case where he was above the limit and he was clearly not impaired.

“And I would submit to the court that if I had a hundred scientists come in here and testify they would testify that four nanograms of marijuana is not enough to impair anybody. … He wasn’t impaired in this case. He wasn’t under the influence of anything. And that’s the predicate act for the child abuse statute.”

Krajnak was bound over on all three charges. After legal work for his preliminary hearing and requests for bail reduction, (Judge Carolyn Ellsworth eventually released Krajnak on $20,000 bail) the Krajnaks had burned through savings. His only choice after six months in jail was a public defender and a plea deal. Trials aren’t for middle class people of

Vegas Legal Magazine Summer 2018 | Pg. 24

modest means. A couple raising twins on a veteran’s disability check and a wife’s modest income aren’t taking anything to trial.

Of the long wait for sentencing Krajnak says, “It’s a roller coaster, some days are good some are not. I refuse to get on opiates again. My public defender Bernard Little negotiated the plea. He was confident he could beat DUI death, but they would have hammered me on child endangerment and I would probably end up with 16 years.”

Now, it’s like slow motion for Krajnak, who is back at home, back on prescription medication because medical marijuana is legal medicine in Nevada unless you are charged with a crime in Nevada, a crime like being under the influence of medical marijuana.

“I don’t feel I did anything wrong. It was difficult to take a deal. [I took it because] they pulled child neglect charge off. I wanted the Alford clause in my deal.” An Alford plea is an admission that the state could prove its case without the defendant admitting guilt.

Eventually, Krajnak says the weight of the expense wore the family down, saying, “I’m tired of it, my wife is tired of it. If I have to go to prison for a year, it’s just another deployment for her. I’m a prisoner in the Nevada system. I get in a car accident that’s not my fault and now I’m considered a danger to the community and my children. It’s just a hard pill to swallow.

‘I have proof from a forensic investigator. I did not run the red light. Speed [was] not [a] factor. How was this reckless driving?”

No one has decisively proved that Krajnak caused the accident or that he was driving recklessly. The sad truth is that, in Nevada it doesn’t have to be reckless driving. Just getting in an accident days after using legal medical or recreational marijuana in Nevada is reckless driving and that could change your life forever.

Krajnak faces sentencing on September 10, 2018. We will be updating his case on the Vegas Legal Podcast which is available on Stitcher, Facebook and iTunes and in the Fall issue of Vegas Legal Magazine.

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ECONOMIC EXPERT REPORT DEFAMATION

–By Stan V. Smith, Ph. D. with Kyle Lauterhahn

I am disgrac’d, impeach’d and baffled herePierc’d to the soul with slander’s venomed spear.

-Richard II, Act 1, Scene 1

Readers of this space will recall that in last issue’s column I spoke

to the value of a good name in the world of personal finance as it relates to one’s creditworthiness. But what about personal or business reputation? Through malice, greed, or just simple laziness, defamatory statements can venomously “pierce” you. The damage due to defamation can seem an unreasonable burden as it seeps through your personal life and professional career in seemingly intangible ways. But an economist can provide opinions regarding the tangible damages to reasonable degree of economic certainty.

Not just individuals, but for-profit businesses and non-profit organizations can also be defamed with long-lasting and farranging impact. Through social media, a defamatory accusation can quickly become “viral,” and falsehoods can spread around the web and the world in an instant, reducing the value of your brand and your company in the eyes of customers and prospects.

An economist can calculate a projection of business, but for the defamation, in comparison to what business remains in the wake of the defamation.

Defamation of Individuals Where would you be in your career without the reputation that you have worked so hard to establish? The false tarnishing of a Vegas Legal Magazine Summer 2018 | Pg. 26

reputation can strip away years of professional accomplishment or permanently damage a promising career in its infancy. The derailment of a career through defamation can result in considerable damages, both financial and emotional. Forensic economists, using standard approaches, can assist in evaluating the losses.

In one instance I have seen, a physician rightfully accused of theft by padding his billing sought to take down others with him, and falsely accused a colleague of the same practice. The honest physician was wrongfully terminated from his position, spent months unemployed and could not find new employment in his metro area. In order to maintain his family, he was forced to take a job hours away - requiring him to stay out of town for days each week while his family remained at home. In this instance damages were shown for the past loss when the doctor was unemployed, but also for the difference in his earning in his new position and the costs of travel and maintaining a second residence for this new position.

Frequently defamation occurs when an individual is early in a career, looking to make the next step to professional success.

Consider a talented junior researcher who is applying for a doctorate program, but whose boss makes false statements in a letter of recommendation in order to keep this researcher working

DEFAMATION in his laboratory. For this junior researcher fighting to restore her good name, her opportunity to earn a doctorate degree will be delayed, or even could be stopped cold and her career will remain at the level of a junior researcher forever. A delay several years in obtaining a doctorate degree means a loss for several years of the six-figure salary that an individual can earn with such a credential.

A delay in career is a lifetime loss. If opportunity to earn a doctorate degree is completely lost because of the defamation, then permanent difference in earnings for two projected career paths can be calculated.

At the other end, I have seen educators forced to retire early due to false accusations that they did not protect students, when in fact they were the strongest protectors of students. Early retirement leads to not only years of lost earnings in employment, but also a reduction in pension income when one needs to take pension benefits at an earlier age.

In each of the examples above, in addition to the loss of earnings, the individuals also have a considerable impact to their social and emotional well-being. Claims can be made and testimony can be provided for the loss of enjoyment of life, well-recognized in the State of Nevada (See my column in Vegas Legal, August 2016 “Economic Damages in Nevada).

Victims of defamation frequently report going through protracted emotional turbulence and upset, experiencing significant loss of enjoyment of life. These damages can persist long after the defamation is made – victims of defamation in early life frequently report difficulty trusting others in all areas of life, leading to impaired interpersonal relationships. In addition, while the initial defamation could spread like wildfire, the spread of the truth to mend one’s reputation may not spread with such enthusiasm, leaving the defamed unsure of who knows the truth and who believes false accusations. The impact on one’s career can lead to the loss of identity from one’s occupation, as well as the loss of relationships with professional colleagues. The standard process for evaluating the loss of enjoyment of life applies in these instances.

Defamation of Businesses and Organizations Social Media and online review sites, while frequently helpful as a tool for reaching new and existing customers, can also be forums to false statements to push away customers. Defamation can be ongoing while the false review still stands, or can even spur additional false statements among falsely alarmed customers. Such information may remain forever on the web.

does not have to close or experience annual losses for a loss to exist from the defamation. The business could still be operating “in the black,” but have a reduction in profits from a reduced sales or reasonably expected future growth in sales. Consider a chain of restaurants wrongfully accused of racial bias in serving customers.

This chain that was once opening five new locations per year could now find itself opening only a single location each year (or even closing locations). The growth of the business could be based on the past growth trend, or a trend based on comparable operations.

In the instance of sales lost at a single location, an economist would consider the loss of profit from each customer after the marginal costs associated with serving each customer. Fixed costs, such as rent and utilities, are largely incurred no matter the amount of sales, and have been incurred by the business to date. Defamation can lead a business to have additional costs for marketing to reach out to disaffected customers, and promotions such as offering discounts to entice new business.

While we would hope that those that do good can be spared by defamation, it is an unfortunate occurrence that also needs appropriate attention. A defamatory statement about a church leader, or a church or other not-for-profit organizations can set off public mistrust leading to reduced donations, and it can impair the organization’s ability to do important public good. A projection of expected donations can be made against the actual donations following the defamation, again using standard economic practices.

I hope that no one finds themselves in the position of fighting off spears of slander or libel. Often the damage can be permanent.

However, an awareness of the methods to calculate damages and opportunities for restitution can lead to a significant recovery.

Stan V. Smith, Ph.D., is VLM’s Quarterly Economics Columnist and president of Smith Economics Group, Ltd., headquartered in Chicago. Trained at the University of Chicago (one of the world’s pre-eminent institutions for the study of economics and the home of the law and economics movement), Smith has also taught at the university and co-authored the first textbook on the subject of economic damages. A nationally-renowned expert in economics who has testified nationwide in personal injury, wrongful death and commercial damages cases, Smith has assisted thousands of law firms in successful results for both plaintiffs and defendants, including the U.S. Department of Justice. To that end, Smith also developed the first course in forensic economics at DePaul University, and pioneered the concept of “hedonic damages,” testifying about the topic in landmark cases. His work has been featured in the ABA Journal, National Law Journal, and on the front page of the Wall Street Journal. Kyle Lauterhahn is a Senior Economic Analyst at Smith Economics Group in Chicago. Smith Economics Group, Ltd., is located at 1165 N. Clark Street, Suite 600, Chicago, IL, 60610. Dr. Smith may be reached at 312-943-1551, and at Stan@ SmithEconomics.com.

Using standard economic practices, a forensic economist can calculate the damage to a business from defamation. A business Vegas Legal Magazine Summer 2018 | Pg. 27

LETTER FROM AN ADVOCATE: An Experience With CASA & The Foster Children Of Clark County.

–By Rita Ramirez

Nearly 3,400 children within Clark County are currently a part of the child welfare system. That’s 3,400 children who were not only abused and/ or neglected by their parents, but to no fault of their own, are now part of a very complex and overburdened system, which cannot adequately meet all of the children’s needs in a timely manner. These children’s voices sometimes get lost within the system and they sometimes lose hope. Nearly two years ago, as I sat at a Court Appointed Special Advocate orientation, learning about these children for the first time, I realized that I couldn’t walk away without being a part of the solution. The solution was becoming a Court Appointed Special Advocate (CASA) volunteer.

Court Appointed Special Advocates or CASA volunteers are individuals who advocate on behalf of the abused and neglected children in the child welfare system. Foster children who are provided a CASA volunteer are being given a voice, through someone who speaks up on their behalf and stands up for what is in their best interests. CASA volunteers are appointed by a Dependency Judge/Hearing Master to become a sworn officer of the court and assigned to represent one child or a sibling group. CASA volunteers work alongside the children’s team of case workers, foster parents, natural parents, therapists and legal counsel, with the main goal of ensuring children’s needs are met and they are thriving in safe, loving and permanent home. CASA volunteers do so by attending meetings, reviewing documents, observing visitations between children and natural parents, and communicating with anyone who is involved on the children’s team. Most importantly, a CASA volunteer visits the children on a regular and consistent basis and is there for the children as they often times transition through multiple placements and schools. From stressing the importance of making sure a child receives an updated pair of glasses to questioning the safety of a child’s current placement, a CASA volunteer’s role is always unpredictable, but nevertheless important.

As a CASA volunteer, I personally have the opportunity of advocating on behalf of seven (7) amazing children, ranging from the ages of 3 to 16. My first case includes a sibling group of four (4) toddlers. As their CASA volunteer I make sure I am present in their lives and sometimes was required to plan impromptu play sessions, when their natural parents did not show up for scheduled visitations. I have watched as these children lost their father to incarceration, and an eventual deportation, and their mother’s parental rights terminated, after succumbing to a life of drug abuse. However, not only have I been present for the unfortunate events occurring in their lives, I have also been fortunate to experience significant milestones with these four toddlers. I watched the oldest child enter kindergarten and the youngest child learn to speak and be successfully potty-trained. I also unknowingly became the first to ever take these children to see their first movie, at a movie theater. I have also watched as

they successfully transitioned from a foster home into the home of their paternal grandparents, who are their adoptive resource. After months of hardship, we now patiently await this placement becoming their permanent home.

Less than a year after becoming a CASA volunteer, I chose to take on a second case involving teenagers, as an attempt to serve more of a mentorship role. I never expected what came next. What I thought would be a fight to have two siblings, ages 13 and 14, be adopted together, turned out to be so much more. I quickly learned that these two siblings had a 16 year old sister. Sadly, the older sister had run away from the system a year and a half prior and ended up victimized by sex trafficking. After months of little communication, we successfully convinced this 16-year-old girl to return into the foster care system. Today, she is no longer a victim of sex trafficking and after never having attended high school, she has entered an individualized education program that has allowed her to progress in school greatly. A couple of months after being assigned to this case, there were a few hiccups involving the youngest child. As a CASA volunteer, I followed this child through four foster homes, over the course of two weeks, after she was abruptly removed from what had been her foster home for two years. This child has been in the system for over 6 years and no one had ever noticed that she was failing every course in school. After months of advocating on her behalf, this young girl will be entering high school next year, with plenty of resources to assist her during the school day, and hopefully keep her motivated to graduate. These two teenage girls, along with their teenage brother are now living with someone whom they consider a fictive kin. If all goes as we hope, they will be adopted by the end of this year.

