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Technology Stocks : tmrt/tmrte 2themart.com -- Ignore unavailable to you. Want to Upgrade?

To: cuemaster who wrote (123)	10/10/1999 1:22:00 PM
From: Smartypts	Read Replies (1) \| Respond to of 487

Rebeil and his companies are accused of civil conspiracy, fraudulent misrepresentations, civil aiding and abetting, embezzlement and breach of contract while Magliarditi was accused of legal malpractice in the suit filed earlier this month. Gem Homes exec, attorney sued By Richard N. Velotta LAS VEGAS SUN February 24, 1999 A Las Vegas home builder and his attorney have been sued in Clark County District Court over several development deals that occurred over a five-year period. Steven Rebeil and three companies with which he is affiliated -- Gem Homes Inc., Gem Development Inc. and Leiber Inc. -- and his attorney, Dominic Magliarditi, were named in a suit brought by Siefert Development Inc. Rebeil and his companies are accused of civil conspiracy, fraudulent misrepresentations, civil aiding and abetting, embezzlement and breach of contract while Magliarditi was accused of legal malpractice in the suit filed earlier this month. Rebeil and Magliarditi could not be reached for comment on the allegations. Siefert Development President Lee Siefert's suit contains several accusations. It says: Rebeil urged subcontractors to submit inflated bills on Gem Homes and Gem Development projects in which Siefert was a contractor. The suit says Rebeil would pay the subcontractors on the basis of the ficticious bills, then use the inflated amount as a credit for contractors' services. Those credits, valued at $800,000, were converted by Rebeil to build a personal residence, in what the suit calls a "sophisticated embezzlement." When Seifert confronted Rebeil, he paid the company $95,000 "ostensibly as a resolution for the complaints," but Seifert returned the check, the suit says. Seifert entered a partnership with Gem Development on a $1.42 million land deal in which both companies were to pay $710,000. The suit says Rebeil secretly purchased the property for $980,000, then conveyed that property to the capital of the partnership via a double escrow at an inflated value. The double escrow artificially inflated the value of the land and impacted the partnership's ability to sell it. When developing the partnership's land, the suit says, Rebeil allowed more units to be built than parking could support, ultimately hurting the partnership. In another land deal partnership, Seifert and Leiber Inc. each put up $1.13 million, but development and construction was paid for by another Rebeil affiliate. The suit says there is no evidence Leiber was properly incorporated. In addition, a subcontractor placed on lien on the property and Seifert put up a $25,000 bond that wasn't reimbursed to satisfy it. The suit also said two projects developed by the partnership were not built in compliance with U.S. Department of Housing and Urban Development and Americans with Disabilities Act standards. The malpractice suit against the attorney says that he knew of the alleged wrongdoings when he advised Rebeil. The suit seeks unspecified general and special damages, punitive and exemplary damages and a court order for an accounting of the partnerships. Rebeil, Magliarditi and Gem have been in the public spotlight in the past. In 1997, the state Gaming Commission denied applications for gaming licenses for Rebeil and Magliarditi when their Gem Gaming Co. developed the Reserve hotel-casino in Henderson. The commission cited "overwhelming evidence" of a credit scam at Gem Homes in denying the license. The project eventually was turned over to Ameristar Casinos Inc., which agreed to finish construction of the 224-room African-themed property.