As a CASA volunteer, I have woken up a few hours earlier at times, gone to bed a few hours later, given up many Sundays, and rushed between hearings, meetings and my job on numerous occasions. Looking back on my experiences, what may have been minor inconveniences in my day became large successful strides in the lives of all of these children.

Becoming a CASA volunteer has thus far been an exhilarating experience for me. It personally led me to discover a new passion that continues to guide me towards a future in advocacy. Being a CASA volunteer is constantly providing me with humbling experiences that have allowed me to acknowledge how blessed my life truly is. I have grown as an individual and gained a strength and compassion that I never knew I had. I have also come to the realization that as a CASA volunteer, I have changed more than the lives of these children I have encountered, I have changed my own.

If you or anyone you know would like to become a CASA volunteer, please visit casalasvegas.org for further information or call (702) 455-4306.

Vegas Legal Magazine Summer 2018 | Pg. 29

Lawsuits & Scandals

WYNN RESORTS Looks To The Future —By Carol Miller

After a firestorm of sexual harassment allegations against its founder

Steve Wynn, and long court battles, a period of calm appears to have settled over Wynn Resorts Ltd. But, as residents of the Las Vegas Valley well know, calm can be replaced with hazardous wind storms in the blink of an eye. Wynn Resorts, however, seems to be recovering for the most turbulent period in its history.

For the last six years, the company had been locked in a grueling legal battle with the man who had been its largest shareholder at one point – Japanese gaming mogul Kazuo Okada. An early investor in Wynn Las Vegas, Okada had been ousted by the Wynn Resorts’ board of directors in 2012. The board cited, in part, business dealings with officials in the Philippines, which the board alleged smacked of corruption. On March 31 of this year, Wynn Resorts announced it had settled most claims brought by and Tokyo-based Universal Entertainment Corp., – and its subsidiary company Aruze – for $2.4 billion. (The two companies, Universal and Aruze, were always referred to in court as the “Okada entities”).

One last Wynn Resorts’ claim, involving alleged breach of fiduciary duty against Okada, was settled soon after the March 31st settlement announcement.

War of the Wynns With the original lawsuit claimant, Okada, out of the legal picture, the courtroom fight came down to a battle between Steve Wynn and his ex-wife, Elaine Wynn. While the couple had divorced back in 2010, in a seemingly-amicable way, their after-divorce business relationship blew up in a very public way after Elaine entered the fight between her ex-husband and Okada. Elaine turned out to be an ally of Okada’s legal team. Elaine, in a late 2017 court hearing in Las Vegas, was also the one to bring up the sealed $7.5 million settlement from 2005. The settlement was between Steve Wynn and a former Wynn Resorts manicurist. The media frenzy to find out more details lead to a January 2018 Wall Street Journal article, which detailed a mountain of sexual harassments and sexual misconduct allegations against casino mogul Steve Wynn. Included was a claim that the Wynn Resorts’ manicurist on the receiving end of a $7.5 million

Vegas Legal Magazine Summer 2018 | Pg. 30

settlement had claimed that Steve Wynn had pressured her into having sex with him.

A February 2nd Bloomberg News story added to the pressure on Steve Wynn with a report that a paternity claim was involved in the $7.5 million settlement with the manicurist. As the tsunami of bad publicity continued, Steve Wynn suddenly resigned from the company he had founded. That Feb. 6 resignation of Steve Wynn also came with it an offer by Steve Wynn to release control of Elaine Wynn’s Wynn Resorts’ share. Steve Wynn had maintained voting control of Elaine Wynn’s shares since their 2010 divorce, as the two had agreed upon at the time. But Elaine Wynn had sought to gain control of her shares back after the ouster of Okada from the Wynn Resorts’ board in 2012.

Elaine Wynn, who has served on the Wynn Resorts board, but lost her seat, decided to continue her legal fight over damages. Those damages, she claimed, were owed to her over the loss of her seat on the Wynn Resorts’ board. A contentious – and highly public – evidentiary hearing was held early this past April. Elaine took the witness stand and, in a jaw-dropping moment, testified that she had heard of allegations that Steve Wynn had “raped” a Wynn employee. The reference was made to the so-called “2005 incident,” which had resulted in the $7.5 million settlement.

Steve Wynn had issued a statement after the January Wall Street Journal article was published, denying the allegations.

“The idea that I ever assaulted any woman is preposterous,” the Wynn Resorts founder said in the statement.

“A Peace Treaty” in the Wynns’ War Not long after the early April evidentiary hearing, Wynn Resorts announced a $25 million settlement with Elaine Wynn over her remaining claims, including the loss of her seat on the Wynn board.

Steve Wynn’s stake in the company had been valued at around $2.2 billion.

But now that Steve Wynn had sold all his remaining shares of Wynn Resorts, Elaine Wynn was the company’s largest shareholder -- with a 9

percent stake in the company. She would also prove to be a force to be reckoned with in reshaping the company.

Wynn Resorts also had a new chief executive in Matt Maddox, who was named when Steve Wynn resigned as chairman in February. Maddox had served as president of Wynn Resorts since 2013.

Elaine Wynn, fresh off her $25 million settlement – and now in control of her own Wynn shares – sought to infuse the Wynn board with fresh blood.

Steve Wynn’s ex-wife started making the plans, publicly, in an April 17th regulatory filing. In that filing, Elaine Wynn said she wanted to remake the company board, with new members, Bloomberg reported. In the filing, Elaine Wynn also stated her desire to have board members “declassified.”

The term “declassified,” in this context, refers to the practice of having board members run for election every year.

Elaine Wynn also wanted the option of nominating her own board members. Further, Elaine Wynn stated in the filing that she didn’t want to sell Wynn’s under-construction casino, near Boston, until Wynn saw major changes in the way Wynn Resorts was run, Bloomberg reported.

The powerful influence of Elaine Wynn was evident in mid-May when, just prior to Wynn Resorts’ annual meeting, Elaine was successful in pushing a longtime friend of her ex-husband off the board. That board member, John Hagenbuch, said he would not run for re-election, in a company announcement made just prior to Wynn’s May 16 annual meeting in Las Vegas.

Former Nevada Gov. Bob Miller, also a longtime Wynn Resorts’ board member, also resigned around the same time. These departures resulted in a 60 percent board-turnover percentage just since February, according to Bloomberg.

The Future of Wynn Resorts While rumors had swirled since early April that MGM Resorts might be eyeing a takeover of Wynn Resorts, later moves by MGM Resorts seemed to throw cold water on the idea.

An early April New York Post article quoted an “unnamed source” stating, “I think if the Wynn CEO (Matt Maddox) gets his deal, he will sell.” That same source said, back in early April, that there was a 50 percent chance that MGM Resorts would buy Wynn Resorts in the “next several months.”

But as of mid-June, there were few indicators that such a deal was anywhere close to fruition. In fact, moves made by MGM Resorts indicated just the opposite was likely true, according to the investment business source, The Fool. In a May 22nd article, The Fool pointed to MGM’s then-just announced $2 billion stock repurchase authorization. That comes just after MGM completed a separate $1 billion share buyback program. MGM Resorts CEO Jim Murren has previously said that his focus now is on MGM Resorts “upgrading its facilities,” according to The Fool.

Another company, possibly interested in Wynn Resorts, is rumored to be Malaysian company Genting Group – owner of the Resorts World Casinos in Malaysia, Singapore and the Philippines, New York and soon, Las Vegas, according to the site Casinos.org. Steve Wynn’s longtime gaming rival, Sheldon Adelson, was also mentioned by Casinos.org. Adelson’s Sands has a market cap of more than $55 billion, according to Casinos.org.

Regardless of future takeover possibilities, Wynn Resorts’ stabilization is welcome news for Southern Nevada’s economy.

SENATOR DEAN HELLER

Looks For Cooperation In The Age Of Political Polarization —By Valerie Miller

In this time of political polarization, Dean Heller likes to think there is still some room for both sides to work together.

Now running for re-election to the U.S. Senate, Heller maintains that while he is a Republican, he prefers to think of himself instead as a “conservative Nevadan.” The Carson City, Nev. native says he’ll keep an open mind, and takes good ideas where he finds them.

“I don’t care whose idea it is. I don’t care if it comes from a Democrat, Republican or comes from the White House, if it is a good idea and it helps America and helps Nevada, I am going to support it,” says Heller.

The senator is proud of his “bipartisan” credentials: Heller was ranked fifth by Lugar’s McCourt School Bipartisan Index in 2017. The index is put out by the McCourt School of Public Policy, which is part of Georgetown University.

Who’s In Charge Here?

Dean Heller hasn’t had it especially easy these past few years. The senator from Nevada, like his fellow members of Congress, has witnessed a period of enormous political change in the country.

For Republicans like Heller, especially, the political landscape has been challenging. Politics have never been the same since the arrival of Donald Trump on the campaign scene three years ago.

Trump’s November 2016 election stunned the world, and also gave the Republicans control of the presidency and both houses of Congress.

Suddenly, Republicans had the voting power to make good on longpromised measures, such as repealing Obamacare and strengthening the country’s borders.

The current political atmosphere is polarized. Vitriol is everywhere, and some of it is downright nasty, including late-night television host Samantha Bee calling First Daughter Ivanka trump the “C” word on her TBS show.

Heller was one of the senators receiving a lot of pressure, from both sides, prior to his votes on the repeal of parts of Obamacare. Ultimately, Heller voted against a Republican measure that would have curtailed the Affordable Care Act’s Medicaid expansion. He defends his vote now, maintaining that the proposed legislation would have caused thousands of Nevadans to lose their health insurance.

Heller would like to see more civility. “There’s a lot of political white noise and I think both sides need to calm down,” he says.

“I did what I said I was going to do,” Heller says, “protect individuals in Nevada who depend on Medicaid.”

Many question if there is any “meeting in the middle” anymore.

Vegas Legal Magazine Summer 2018 | Pg. 35

Dean and his wife on horseback at a Labor Day parade in 2017

Nevertheless, Heller says he is still convinced Obamacare, overall, is bad for the country. The senator would later vote in favor of a “skinny repeal” of some of the ACA’s most contentions parts. Those parts included the much-maligned “individual mandate,” which required every person to get health insurance or receive penalties. While Heller voted in favor of the “skinny repeal,” the Republican measure was doomed, anyway, when Arizona Republican Senator John McCain did his famous “thumbs down” jester. (The McCain vote has been widely criticized as McCain’s payback to Trump for their long feud, rather than a vote on the merits of the ‘skinny repeal” itself).

Another long-time Republican wish-list item is securing the southern border with Mexico. The most conservative of Republican lawmakers tend to side with the president, while a number of more-moderate -- and liberal-leaning -- Republicans have sought to work with a few moderate Democrats on what is often called “comprehensive immigration reform.”

Almost all Democrats have fought Trump’s proposed border wall. The stalemate just doesn’t make any sense to Heller, who had tried years ago to work on a solution.

“Five or six years ago, we had a comprehensive immigration reform package that was on the Senate floor and passed. It went over to the House and died. I was one of 12 (or) 13 Republicans that voted for that immigration package,” he recalls during an interview with a Vegas Legal Magazine reporter. “My argument all along is, had that package passed, we would not be having the very discussion that you and I are having right now. Because it would have fixed a lot of these problems, including building the wall.”

Heller blames much of the impasse on Democratic obstructionism.

“There was $46 billion in that legislation to build the wall. If that piece of legislation had passed, here five years later we would have had a much different discussion.” He maintains. “There was $46 billion in there. The

Vegas Legal Magazine Summer 2018 | Pg. 36

bill that we have now for DACA (or Deferred Action for Childhood Arrivals) is $25 billion. Stop and think about that for a minute. The Senate as a whole, every Democrat I believe voted for it, would have allowed $46 billion for border security. Today, they won’t allow $25 billion for border security. Clearly, (it’s) politics.”

Obstructing Traffic “Obstructionism” is definitely something that gets under Heller’s skin.

The Nevada senator is frustrated with the snail’s pace at which President Trump’s nominees are going through the congressional confirmation process. Heller also contrasts that to how Republicans treated thenPresident Barack Obama’s nominees when Obama became president in 2009.

“I have served under three presidents: President (George W.) Bush, President Obama and President Trump, and I haven’t seen anything like what I have seen under President Trump. Under Obama, we gave him the cabinet that he wanted,” Heller recounts. “There weren’t too many Republicans who were high on (approving then-Sen.) John Kerry (as secretary of state). There weren’t that many Republicans who were that high on (approving secretary of state nominee) Hillary Clinton. But, this was the Obama Administration, and we recognized and respected that fact that he won the presidential race, and he should be able to have the cabinet that he wants.”

Heller says no such deference has been shown to Donald Trump after he took the oath of office in January 2017.

“That is not the way the Democrats think today. The way that it works in the United States Senate, (is) you have 30 hours of debate on every judge, every nominee, every cabinet member,” He points out. “Thirty hours of debate means that you can only get at one or two of them during a span of one week when the Senate floor is open. Either the Democrats are going to

DEAN HELLER give a little bit, or (the Senate) is going to have to change the rules to lessen the time of debate.”

“That math works out to it taking 11 years to confirm all Trump’s appointments, at this pace,” Heller adds. “That’s longer than any president can be in office, even if re-elected. The stalling tactics by Democrats may force a change in senate rules to allow a debate time of no more than five hours for low-level nominees, such as undersecretaries of cabinets,” Heller predicts.

“The Most-Important Mid-Term Of Our Lifetime?”

“Every election is the most important in our lifetime. I have been hearing that for 25 years and this one isn’t any different than that,” Heller gets a chuckle out of some commentators calling this 2018 election ‘The MostImportant Mid-Term of Our Lifetime.’ It is, however, a vitally important election, he adds.

“But having said that, what you are hearing is true. The Democrats only had three issues that they wanted to work (on) if they take the majority and that is ‘impeach,’ ‘impeach,’ ‘impeach.’ So, no doubt … they want to impeach this president if they were to take the majority of the either the House or the Senate,” Heller warns. “If (Democrats) take one and not the other, all they are going to do is hold hearings and they will bring this place to a complete standstill.”

While Heller and then-candidate Donald Trump had their differences (Heller wouldn’t support Trump’s candidacy), their relationship seems much different today. Heller credits that with Trump working with him to find solutions to issues like legal status for DACA recipients, and also the good Trump has done for the country since becoming president.

“Their goal is to stop this guy,” Heller says of the forces aligned against President Trump. “He has been plowing forward. He has signed two pieces of legislation in early June, the veterans’ bill and childhood cancer bill called, ‘The Mission Act.’ He’s plowing forward, regardless of what people are hearing about from the press.”

Heller decries the onslaught of negative media coverage against Trump, which he says ignores the successes of Republicans. Regardless, Heller says he’s as determined as Trump. “[The press] would rather talk about [Special Counsel Robert] Mueller or [porn star] Stormy Daniels, or whatever the story of the day is, instead of the success of his administration, including the economy,” he concludes.

“So, we are plowing forward.”

--Vegas Legal Magazine: How did your childhood, growing up in Northern Nevada, shape your future career path and outlook?

Dean Heller: “I grew up in Carson City learning the importance of hard work, discipline, and kindness – values that many Nevadans share. My parents worked hard to support me and my brothers and sisters. I attended Carson High School and delivered the newspapers every morning. My mom was a school cook and my father was an auto mechanic, and I actually worked in my dad’s garage. So, I know the value of a dollar, and the sweat that goes into a paycheck. I’d like to point out that I’m probably the only U.S. Senator who can tune up your car or fix your transmission.”

VLM: The stock market and the overall economy has grown quite a bit under the presidency of Donald Trump. With the passage of Trump’s tax cuts, what impact do you expect to see on Nevada’s economy?

DH: “We are already seeing the positive impacts of tax reform in Nevada, from Ely to Las Vegas. Look no further than the Strip for proof – construction for the once-stalled Fontainebleau resort project, now called The Drew, has resumed. The project is expected to create 10,000 jobs in Southern Nevada alone. But this is just one example. Since the Tax Cuts and Jobs Act was signed into law only five months ago about 11,000 Nevadans got a raise, roughly 13,000 Nevadans received special bonuses of up to $2,000, up to 25,000 Nevadans may benefit from college tuition assistance, increased pension funding, expanded maternity and paternity leave, and more paid holidays. Whether it is a hotel in Ely that used its savings from tax reform to give its workers higher starting wages, or South Point Hotel, Casino & Spa which doubled its 2,300 full-time workers’ bonuses, our tax cut plan is giving Nevadans a much-deserved break.

As we move forward with the next six months, I’m encouraged by this growth and believe Nevada is in a great position. I think we are only seeing the beginning of tax reform’s positive impact in Nevada and that as more businesses see their savings, there will be more “Hiring” signs in windows and workers will see more take-home pay, increased wages, and benefits.

I’m optimistic this historic law will continue to lift middle-class families and our local communities, and I will continue to do everything I can to build on this momentum.”

Dean with a constituent in Ely, Nevada

Vegas Legal Magazine Summer 2018 | Pg. 37

Dean With Airman At Nellis Air Force Base

VLM: Nevada has a high percentage of small businesses making up the state’s economy. What are your plans to help small business owners grow and succeed?

DH: “When Nevada’s small businesses succeed, our state and workers succeed and that’s why I’m a strong supporter of rolling back burdensome regulations that hurt our local job creators and fought to pass tax reform, which lowers rates for these companies. I know how important Nevada’s 428,000 small businesses are to helping our local communities and I’m proud that in 2017 alone Congress repealed 15 heavy handed regulations imposed by President Obama. Recently, President Trump signed into law my Small Business Credit Availability Act, bipartisan legislation to help small businesses owners access more capital to grow their businesses. Also, I’ve repeatedly fought for Congress to repeal the Cadillac tax, and earlier this year I voted for legislation that has delayed the disastrous tax for two years. As Nevada’s U.S. Senator, I will continue to fight for our state’s job creators by championing policies that allow them to focus on hiring, investing, and expanding rather than filling out paperwork.”

VLM: You originally declined to endorse Republican nominee Donald Trump for president in 2016. But after Trump was elected, you worked with him to pass tax reform. Later, after the 1 October Las Vegas shooting, you flew to Las Vegas with President Trump. Can you talk about how your views of Donald Trump have changed, and what your relationship with the president is like today?

DH: “I’ve worked with three presidents throughout my time in Congress – Presidents Bush, Obama, and now President Trump. So, I’ve been able to get a good birds-eye view of how these White Houses have interacted with the Hill. And I can tell you that the Trump Administration is the most engaged in listening to members, including myself, and that goes a long way when crafting policy like tax reform. The President spends a lot of time with legislators compared to the previous Administrations who didn’t give that kind of access.

Vegas Legal Magazine Summer 2018 | Pg. 38

In the last year and a half, I’ve worked with this White House on a number of important policies to help Nevadans. This is a president with a strong business background who is bringing people to the table for input and new ideas – and it is working. Just take a look at some of the accomplishments Congress and the White House have been able to deliver for the American people: tax reform to families and small business owners, accountability at the VA for our veterans, a growing economy with recordlow unemployment, the highest pay raise in eight years for our troops, and more.”

VLM: Recently, the U.S. House of Representatives overwhelmingly voted to approve a measure which could eventually lead to using Yucca Mountain as a nuclear waste dump site. Later, you and Sen. Catherine Cortez Masto, D-Nev., urged the chairman and ranking Democrat on the Senate Appropriations subcommittee on energy and water to keep the Yucca Mountain funding out of the 2019 spending bill. You were successful in that effort. What is next in the fight to stop nuclear waste from being stored at Yucca Mountain?

DH: “As long as I’m in the U.S. Senate, Yucca Mountain is dead – it is as simple as that. I will not allow the Administration to shove funding for this project down Nevada’s throat. Last year, I blocked taxpayer dollars to resuscitate this mothballed project, and I will continue to do again. While the U.S. House of Representatives has approved millions of dollars to revive Yucca Mountain, I’m stopping their misguided and dangerous push at every turn. Not only have I excluded federal funds for Yucca Mountain in the recently-signed omnibus package, in one week alone I successfully blocked funds not once, but twice while my opponent was asleep on the job. Yucca Mountain poses a serious threat to our economy, and Nevadans’ health. Under my watch Yucca Mountain is dead and it will stay that way.”

VLM: One of your most-talked about votes in the Senate was your “yes’ vote last summer on the so-called “skinny repeal” of parts of the Affordable Care Act, such as the individual mandate. That measure

DEAN HELLER ultimately failed. But can you explain why you voted “yes” on the “skinny repeal” of Obamacare, while you would not support the earlier effort to repeal parts that involved the Medicaid expansion?

DH: “I did what I said I was going to do – protect individuals in Nevada who depend on Medicaid - and “skinny repeal” did not touch Nevada’s Medicaid expansion dollars. Obamacare has been an abject failure in Nevada. Last summer, Nevadans in 14 of the 17 counties were facing no health care options until an insurer stepped in last minute. Now those Nevadans have one health care option. That’s not [a] choice. Additionally, premiums and deductibles have skyrocketed, and tens of thousands of Nevadans were forced to pay a fine for a product they likely couldn’t afford.”

VLM: High-profile, tragic school shootings have been in the news again in recent months. You have come out in support of the Fix NICS Act to strengthen background checks. Do you support having more armed security at schools, arming teachers, or instituting other guncontrol measures, like a ban on assault rifles?

DH: “I helped introduce the Fix NICS Act in the fall, and I worked with my colleagues and the Administration to push it through Congress and into law as part of the omnibus package signed by the President in March.

Also incorporated in that law is the Stop School Violence Act, a bipartisan bill that I helped introduce with my colleagues that gives communities and schools the federal resources they need to train students, teachers, and school personnel to identify and thwart threats of violence.”

As a strong supporter of the Second Amendment, I do not believe in restricting the constitutional right of law-abiding Americans. State legislatures should decide what measures, if at all, that they want to take. Florida did so after the [Feb. 14th high school shooting] tragedy in Parkland. But what is best for Florida may not be best for Nevada. So, when it comes to specific proposals that involve school districts, I believe those are decisions that are best made at the state and local levels.”

VLM: What do you think should be done about the roughly 11 million undocumented immigrants in the United States (with that number estimated to be even higher by some sources)? Also, do you support President Trump building a border wall with Mexico? And, should the funding for a border wall -- and an end to “chain migration” – be part of any deal for permanent legal status for DACA recipients?

DH: “Children who came to our country through no fault of their own should have a solution to stay in the U.S. legally. That is why I am a cosponsor of the bipartisan BRIDGE Act. I have voted twice to provide a permanent solution for DREAMers, while also securing our borders.

Unfortunately, however, Democrats’ political posturing prevented us from having an open debate and sending the President a bill that he will sign.

Congress needs to reform our broken immigration system, and any fix must include border security. Once I was able to secure border funding, I

was one of 14 Republicans to support bipartisan immigration reform four years ago. The bipartisan legislation took an important step forward in providing a permanent solution for DREAMers, but unfortunately did not make it out of Congress.

We also must take action to keep our neighborhoods safe as dangerous brutal gangs like MS-13 grow and carry out acts of violence in Nevada and across the country. Criminal undocumented immigrants associated with brutal gangs like MS-13, whose members have been charged with murder in Nevada, must be removed from the United States in order to enhance public safety. I introduced a bill that would do just that – called the Criminal Alien Gang Member Removal Act. My bill safeguards our communities, and children from violent gangs by expediting the removal of criminal gang members and preventing them from entering the country in the first place.”

VLM: When television personality Samantha Bee recently made a vile insult aimed a First Daughter Ivanka Trump, it was just one of the latest examples of the nasty discourse along political lines. Do you see a way to bridge the divide between the left and the right, or at least help people to engage in civil political discussions?

DH: “It is wrong to say hateful, vile comments no matter who you are, famous or not famous, and I hope this disgraceful pattern stops. We even have our own bloggers in the state that like to practice name-calling and to rile up both sides. There’s a lot of political white noise and I think both sides need to calm down.”

VLM: What would you say to those Nevada voters who may be undecided on whether they will vote for you, or your Democratic opponent, in November? How do you plan to make their lives better, if re-elected?

DH: “I get things done for Nevada, and my opponent simply has not.

This state is my home, my family’s home, and I want to make it a place where all Nevadans can get ahead. And that’s what I’ve done in my first term. Veterans are getting the care they’ve earned, Nevadans’ paychecks are bigger, and we finally have this economy booming again. Nevadans want a Senator who will take action and produce results and as the 5th most bipartisan Senator in the U.S. Senate, I’ve proven that I will work with anyone from any party to move our state forward. In Congress, I’ve helped push into law bills that will make our schools safer and give our law enforcement officials the tools they need to reduce the rape kit backlog and deliver justice for victims. As Nevada’s U.S. Senator, I will continue to tackle and deliver solutions to our state’s most challenging issues. I’m working to fight Nevada’s drug crisis, overhaul our aging infrastructure, fully reform the VA, and bring prosperity to Nevadans in all 17 counties. I will continue to push for policies that boost our economy and create jobs and foster an environment that allows our small businesses to thrive.”

Valerie Miller is a journalist based in the Las Vegas Valley. She can be reached at (702) 683-3986 or valeriemusicmagic@yahoo.com.

Vegas Legal Magazine Summer 2018 | Pg. 39

COVER STORY

SHERIFF LOMBARDO

Focuses On Keeping Las Vegas Safe —By Valerie Miller

In almost an instant, Joe Lombardo became a familiar face around the

world last October after the unthinkable happened: A gunman opened fire right on the Las Vegas Strip.

The Clark County sheriff, visibly anguished, nevertheless stood strong at televised press conferences in the days and weeks following the attack.

A 30-year veteran of law enforcement, Lombardo looks back at the coverage of the 1 October tragedy and says he tried to keep people “calm” in the aftermath of the worst mass shooting in modern U.S. history.

“Yes, there was mass media, generating an intense interest in the latest information. Consequently, I felt it was my role – my responsibility – to bring a level of calm to the confusion,” Lombardo tells Vegas Legal Magazine. “That was my intent in the aftermath, and in early briefings about the shooting.”

Stephen Paddock, the alleged shooter, is believed to be the lone gunman who took the lives of 58 people – mostly Route 91 Harvest Festival country music concert goers – and wounded hundreds of others. Paddock had a small arsenal in his room on the 32nd floor of the Mandalay Bay Resort.

Paddock would ultimately take his own life, right after the massacre.

The Las Vegas Metropolitan Police Department, or Metro, was also grieving the loss of Metro police officer Charleston Hartfield, who was killed while off-duty at the Route 91 concert.

Lombardo had started his own career in law enforcement with Metro in 1988. He drew from years of experience in crisis situations he had encountered while with Metro.

“I think I, like many leaders who have been pressed into an impossible chaotic situation, reacted based upon my previous experiences and training,” he explains. “Metro has been tested before, and in handling major critical incidents, we learned from those experiences. You try the best you can to use the practical knowledge that you have gained in a career, and to remember other occurrences that have made an impression on you.”

The 1 October Effect The Clark County Sheriff did take away some lessons from the tragedy of 1 October, though. Las Vegas, as the Entertainment Capital of the World, has long been mentioned as a possible terrorist target. And this past spring, a report of an armed masked man at the Boulevard Mall resulted in a massive – and immediate – police response. Fortunately, that masked suspect was found to only have a replica of an actual gun, and no one was hurt.

“I believe 1 October, like 9/11, will cause us to be more vigilant to security concerns. In public safety, it is important to think in terms of, ‘It happens tomorrow.’ The ‘It’, or the scenarios, are many—whether it’s an active assailant, a major fire, or an earthquake; the list can go on-and-on,” Lombardo says.

Just as past aviation disasters have ultimately resulted in much-safer planes, tragedies can often lead to more precautionary measures. But acts of evil by individuals are constantly morphing. Criminal minds will often turn to new ways of causing mayhem.

Lombardo says Metro is doing its best to take the lessons from the 1

Vegas Legal Magazine Summer 2018 | Pg. 41

SHERIFF LOMBARDO

“My number one goal remains the same – reducing violent crime. As a law enforcement agency, abating crime is our primary responsibility. To this point, we have to do everything we can to make out neighborhoods safe.”

–Sheriff Joe Lombardo October shooting, and its response, and use those lessons to make Las Vegas safer.

“Though we can’t anticipate every critical incident before it happens, there are many lessons we have learned that we need to apply,” the sheriff responds. “We have to do our best to incorporate those lessons into our training and our responses. We have to continue to test ourselves, striving to get better.”

Part of this effort to improve crisis-response includes a “full-scale training exercise” at local schools, Lombardo says. The training was designed to assess how Southern Nevada’s first responders would work together during a crisis, such as an active shooter.

“At (Metro), we have been a leader in pushing this type of training and readiness,” Lombardo explains.

The Making Of A Sheriff Joe Lombardo’s family moved to Las Vegas in 1976, when Joe was in his early teens. He would go on to get his bachelor’s degree from the University of Nevada, Las Vegas. (Lombardo would also later earn his master’s degree from UNLV, in 2006). But after completing his undergraduate degree from the university, Lombardo came to the conclusion that a traditional 9-to-5 job was just not for him.

“After graduating from UNLV, I took my first steps into the business world and I quickly realized that I did not want to work behind a desk all my life; I wanted something that was more exciting and adventurous,” Lombardo recalls.

After joining Metro in 1988, the young Joe Lombardo craved the excitement of being a cop on the beat, fighting crime.

“Early in my police career, I found that I loved the action, being on the streets, and the rush of adrenaline that comes with responding to crimes. I was hooked,” he reminisces now. “There was nothing more gratifying than putting handcuffs on a violent criminal, who had been preying upon the community.”

Lombardo was rising through the ranks at Metro, and gaining recognition.

He was promoted to police sergeant in 1996. During that time as

Vegas Legal Magazine Summer 2018 | Pg. 42

sergeant, Lombardo would be awarded the Meritorious Service Award for outstanding service to the Las Vegas community. A promotion to lieutenant would follow in 2001, and by 2006, Lombardo was named captain. He would serve as bureau commander for the Southwest Area Command before becoming the bureau commander for homeland security.

The rise of Joe Lombardo continued in 2008, when he was appointed deputy chief, and served as division commander of support operations.

Lombardo would climb to division commander of the patrol division, where he oversaw Special Weapons and Tactics (SWAT), among other divisions. In 2011, Lombardo was appointed assistant sheriff. Finally, in 2014, Lombardo retired from Metro after 26 years and was elected sheriff of Clark County.

This June, Lombardo bested a handful of opponents in the race for sheriff and was re-elected to a second term. The victory was by all measures, a landslide.

The Sheriff ’s Plans For Keeping Las Vegas Safe With an election campaign behind him, Clark County Sheriff Joe Lombardo can focus all his attention on what has been his main aim since he became a police officer in 1988: Keeping Las Vegas safe.

“My number one goal remains the same – reducing violent crime,” the sheriff maintains. “As a law enforcement agency, abating crime is our primary responsibility. To this point, we have to do everything we can to make out neighborhoods safe.”

Having worked in law enforcement for 30 years, Lombardo says he understands the trauma that victims of crime experience.

“Each battery, each robbery, each homicide has a story behind it, where someone was hurt or lost their life,” the sheriff explains.

A significant amount of calls to which police respond involve people suffering from mental health issues. Lombardo is trying to improve on training, so that his officers can better handle these difficult situations and get mentally ill individuals the help they need.

“My other priority this next term will be identifying and developing resources to address the increase in mental health issues as they relate to

SHERIFF LOMBARDO

law enforcement,” the sheriff reveals. “This is a huge societal problem that police have to deal with, when it’s really not a crime issue.”

Las Vegas is a city known for its big events, and for drawing millions of tourists. That means the role of a sheriff like Joe Lombardo is keeping both locals and tourists safe from harm. That job now also includes rebuilding the sense of security that so many people in Las Vegas lost after the 1 October shooting.

Lombardo pledges to balance security concerns with Las Vegas’ fun atmosphere, which visitors expect: “In my opinion, no other city is as well practiced,” he notes. “That said, there is a tremendous amount of planning, collaboration and work that goes into providing the right environment – one that is lively and enjoyable for visitors while making certain there is freedom from danger.”

Placing officers along the resort corridor, while working to reduce crime in the city’s residential areas, are among the ways Lombardo says that law enforcement is trying to ease the concerns of both locals and tourists.

“I am confident that our city is a ‘safe city’ that can be appreciated by everyone.”

---------Vegas Legal Magazine: The Las Vegas Valley has seen an increase in violent crimes, (excluding the 1 October shooting massacre). Can you talk about the measures your department is taking to combat this crime surge, such as recreating the gang crimes unit last year?

Joe Lombardo: Last year our jurisdiction saw a drop in violent crime while our total population rose. This year, we have seen significant reductions in the number of robberies, but are still seeking improvements in other areas, such as homicides and sexual assaults.

For impacting crime, I believe police officers make a difference; the presence of a uniformed cop or a black-and-white patrol car in a neighborhood deters crime, and with that said, (the Las Vegas Metropolitan Police, or LVMPD) recently attained the threshold of two officers per 1,000 residents. This is a significant achievement for us in bolstering our ranks.

Today, we are seeing the benefits from the decentralization of detectives that were pushed out to the area commands. These two developments have put more officers in neighborhoods, preventing crime before it happens, and at the other end, following up on investigations. Adding a centralized gang unit has allowed us to concentrate our efforts and resources on the most problematic gangs — the ones committing the most crimes and violence. As a result, we have had success in taking down the hierarchy found in these criminal rings.

VLM: Prior to the Nevada Supreme Court ruling to begin releasing records and body camera footage from the 1 October mass shooting, Metro was criticized by many media outlets for not releasing all the 1

October mass-shooting related records. Can you explain the reasoning for your stance against releasing all that information at the current time?

JL: First, I do not believe it appropriate to release information when an investigation is not closed. Second, I believed that many of the records, such as the video footage, would negatively impact victims and officers.

There is an emotional shock found in watching the footage and reading the reports about 1 October, and for the many people involved, it has been very difficult to move on from the event.

In addition, there have been substantial logistical hurdles to complying with the ruling. The volume of information is staggering, and it has required reassigning employees to sift through the thousands of hours of video and hundreds of reports. The costs in preparing and handing over the records is significant; approximately 20 employees have been pulled from their day-to-day duties to work on the records request. This impacts our operations.

VLM: Can you discuss the ways in which Metro is working with federal immigration officials?

JL: We participate in the jail-based 287 (g) program, where we have crossdeputized a select group of detention officers to help strengthen public safety by prioritizing the arrest and detention of criminal immigrants. We do not participate in immigration enforcement in the field.

VLM: Going forward, after Las Vegas experienced the deadliest mass in shooting in modern U.S. history last October, how would you reassure both local residents and tourists that Las Vegas is still a “safe city”?

JL: Las Vegas is renowned as the “Entertainment Capital of the World.”

Throughout our history, we have hosted thousands of mega-events where we have successfully managed safety and security concerns. In my opinion, no other city is as well-practiced. That said, there is a tremendous amount of planning, collaboration and work that goes into providing the right environment—one that is lively and enjoyable for visitors while making certain there is freedom from danger.

To this end, LVMPD continues to partner with private businesses; federal, state, and local law enforcement; elected officials; and other public agencies to ensure that we are maintaining a vigilance against all threats.

Concurrently, we have been successful in placing more officers along the resort corridor and yet still, in our neighborhoods. They are making a difference. Despite recent trends experienced by other major cities, violent crime in our jurisdiction is moving in the right direction—it has fallen. In closing, I want our community to know that your department is committed to the motto of “to protect and to serve.” I am confident that our city is a “safe city” that can be appreciated by everyone.

Valerie Miller is a Las Vegas Valley-based journalist. She can be reached at (702) 683-3986 or valeriemusicmagic@yahoo.com.

Vegas Legal Magazine Summer 2018 | Pg. 43

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STATE

Of The

MARKET

The International Trade War Is Really A

TRADE DISPUTE WAR U

– By Mark Martiak

.S. stocks surged to begin the last week of May, powered higher by shares of industrials companies, as concerns about a trade war between the U.S. and China eased. On Monday, May 21, 2018, The Dow Jones Industrial Average jumped 363 points, or 1.5%, to 25,077, topping 25,000 for the first time since March 16th. The S&P 500 and Nasdaq Composite both advanced 0.9% (1) Money managers said discussions between the U.S. and China over the weekend of May 18th-20th have helped avoid a trade war. In an interview on May 21, Treasury Secretary Steven Mnuchin said the U.S. will suspend the $150 billion that it had previously threatened to levy on Chinese imports. Secretary Mnuchin indicated the trade war was a trade dispute - sounding as if the Trump Administration would tone down the rhetoric.

Shares of industrials companies were the biggest winners in the S&P 500, adding 1.9%. These companies tend to be exposed to foreign sales, making them a beneficiary of cooling rhetoric on trade. Boeing, which has been sensitive to investor sentiment on trade, was the biggest gainer in the Dow, rising 3.7%.

The U.S. is set to complete the procedural steps to apply tariffs on $50 billion of Chinese imports sometime before June 12th and has threatened to apply levies to a further $100 billion. While China had pledged to retaliate, it has now agreed to purchase a larger amount of American goods to help close the U.S. trade deficit.

While the global economy remains robust and first-quarter earnings have been strong, stock markets have mostly traded sideways this year because many investors have started to fear that the pace of the expansion has already peaked.

The Russell 2000 is trading at new all-time highs and this bodes well for mostly U.S. small capitalization stocks given the stronger U.S. dollar. Oil prices are higher after lagging for most of this historic bull market cycle. With this in mind, stocks overseas may be dragged down by the stronger dollar, higher Treasury yields and weakening economic indicators in Europe.

The dollar reigns supreme in global finance. It accounts for a dominant share of international financial transactions and is the ultimate haven currency. But the US currency’s supremacy cannot be taken for granted. President Donald Trump may be sowing the seeds of its demise. Professor Eswar Prasad at Cornell University and a senior fellow at Brookings suggested in a recent Financial Times Opinion article that the falling cost of transacting in other currencies and the rise of emerging market currencies such as China’s renminbi are already reducing the dollar’s role in denominating and settling cross-border transactions. Professor Prasad goes on to say that China and South Korea are conducting trade using their own currencies rather than relying on the dollar as a “vehicle currency”. The logic he suggests for denominating in dollars virtually all oil and commodity contracts are waning (2).

If the dollar weakens and even wanes as the dominant medium of exchange, it will remain a trust haven. Foreign investors and central banks have shown no signs of forsaking their dollar assets.

U.S. institutions have staying power, however taking them for granted could prove detrimental. When the American political system has come under stress in the past, our free press, backed by an independent judicial branch, has functioned as a correcting mechanism. Since President Trump has come to power, all these institutions are under attack from Trump abetted by a GOP Congress. Mid-term elections may alter the rhetoric however much of it isn’t waning any time soon.

As Professor Prasad noted, the dollar’s supremacy depends on the durability and strength of its institutions. And, it is precisely these institutions that the Trump administration is eroding (2).

On the first Monday in May, I was asked by MarketWatch about President Trump’s position on the Iran nuclear deal and what it meant for the market rally that day and my response was that we were waiting on more clarity about the Iran deal. If Trump pulls out, which other leaders have urged him not to do, then the oil supply will be cut, which will have the same impact as rising demand in terms of driving up prices. But even beyond that, I highlighted that we were entering the summer driving season which would drive demand and the energy sector has been down for so long that it looked poised for a rebound. And it has. Trump indicated that the Iran nuclear deal was off with Iran the very next day on May 8th.

Beyond that, I was quoted as saying that there were no obvious market catalysts on the horizon, which leaves more room for geopolitical risk to impact trading (3).

In the near term, the stock market’s momentum along with oil’s rise will hinge on trade agreements and the rise and fall of the dollar’s strength against other currencies. I expect we’ll see a lot more stock market volatility going forward.

For investors, the best approach remains steady as she goes. On-again, off-again Sino-U.S. trade “wars” are really trade disputes and have begun to increasingly look like a semi-permanent part of the investment environment. My view is to avoid the market noise here and overseas and stay disciplined and patient with your investment holdings while remaining cautiously optimistic about the stock market performance this summer. In other words, watch what the Trump Administration does and not what they say.

Mark Martiak is a New York based Investment Advisor Representative for Premier Wealth Advisors LLC. Mark is a regular Contributor for VEGAS LEGAL MAGAZINE who has appeared on CNBC’s CLOSING BELL, YAHOO! FINANCE MIDDAY MARKET MOVERS, FOX BUSINESS NETWORK and has been quoted in THE WALL STREET JOURNAL. Securities offered through: First Allied Securities, Inc. A Registered Broker/Dealer. Member: FINRA /SIPC. Advisory Services offered through: Premier Wealth Advisors, LLC. (PWA) & First Allied Advisory Services, Inc. (FAAS). Both Registered Investment Advisers. PWA is not affiliated with First Allied Securities, Inc or FAAS.

References 1. The Wall Street Journal on May 21, 2018: U.S. Stocks Jump as Fears of Trade War Ebb 2. Financial Times on May 20th, 2018: America beware: dollar supremacy is not forever.

3. MarketWatch on May 7th, 2018: Stocks end higher, but cuts gain after Trump says Iran decision imminent.

Such forward-looking statements are subject to significant business, economic and competitive uncertainties and actual results could be materially different. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time and are the opinion of the individual strategist. Data is taken from sources generally believed to be reliable, but no guarantee is given to its accuracy. Indexes are unmanaged, and investors are not able to invest directly into any index. Past performance is no guarantee of future results.

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The Supreme Court Bets YES On SPORTS BETTING –By Jeff Haney

Talk about a great opening line.

In the majority opinion for the Supreme Court in Murphy v. NCAA, which effectively paved the way for legalized sports betting nationwide, Justice Samuel Alito crafted an initial salvo that was downright elegant in its simplicity, writing: “Americans have never been of one mind about gambling, and attitudes have swung back and forth.”

Certainly, our society’s perspective on games of chance comes across as inconsistent at best. For decades in many jurisdictions, betting on horse racing or blowing your money on the lottery has been deemed perfectly acceptable. But pai gow poker? Caveman Keno? Until relatively recently in large swaths of the nation, not so much.

The May 14 high court decision, however, which struck down a 1992 federal law known as the Professional and Amateur Sports Protection Act, underscores a profound shift in public sentiment toward one particular form of gambling — full-fledged, Las Vegas-style sports betting — in just the past quarter-century.

In the lead-up to PASPA, which essentially banned states from authorizing sports betting, then-NFL commissioner Paul Tagliabue made his distaste clear in testimony before Congress, saying: “Sports gambling threatens the character of team sports. … The spread of legalized sports gambling would change forever, and for the worse, what our games stand for and the way they are perceived.”

And Bill Bradley, the former basketball star and Democratic U.S. Senator from New Jersey who championed PASPA, memorably said in 1991: “I know that when I was a player, I certainly didn’t like the idea of being a roulette chip.”

Fast forward to 2018 and the Supreme Court’s 6-3 decision in Murphy, and the contrast could not be starker. If anything, the major sports leagues are now looking for a piece of the action, using terms like “integrity fee,” “royalty,” and other euphemistic words for “shakedown” as at least 20 states scrambled to implement sports betting legislation in the wake of the ruling.

For example, an Indiana state bill on sports betting included a proposed fee to the NBA and Major League Baseball amounting to 1 percent of handle, or total wagers. Betting industry executives cried foul, pointing out that because sports books typically keep, or “hold,” only about 5 percent of handle after paying out winning bets, a 1 percent fee would equate to a whopping 20 percent of gross revenue. In New Jersey, state Senate president Steve Sweeney characterized such fees as “extortion.” A bill in the New York legislature floated a potential 0.25 percent fee for the leagues capped at 2 percent of revenue, which could prove more palatable.

With a massive, heretofore untapped and largely underground U.S. sports betting market that could exceed $150 billion annually, according to American Gaming Association estimates, the stakes are high. Even without collecting any fees directly tied to sports betting revenue, though, the leagues stand to benefit. A 2016 Nielsen Sports poll, for instance, found that NFL bettors watch 19 more games each year — more than an entire regular season’s worth — than non-gambling fans. The survey revealed that 77 percent of respondents said placing a bet enhanced their enjoyment of a game (if anything, seems a little low!), and 84 percent were more likely to watch a game if they made a bet on it. Cognizant of how gambling galvanizes fan interest, Dallas Mavericks owner Mark Cuban said he expects the value of pro sports franchises to “double at least” after the Supreme Court ruling.

The effect on Nevada, the one state where full-scale sports betting has been legal all along, figures to be neutral to positive rather than detrimental.

For one thing, sports betting revenue in the state (about $250 million last year) represents a paltry 2.2 percent of total gaming revenue ($11.1 billion). Sure, there’s a relatively tiny universe of tourists who visit Las Vegas specifically to place sports bets who may opt to stay home from now on. They’ll likely be replaced, with room to spare, by new customers who will have learned the rudiments of sports betting in the friendly confines of their own state, who will be able to easily decipher the once-inscrutable hieroglyphs of the big betting board, who will feel comfortable in the sports book as Americans’ capricious attitudes toward sports gambling crystallize into something like a warm embrace.

Jeff Haney is the vice president of Fierro Communications, Inc.

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1099-MISC ARE YOU TAX COMPLIANT? – By Donovan Thiessen, CPA

The IRS has increased efforts in recent years to close the estimated

$300 billion tax gap (amount taxpayers owed versus the amount received). One of the most popular ways is through its Automated Underreporter program. Information returns such as W-2s and 1099s filed by third parties (employers, banks and brokers) are being matched to income reported by taxpayers on their income tax returns.

If a discrepancy exists, the Service issues a Notice letter and requires the taxpayer to prove their position. Many small business owners are unaware of the 1099 filing requirements and the increased penalties for noncompliance. By the end of this article you will learn how to better navigate this part of your business and avoid noncompliance.

In 2011 two seemingly innocent questions appeared on income tax returns for individuals, trusts, partnerships and corporations: 1. Did your business make any payments that would require filing form(s) 1099; and 2. If yes, did your business file or will it file form(s) 1099?

These questions and answers serve as a taxpayer’s attestation, under penalties of perjury, that they are aware of the filing requirements. It is critical that this question is answered correctly.

Generally, if you make aggregate payments of at least $600 in the course of your trade or business to a non-employee, you may need to file a 1099-MISC to this person or business. A few examples that would likely trigger a 1099 to be issued: rent expenses, temporary office assistance, payments to attorneys, payments for services performed by

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IT, landscaping, repairman, consultants, bookkeepers (the list is more detailed in the 1099 instructions).

In order to issue a 1099-MISC, each business must obtain the Taxpayer Identification Number (TIN or EIN employer identification number) from their service providers. Generally, this is done by sending Form W-9 to the individual or business. The information on the W-9 will determine if a 1099 should be issued to the vendor. If the vendor fails to remit their W-9, the payor is generally required to send backup withholding to the IRS for 28% of the payment. Failure to withhold and remit backup withholding in this case can carry a penalty of 28% - equal to the amount that should have been withheld. For these reasons it is prudent to obtain a completed W-9 before you send the first payment to a new vendor.

The penalties for filing late (for small businesses) can be as high as $260 per return, up to a max fine of $1,072,500. The “intentional disregard” penalty can be as high as $530 per return with no maximum limitation.

For instance, if you were four months late filing twelve 1099s, you could be liable for a $1,200 penalty ($100 per return in this example).

The filing due date is January 31, 2019, for payments made during the 2018 tax year. Taxpayers can typically prepare 1099s in their accounting software (Quickbooks, Xero, Wave) or they can hire an accountant or payroll company to prepare and file these returns.

Best Practices When you are ready to issue a check to a vendor, you should already

have their completed W-9. Check your accounting software to identify this vendor as a potential 1099 recipient. File the W-9 in a permanent file as you would with other important tax documents. In December, you should run a report for possible 1099s to be issued. Generally, this report is populated with the vendors you’ve tagged as 1099 recipients.

There may be additional report details such as which types of expense accounts cause payments to be flagged as possibly needing a 1099. At this point you should review if you are missing any W-9s (you shouldn’t because your new policy says not to issue a check without a W-9!).

The 1099 Instructions includes a paragraph regarding Form 1099-K. It says: “Payments made with a credit card or payment card and certain other types of payments including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate instructions for Form 1099-K.” This means that if possible, you should pay vendors with a business credit card. The report for possible 1099 recipients (referred to as the 1099 Wizard in Quickbooks) that I referenced earlier will also include a column that segregates payments made with a credit card and excludes them from amounts to be included on the 1099. You would greatly improve the efficiency of this process if you adjust your payment policy to favor business credit cards. The theory: if you pay a vendor with a credit card, then he must have a merchant services account set so he can receive these payments. On the vendor’s side, the merchant service account sends him an annual aggregate receipts report. For income tax purposes, the vendor must report at least his aggregate receipt total for his gross business income, or it could result

in a mismatch with the Automated Underreporter program. Therefore, a matching mechanism is in place for payments made and received with a business credit card and does not need to be included with the 1099-MISC filing.

Generally, payments made to a corporation are exempt and do not have to be reported on Form 1099-MISC. You can identify the payee type on their completed W-9. There is an exception to this exception however. Payments to corporations for legal services must be reported on a 1099.

Filing 1099s, and their related best practices is often overlooked or dealt with hastily at the deadline. You can avoid costs related to noncompliance by installing or reviewing your internal controls.

Additionally, be sure to collect the 1099-MISC forms you receive as a business owner and make sure they agree to the gross income in your books. Disregarding the law can be costly not just for penalties but for additional tax and legal representation. If you are in need of reviewing your system for 2018, you only need to look back 6 months to review your payment activity. That is your starting point.

Please note: the IRS 1099 instructions provide additional reporting details that are impractical to cover in this article. The information presented here is general in nature, if you have a question about your tax situation please refer to the IRS 1099 instructions and contact a tax advisor.

Donovan Thiessen, CPA has worked for Gerety & Associates, CPAs in Las Vegas, Nevada for 10 years, focusing on trust and estate, and individual and business income taxation. The firm has substantial experience in estate planning and can handle complex transactions. You may reach Donovan at dthiessen@geretycpa.com and 702.933.2213.

Vegas Legal Magazine Summer 2018 | Pg. 59

Study Links Good

FINANCIAL HABITS To

ACHIEVING HAPPINESS –By Andrew Schneider Financial Advisor, Morgan Stanley

From record-breaking stock market returns to falling unemployment,

the U.S. has no shortage of positive economic indicators, and the majority of investors say they feel confident about achieving both their shortand long-term goals, according to the latest “Morgan Stanley Investor Pulse Poll,” which surveyed more than 1,200 investors age 25 to 75 with over $100,000 in assets. About one in four (29%)—or 36 million—U.S. households fall into this category.

Mostly Sunny, With Some Clouds Investors are upbeat overall, with about 9 in 10 either “somewhat” or “very” happy with their financial situation today. Also, nearly 9 in 10 expect their portfolios to stay strong or improve in the coming year. Most (91%) believe they’re solidly on track to realize long-term goals like: • • • •

Saving for retirement Paying off a mortgage Transferring their wealth to the next generation Paying for a child’s or grandchild’s education

Nearly all (93%) are confident they’ll achieve short-term goals like paying for travel, home and car expenditures.

Still, the investors polled aren’t entirely carefree. More than two-thirds (67%) fear running out of money in their lifetime and 56% are uneasy about being able to maintain their standard of living. Having enough money to

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manage retirement and unexpected medical costs are key concerns shared by more than half (56% and 52% respectively) of investors, and two-thirds (69%) are concerned about how the political climate will affect their finances.

Even Millennials polled say they are worried about retirement, with 72% of them concerned about having adequate funds, while 69% are uneasy about making that money last a lifetime.

Of investors ages 45 and above, about 9 in 10 say they wished they had started saving for their goals earlier, with nearly half highlighting retirement in particular.

What can explain this apparent paradox between investor optimism and concern? In a nutshell: a lack of planning. Many investors admit they need help with finances, but fail to seek it.

The Advantage of Planning with a Financial Advisor Roughly half of all investors working with a professional are looking for help with a written plan that includes budgeting, expenditures, and investments. Still, only one in three investors has a professionally prepared financial plan. Many apply a do-it-yourself approach (27%) or have no plan at all (36%).

Of the 36% of investors who do opt for a professionally prepared, goaldriven plan, 80% credit their financial advisors with their financial success.

Happier Investors Practice Good Financial Habits Investors surveyed who reported being happiest overall also say they are less troubled by financial worries than their peers. They’re less concerned about issues like having enough money for retirement or unexpected medical expenses.

What’s their secret? They practice healthy financial habits like having a financial plan in place, meeting short-term and long-term goals, and discussing finances with their significant other.

Working with a trusted professional familiar with your financial situation to develop a personalized plan driven by your goals can help build financial confidence in good times and bad. When those plans are combined with good financial habits, investors can move toward goals including buying a home, retirement, travel or paying for education. Talk with an advisor to build your plans today.

This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Sources/Disclaimer Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

If you’d like to learn more, Please contact Andrew Schneider: 702-792-2060;https:// morganstanleyfa.com/Andrew.schneider By providing this third-party publication, we are not implying an affiliation, sponsorship, endorsement, approval, investigation, verification or monitoring by Morgan Stanley of any information contained in the publication. Andrew Schneider may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, [https://www.morganstanleyfa. com/andrew.schneider].

This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan Stanley Wealth Management recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Morgan Stanley offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Financial Advisor to understand these differences. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters. © 2018 Morgan Stanley Smith Barney LLC. Member SIPC. CRC2021936 03/18

Vegas Legal Magazine Summer 2018 | Pg. 61

How To Create

WEALTH FROM TAX PLANNING An Economic Perspective From a CPA/Economist –By Drake Williams, Ph. D., CPA

Many people, including business owners, admit to uneasy relationships

with the Internal Revenue Service and its daunting system of taxation.

And, moreover, fully admit to difficulties in understanding the role that taxes can play in creating wealth because they do not fully comprehend the importance of tax incentives.

As a result, many choose an accountant to calculate their taxes in accordance with the tax code, at least as they understand it, in hopes of minimal interference in their businesses from the IRS. For this group, the end-of-the-year tax duty begins with the annual trek to a tax preparer, whose typical input may include use of different write-offs or other yearend deterrents to lower the amount of taxes due.

However, these year-end marginal number crunching exercises are defensive in nature because they deal with what has already transpired in the life of a business, effectively shutting the gate after the horses have escaped. This practice is not meant to help a business owner achieve the life goals that he or she has set. In fact, these devices may divert energy and attention away from long-term planning for wealth creation. For that, we must turn to the available tax incentives, which requires setting one’s sights on the future.

The “wealth approach” to tax planning, in contrast, is more like a longterm economics project. For this path, we identify those tax provisions that best serve our financial goals and well-being. Then we implement them to create an economic chain of events that compounds wealth, tax free.

The Path Forward Consider the hypothetical case of 50-year-old attorney Evie Arditti. She’s raising two children as a single parent, works hard and has a burgeoning practice. Within ten years, she imagines a secure, independent retirement with an oceanfront view.

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Yet like so many of us, she faces serious impediments to her wellearned dream. She worries about funding her retirement account, about paying for escalating healthcare costs as she ages, and about her ability to contribute to her teen-aged children’s education fund. For the last few years, Ms. Arditti has paid an average $36,000 in federal taxes annually, and wonders if the money could have been better spent to support her personal objectives.

Retirement Realities There are a variety of tax-qualified retirement plans that allow participants to set up a personal account to which tax-free contributions may be made to finance life after employment.

A popular type is the 401 (k) “contribution” plan. But the tax deductions and maximum possible savings in such plans are limited in several ways.

The Maximum Annual “Addition” (the largest tax-deductible deposit to an individual’s account) is $54,000 each year, but no more than 100% of that individual’s compensation.

While a reliable vehicle to economic security in the golden years, the Maximum Annual Addition rules mean Ms. Arditti can only build up about half a million dollars of contributions, plus earnings, in her account.

And the maximum “deduction” Ms. Arditti can take for contributions is 25% of her compensation. So, she must receive compensation of $216,000 to allow her to contribute $54,000. It is a severe restriction to Ms. Arditti’s ability to retire within her desired time frame.

To allow for a much larger contribution, a Defined Benefit Plan provides a pension – a monthly benefit payment for the life of the participant commencing at the Normal Retirement Age (NRA) defined in the plan, which could increase Ms. Arditti’s retirement advantage to a maximum of $215,000 annually -- or to a lump sum equivalent benefit of $2.6 million.

Compared to the 401(K) limitations, you can see the advantage.

Medical Concerns Nothing gives rise to fears of aging like the specter of unforeseen healthcare costs. A Health Savings Account, or HSA, is an avenue to mitigate these concerns. Not only does it help pay for medical costs not covered by insurance, it provides a triple tax advantage: • HSA owners get a tax break on the money they contribute to the account; • The contents of the account are exempt from taxes; and • Money taken out to pay qualified medical expenses is not taxed.

In our hypothetical case, the IRS limits the amount that Ms. Arditti’s can contribute for family coverage to $6,900 per year.

Tuition Concerns

Next Ms. Arditti intends to transfer 10-annual payments of $6,900 from her taxable savings account into a non-taxable HSA account to meet the spectra of unforeseen healthcare costs.

And finally, to address the daunting costs of higher education, Ms. Arditti contributes todady $100,000 to an IRS 529 educational plan.

Let’s review: Ms. Arditti choose to contribute $80,000 annually to her Pension plan; $6,900 annually to her Health care plan; and made a onetime deposit of $100,000 to her Tuition plan. After 10 years, these plans accumulated $1.830 million, or $327,000 more in a tax-free account than in a taxable account. From age of 50 through 85, after paying out $3.125 in retirement benefits and $178,000 in health care and tuition costs, the tax incentives provided $1.76 million dollars more than a taxable account.

To address the daunting costs of higher education, Ms. Arditti is considering an IRS 529 savings account to defray tuition, books and other education-related expenses. Although contributions to this account are not tax deductible, the earnings grow tax-free, and they would not be taxed when the funds are taken out.

Under the 529 plan, Ms. Arditti could contribute up to $75,000 per year, per child, without being subject to the federal gift tax. Family members and friends could make gifts to her plan as well.

The Wealth Creation Model Within the framework of economic theory, these plans create an exponential wealth effect based on the time value of money, and tax-free compounding.

Let’s assume Ms. Arditti is in the 32% tax bracket, and to avoid the 401(K) limitations, adopts a defined “benefit” plan to retire within her desired time frame. Given investment opportunities, she thinks she can earn 10% per annum tax-free (a tax-equivalent yield of 14.706%).

The primary focus of the economic model is the yellow line – the amount building up tax free to apply towards retirement, health care, and education costs. The secondary focus is how it trends commensurate with her life span (35 years).

Also, Ms. Arditti can contribute up to $80,000 per year to her retirement plan for ten years. If she does, the “tax savings” alone will accumulate $242,395. And the higher her marginal tax bracket (state and federal), the higher the tax-equivalent yield and wealth effect.

After retirement at age 60, Ms. Arditti anticipates living 25 more years (of course, she’s going to live longer, and I wish her good health), and plans to withdraw $125,000 annually from her retirement account. Of course, the draw-down balances will continue to earn 10 percent.

So, how much should Ms. Arditti “actually” deposit annually to retire with $125,000 per year for the next 25-years (leaving a goose egg for heirs)?

Answer: 10 annual contributions of $61,228.

Wait! How can 10 annual payments of $61,228 deliver 25 annual payments of $125,000? It’s called the power of compounding interest. Over her lifetime compounding interest will add $2.45 million tax-free to her retirement account for a total of $3.125 million after adding in her annual contributions.

Of course, a tax payer’s gross earnings are the major driver. But regardless of one’s tax bracket, the theory is the same: develop and support the taxpayer in a business and family context and expand and improve the taxpayer’s wealth and quality of life instead of simply relying on yearend number crunching exercises.

Drake Williams is a practicing CPA with a Ph.D. from the London School of Economics.

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TAKE ADVANTAGE OF TECH: These Apps Are Must Have For The Business Savvy –By Tom Joseph

Whether you manage a business or just a generally hectic

lifestyle, time seems to always run short and staying productive becomes a daily battle. Thankfully, the surge of App development has brought us some great Apps for helping you stay organized, focus and on track with tasks and goals. Take a look at these Apps and let technology ease some of the daily burden on your shoulders.

Manage Projects With Basecamp: Basecamp is a well-known project management app that allows multiple users to collaborate in completing projects. You can create multiple projects with individual project files and assign tasks to various users all while keeping communication logged and organized in one place. Think board room meetings and presentations all while not having to actually attend the in-person board room presentation– just a glimpse at your phone will suffice.

Basecamp keeps everyone updated and on point, so a project can reach its goal without having to constantly face each person to keep up on project status.

Stay Organized With Evernote: Do you hate writing down your grocery list or having to set alarm clock reminders for errands you need to get done in a day? Well the end has come, and Evernote is your solution. Evernote allows you to keep track of lists, tasks, notes, journals and emails all in one place. You can even share your Evernote files so the next time your assistant asks you for the storage unit code you can point to your shared work list.

Track Expenses With Expensify: Keeping track of expenses can be an arduous task. With Expensify you can snap a picture of a receipt with your phone and the application will scan it and catalog it into your account. Even more, this app allows for integration with multiple users, so you can submit expenses directly to management for instant approval.

No more are the days of spending hours calculating your expense reports by hand– just snap a picture of your receipts along the way and submit them instantly.

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Great Cuisine Is Found At Great Heights:

TOP OF THE WORLD –By Tyler Morgan

There may not be a more stunning view of the city than 800 feet above the

Las Vegas strip. The lights of the strip and the sunsets over the mountains are some of the most beautiful sights of the city and Top of The World is a fine dining restaurant that knows how to make the most of the views– stunning 360-degree views.

Top of The World is a restaurant of old with new energy put into it via a complete culinary revamping under the guidance of new Golden Entertainment Corporate Executive Chef (and award winning might I add) Johnny Church. You may recognize him from another local hotspot, Aureole inside Mandalay Bay. Church served as Executive Chef of Aureole until undertaking the position of Corporate Executive Chef. Oh, and if you are a Food Network foodie, you’re probably already aware of his victory on a recent episode of Chopped– he won the million dollar meals challenge before judge Martha Stewart.

Golden Entertainment has recently acquired the Stratosphere property and Church’s first item of business is a complete culinary overhaul beginning with Top of The World. A new menu brings new reasons to return and

if you’ve never experienced the restaurant of old, you’re in for not only a breathtaking view of the city, but also a seductive setting for beautifully presented fine steaks and seafood. And don’t forget to add this restaurant to your lunch meeting repertoire. Nothing impresses clients more than a surf n turf lunch and Top of The World has you covered with a new prix-fix three-course lunch special inclusive of a petite filet with choice of lobster tail or shrimp scampi ($49).

The Stratosphere has a bright future with Golden Entertainment and if the new culinary line up is any indication of what the future will bring, this is one property to keep a close eye on, and an appetite closely following.

Top Of The World 2000 S. Las Vegas Blvd.

Las Vegas, NV 89104 Phone: (702) 380-7777 www.topoftheworldlv.com

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The Smith Center Thanks You –By Myron Martin

It is hard to believe that more than six years have passed since the opening

of The Smith Center on March 10, 2012. A project that some would say started against the odds has become embraced by the community and recognized around the world. Pollstar magazine not only placed the center in their top 200 theaters in the world, but in their top ten – in the world. People perceive Las Vegas differently because of it, and I think that employers are finding it easier to attract talented managers to move here thanks to the cultural infrastructure now in place. Downtown Las Vegas development is changing as a result, and businesses across the valley are even scheduling workers around the schedule of events at The Smith Center. The best part is that this amazing place, this architectural marvel, is ours. It was built for those of us who live here, for our children and for future generations of Las Vegas locals.

Education is in our DNA. Since opening, The Smith Center has welcomed hundreds of thousands of students for performances, workshops, masterclasses, and special programs. We created the Nevada High School Musical Theater Awards, which sends two local students to New York City for a week to work with the best Broadway directors, choreographers, and actors, and they get the opportunity to perform on a Broadway stage and compete for the Jimmy Awards! Camp Broadway introduces the joy of singing and dancing to local students each summer with groups of children ages 6-9 as well as 10-17 years old. Other education programs focus on literacy, STEAM, and finding new opportunities for families with members with sensory-sensitivities or other intellectual or developmental disabilities.

One of our proudest accomplishments, in my opinion, has been the creation of the Heart of Education Awards. This program, allows us to point our spotlights on CCSD teachers, who may otherwise go unnoticed.

This year, thousands of community members nominated teachers from throughout the valley, from every grade level, and in every discipline for this recognition. Their nominations come to us while simultaneously going to the teachers. In this way, these electronic “love letters” greet the teachers.

Imagine being a teacher who is focused on their students, one who is not looking for recognition, and receives a note from a former student, parent, PTA member, fellow teacher, or other community leader. The impact is

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real, positive, and encouraging. While they may think they are living in the shadows, they now realize that what they do makes a real difference. As a result, teachers who go above and beyond for their students are now being featured in the media and thanked by the community. Each year twenty of these amazing educators are awarded a cash gift and presented the Heart of Education medallion. Based on the feedback I have received, this program is not only changing general perception about public education (we have great teachers living right here in Las Vegas!), but also encouraging our best teachers to keep up the good work.

Although ticket sales only cover 75% of our total costs, we are committed to keeping programs like this going. Thanks to a supportive community, the future looks amazing! Thank you for helping make these communitybuilding educational programs possible.

As president and CEO of The Smith Center for the Performing Arts, Myron Martin brings the world’s most revered and celebrated entertainers to Las Vegas. Martin has a rich history in the performing arts business. A proud Las Vegas resident, Martin has received many accolades, including being named among the Vegas Dozen, Las Vegas’ Man of the Year by Vegas Seven, and receiving the key to the city from Las Vegas Mayor Carolyn Goodman. The Nevada Broadcasting Association presented him the Community Achievement Award and The Public Education Foundation called him their Champion for Children. He is an Emmy Award nominee for producing the Vegas PBS special “Frank Wildhorn & Friends” and is a voter for the Tony Awards.

THE HEART OF THE ARTS. ®

In the heart of our city, there’s a place that’s celebrated around the world.

It’s our city’s heart of beauty and creativity.

It’s the heart of learning and inspiration.

The heart of magic.

And it was built just for you.

Experience it and let your life be changed in brilliant new ways.

TheSmithCenter.com 361 Symphony Park Avenue, Las Vegas, NV 89106 | 702.749.2000 | TTY: 800.326.6868 or dial 711

UNDERSTANDING THE

Benefits Of Fiber IN YOUR DIET –By Michelle Hyla, D.O.

Everyone knows they are supposed to eat fiber. The problem is the vast

majority of Americans don’t know how much of it they should consume or what foods are good sources of fiber. Dietary fiber is a carbohydrate found in plants and comes in two forms: soluble and insoluble.

Unlike other forms of carbohydrates, which are broken down into sugar molecules, your body cannot break down fiber. Instead, fiber is passed through the body undigested.

Soluble fiber is a form of fiber dissolvable in water. When soluble fiber attracts water in your body it forms a gel-type substance, which slows down digestion. By slowing down your body’s digestion you feel full and are likely to eat less. This is one of the weight management benefits of eating soluble fiber. Additionally, soluble fiber helps regulate your body’s blood sugar levels and also helps lower LDL cholesterol by interfering with your body’s ability to absorb it. Good sources of soluble fiber include oatmeal, blueberries, strawberries, lentils and oat bran.

Insoluble fiber does not dissolve in water and is known for its laxative effect on the body when consumed. Insoluble fiber adds bulk to your diet and helps prevent constipation as it pushes through your digestive tract.

Good sources of insoluble fiber include brown rice, whole wheat, broccoli, grapes, nuts and dark leafy vegetables.

The recommended intake of fiber varies per individual, but a healthy range for everyone is between 25 and 30 grams a day. For individuals who require higher calorie needs, such as athletes, upwards of 30 grams a day are recommended. Unless you are targeting certain health benefits such as lowering cholesterol, you don’t need to concern yourself with the type of fiber consumed. Instead, just focus on consuming an adequate amount of total fiber each day by consuming vegetables, nuts, fruits and whole grains.

Ways to increase your fiber intake: 1. Snack on raw vegetables.

2. Start your day with a bowl of oatmeal or other high- fiber cereal.

3. Eat whole fruits instead of consuming fruit juices.

4. Replace white breads and pastas with a whole-wheat version.

5. Pay attention to nutritional labels. Foods will list the amount of fiber in each serving so try and select foods with high fiber content on the labels.

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FIGHT BACK PAIN WITH

Aerobic Exercise –By Andrew Cash, M.D.

Along with specific back exercises recommended by your physical

therapist, chiropractor or personal trainer, engaging aerobic exercise that increases the heart rate for a sustained period is very beneficial for helping back problems.

Aerobic exercise increases the flow of blood and nutrients which supports healing and may decrease the stiffness in the back and joints that lead to back pain. While some patients with back pain are able to participate in vigorous exercise like running or step aerobics, others find it easier to engage in low-impact exercise, for example walking, which does not jar the spine.

condition common in those with back pain or a back injury.

Types Of Exercise There are several types of aerobic exercise that are gentle on the back and, when done on a regular basis, can be highly effective in providing conditioning.

Walking: In general, walking for exercise is very gentle on the back, and walking two to three miles three times per week is very helpful for patients.

Benefits Of Exercise

Stationary bicycling: For those patients who are more comfortable seated rather than standing, biking or stationary biking may be preferable.

Reconditioning through aerobic exercise can be useful for both rehabilitation and maintenance of the lower back. Patients who regularly undertake aerobic exercise to condition the back might benefit in several ways:

Elliptical trainer or step machine: These machines provide a low-impact workout because the pedal is suspended above the ground to move in a continuous oval motion, as opposed to continuously stepping on a hard surface.

- They might have fewer episodes of low back pain and will experience less pain when an episode occurs.

Water therapy: Doing exercise in the water provides for effective conditioning while minimizing stress on the back because the buoyancy of water counteracts the gravitational pull that can compress the spine.

- They might stay more functional (e.g. continue working and carry on with recreational activities); those patients with chronic low back pain who do not engage in aerobic exercise might experience the gradual loss of functional capabilities.

- An increased production of endorphins after 30 or 40 minutes of exercise can combat pain. These bio-chemicals are the body’s natural painkiller, and frequent release of them can help patients reduce their reliance on pain medication.

- Endorphins can elevate mood and relieve symptoms of depression, a

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When your back is hurting, don’t wait for the pain to go away on its own.

Make an appointment with Dr Andrew Cash at the Desert Institute of Spine Care (DISC). Dr. Cash can examine your back, diagnose the source of your pain, and get you on the road to feeling your best again.

Andrew M Cash, MD is a board-certified and fellowship-trained orthopedic spine surgeon who began practice in Las Vegas in 2006. Dr. Cash is the founder and director of the Desert Institute of Spine Care and the Minimally Invasive Center of Excellence (MICOE). He studied under Dr. Robert Watkins, a world-renowned spine surgeon who operated on countless professional, collegiate and Olympic athletes. Prior to his Spine Fellowship, Dr. Cash completed a five-year orthopedic surgery residency at the Atlanta Medical Center and received his medical degree from the prestigious University of North Carolina at Chapel Hill

Las Vegas Icons

Frank Schreck – By Mark Fierro

If you’re a top gaming executive and you have an issue that’s going before the Nevada Gaming Control Board and it’s big — real big — there’s one call you make, and that’s to Frank Schreck.

How did your illustrious career in law begin?

How did you start?

Frank Schreck: I was born in Henderson and I went to Basic High School, graduating in 1961.

One person who became a great influence on my career was my history and government teacher in high school, Mike O’Callaghan, who later, of course, served as governor from 1971 to 1979.

I wanted to go to USC to play basketball, but he said, no you’re not that good. Maybe you can play a little in college but that’s it. So, he and my mother convinced me to go to Yale. After graduating from Yale in 1965, I went to law school at Berkeley, graduating in 1968.

When I got out of law school I joined Norman Hilbrecht and Terry Jones. Norman had spoken with me when I was in high school when I was deciding where to go to college.

He had just graduated from Yale Law School. He convinced me I should go to Yale. When I told him I wanted to be a lawyer, he told me to give him a call at that stage. So I did.

I started doing a lot of civil rights stuff and leading antiwar demonstrations.

At the same time, I was working with the League of Women Voters to integrate black elementary schools and doing a lot of other civil rights work. I did the first fair housing case.

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I convinced George Franklin, who was the district attorney, that the ordinance should be changed that allowed school board members who were assigned districts to run at large. I explained to him that would prevent an African American from being elected to the school board even though one of the districts was predominantly African American. I told him he should look up “one man, one vote,” and if they didn’t change the ordinance then I would file a lawsuit. They changed the ordinance and eventually we had a black school board member.

You were doing work from your heart and your gut. What effect did that time have on you?

A year ago I got the Anti-Defamation League Jurisprudence Award. I don’t like to accept awards, but I told them that I would do it if it was focused on my civil rights work and not the things that made money later on in life. So we did. In my little acceptance speech, I said that was the most important part of my career — the impact I could have on people’s lives just by filing a lawsuit or threatening to file a lawsuit during that three- to fouryear period when I was doing civil rights work and leading antiwar demonstrations.

In the midst of all that, when I was having my house picketed by Operation Bus Out People, O’Callaghan was elected governor. I worked on his campaign from noon on each day, plus weekends, every hour I could. He was a real underdog to Edward Fike, his Republican opponent. Mike came out of nowhere, he was nowhere near as well-funded as Fike, but he ended up winning the election.

I was kind of one of six guys who served as his cabinet. The night he got elected he wanted to have a meeting before he went to Hawaii, because he promised his wife Carolyn he would take her to Hawaii to rest for a week after the campaign. So he called a meeting with just the six of us. I was just a young pup at the time. But he said before leaving he was going to announce two appointments. He said, I’m going to nominate Phil Hannifin to be chairman of the Gaming Control Board. And he said, I’m going to ask Frank if he’ll accept an appointment on the Gaming Commission. He could only appoint one Democrat and two Republicans. The other guys were shocked as well as I that I was appointed at age 26 after leading antiwar demonstrations and integrating the elementary schools.

That was probably the biggest factor of where I went in my career. Once I got on the Gaming Commission I learned gaming law. I met Shannon Bybee, who was a member of the Gaming Control Board. In those days the only legalized gaming was in Nevada. The only way you learned gaming law was coming out of the government. So I learned a lot.

I was re-appointed in 1975, but then Shannon resigned. So I called the governor and resigned from the Gaming Commission because I wanted to bring Shannon into my law firm.

At that time there was Norman, Terry, Shannon and myself, and we embarked on trying to create a gaming practice. It didn’t happen overnight because Shannon and I were considered the “hard noses” on the Gaming Commission and the Gaming Control Board. We didn’t feather any nests while we were there. But we thought if you did it better, faster and cheaper, you’ll be successful, and it worked. So we built our practice through the years.

At that time Lionel Sawyer had most of the business. Within two decades we had most of it, with the exception of MGM, which turned into a PacMan and ate up two of my big clients, Mandalay Bay and Mirage.

That’s how my gaming practice began. I think we did things better and we were very innovative. Shannon left in 1978 and went in-house with Wynn.

I brought in Mike Sloan, who eventually went in-house with Circus Circus at the time. I brought in Scott Nielson with him and he eventually went in as general counsel for Station Casinos.

I remember in my acceptance speech for a gaming lawyer award I won, I talked about the most rewarding aspect of my practice. It was the fact that there 16 lawyers that I trained who were out in the gaming industry, either as general counsel or associate general counsel in big gaming companies.

We trained young guys and we must have trained them well because they went on to prominent positions in the gaming industry.

One of the things I did that was most important for the industry itself was when Bally’s was getting ready to come out of bankruptcy back in the early ’80s, Fidelity Management had about 60 percent of their bonds. When you come out of bankruptcy, you convert those bonds into equity, and Fidelity was not going to come forward for licensing. So, New Jersey had what they call an institutional investor waiver, where financial institutions that were not going to be involved in the operations could get a waiver on licensing.

I went to Gaming Control Board Chairman Bill Bible and said, what about if I draft an institutional investor regulation similar to New Jersey’s? Bible, who understood gaming law as well as any gaming lawyer, felt comfortable with the state’s ability to regulate and that an institutional investor waiver would be beneficial to bringing investment in to casinos. And that has

brought in hundreds of millions of dollars in investments over the years.

The other important thing, which created billions and billions of dollars in investment over the years, was I created a licensing structure, which we called the “Voteco” structure, which allowed private equity companies to actually purchase a casino. Jack Godfrey and I did this for Colony Capital when they bought Harveys up in Tahoe. As we were looking at the statutes, we saw gaming treated private equity, and their funds, like a private company because it obviously wasn’t public. So every shareholder would have to be licensed, which obviously precluded private equity from ever going forward for licensing. I suggested to Jack, you know what? Our licensing structure is a little weird as far as the requirements. If you’re a publicly traded company, the mandatory licensing only relates to a holder of more than 10 percent of the voting securities of the publicly traded company. I said, what if we created a “Voteco” structure as we called it, where the publicly held company issues two classes of shares — one voting and one nonvoting. The people with the voting shares will have to be licensed. We’ll call that the “Voteco” and those guys will be licensed.

And then what we’ll do is the other shares will be nonvoting and have no license attached to them. We’ll put those in the fund and they’ll have all the economics.

The first one we did, I showed Bible, look, you don’t lose any control at all because the two top guys who run the fund, they’re going to be the two guys in the Voteco, so you’re going to license them anyway. The only ones you don’t license are the limited partners.

That’s the structure we used for Harrah’s with TPG and Apollo, that’s a $34 billion deal, Bay Harbour when they bought the Aladdin, Oaktree when they bought the Cannery, a bunch of them.

These companies and investment bankers would never have had anything to do with Las Vegas if the mob was still involved. But once you get institutional bankers involved, you get mega-resorts. And you were part of that movement that helped usher out the mob.

They were everywhere; they were in every major casino when I was on the commission.

As an example, Paul Laxalt built the Ormsby House in Carson City in 1972. And he could not borrow from any one of the Nevada banks. They would not lend to the gaming industry. The big Nevada banks would not lend the ex-governor of the state money to do the Ormsby House. He got it out of the First National Bank of Chicago.

That all changed when New Jersey legalized gaming. Everybody here thought that everyone would run to New Jersey and they would steal all of our customers. What turned out to be true was that it was the best thing that ever happened to Nevada. It legitimatized the gaming industry.

When Resorts first opened it was a public company and it was $2 a share.

After its casino opened, within a month it was $200 a share. Like I used to say in speeches, the way Wall Street looked at the gaming industry, it was no longer a criminal enterprise — now it was a growth industry. At that point they started lending to the gaming industry and never stopped.

One of the guys who facilitated it, because he took the chance, was Mike Milken.

Vegas Legal Magazine Summer 2018 | Pg. 79

FRANK SHRECK

That’s right, it was those junk bonds.

They were derogatorily named, but what Milken did was he identified some absolutely fantastic companies that were better than investment grade and sold the bonds at high interest rates. When Wall Street saw how much money he was making doing that, they came in and started doing bonding for bad companies. Those went under and then they got the name junk bonds. But those first companies Milken did were all fantastic companies.

Wynn could have never built without that. MGM, all of the big companies.

I represented Steve Wynn for over 40 years, and just before the Mirage opened he was scared to death. All of the pundits were saying you’ll have to make $1 million a day, and Caesars is only making $900,00 and it’s the greatest gaming property in the world. So you’re going to go under. But Steve told the institutional people, he said here’s where they’re wrong: I’m not only going to make money off gaming. I’m going to make it off room, food, beverage, retail and banquet. And he changed the entire marketing structure of the gaming industry. It was either 80-20 or 75-25, gaming to non-gaming. Today it’s exactly reversed. Steve Wynn made money out of every department. He said, we’re giving too much stuff away. We’ll still be the best-priced destination, but we’re not going to just give it away. Even though the building is what everyone replicates, with the 3,000 rooms, the marketing was the key to what Steve did for the gaming industry.

Think of the most brilliant gamers you ever came across and why, for each of them?

I can’t say that in print. You’re putting me on the spot because I represent a lot of guys who think they’re the greatest gamers who ever lived. So it’s difficult for me to name any, because the other ones will get ticked off.

Then let’s just talk about what they did that made them great.

You have to look at Steve Wynn, what he did at the Mirage. I just gave you the first reason. The marketing that he created, and increasing non-gaming revenues, that was the revolutionary thing that he did.

When he built the Bellagio, he told me before it was built that the one thing Vegas does not have is high-end retail, and we don’t have high-end restaurants. He put in Prime, Le Cirque, Renoir, Picasso, and then every other hotel had to bring in top-name chefs to compete with him. So we went from having mediocre food on the Strip to having the greatest food in the world.

Before Wynn we had varying degrees of prime rib.

Right, and the sad thing is, I don’t see anybody on the horizon that’s going to take us to that third level. I don’t see anybody on the horizon who has the imagination, and the courage to go ahead and build it, that Steve had.

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What would you say to young attorney who wants to take on this specialty of gaming?

This is a sad story. I just had that same talk with someone who wanted to come work for my firm. He worked in gaming in the attorney general’s office. I told him the way the industry has changed, now Caesars and MGM have 30 to 35 lawyers in-house. So they have all these in-house law firms and they took away all the beginning work we used to train young gaming lawyers on. They do all of their own application work now, and that’s what we used to use to train them. It’s all done in-house now.

What we get now are the more complicated issues, and you can’t train young lawyers on complicated work. So I told this young man, I’d go back to the AG’s office and into the gaming division. You’ll be thrown right into the pit with all kinds of gaming issues right away. While you’re there you’ll see what the good firms are, where you might want to go to work, you can build up a skill and then go out and market yourself after that.

The dynamics of being a gaming lawyer changed with the huge in-house law firms now. They’re pressured to use less outside counsel.

I’m glad that I rode the big wave. I was a lucky guy. I don’t think there’s anybody who can say they have this kind of experience in gaming. I was there at the beginning in 1971; we drafted regulation that encouraged public companies to come in, to build at finance larger casinos, and at the same time rooting out the bad guys. By the time the Stardust was resolved, they were gone. There were no vestiges left. For one, the feds had all the wiretaps, they knew everybody who had hidden interests or was getting money out of these casinos. The federal strike force did a hell of a job in prosecuting them. The second thing is that the cost of building casinos was so high the criminals could not raise the money to do it.

The difference is, when Caesars Palace was built, the most grandiose casino in the history of the world, it cost $60 million. When Steve Wynn did the show “O” at Bellagio, the showroom and pre-production costs alone were $80 million. The show cost more than all of Caesars Palace did. The cost of playing went up so high and so fast that the bad guys got priced out of the market.

Mark Fierro began his career as a reporter/anchor at KLAS-TV, the CBS television station in Las Vegas. He worked at the U.S. House of Representatives in Washington, D.C. He served as communications consultant on IPO road shows on Wall Street. He provided litigation support for the Michael Jackson death trial. He is president of Fierro Communications, Inc., and author of several books including “Road Rage: The Senseless Murder of Tammy Meyers.” He has made numerous appearances on national TV news programs.

HUMOR //

Summer 2018