Brothel boss, former county commissioner indicted

RENO, Nev. - Fugitive brothel boss Joe Conforte was indicted by a federal grand jury and a former local politician arrested at the Mustang Ranch was set to appear in court today on related criminal conspiracy charges.

A federal grand jury late Wednesday indicted Conforte and Shirley Colletti, a former Storey County commissioner and former manager of the infamous bordello 12 miles east of Reno.

Colletti was arrested at the Mustang Ranch about 5:30 p.m. on Wednesday, FBI agent Jerry Hill said.

She was to appear before a federal magistrate today on charges of racketeering, conspiracy and wire fraud.

Conforte is charged with racketeering, conspiracy, money laundering, wire fraud, bankruptcy fraud and witness tampering. He has been on the lam since he left the country eight years ago and last was seen in Chile.

"We do believe he is in South America. Beyond that, I can't comment," Hill told The Associated Press Wednesday night.

"Basically, the indictment indicates that the government believes there has been a criminal conspiracy among several parties in relationship to the operation of the Mustang Ranch," Hill said. "It's a very complex case that goes back years."

The 33-count indictment alleges that Conforte arranged to purchase the Mustang Ranch, a legal brothel, and other assets seized by the Internal Revenue Service by fraudulently using two companies known as Mustang Properties Inc. and A.G.E. Corp. as fronts for his ownership.

A.G.E., the current owner of the Mustang Ranch, also was named.

The indictment accuses Conforte of using current employees of A.G.E. to make checks and wire transfers totaling over $4 million to Conforte's representatives from 1993 through 1996.

The charges come a month after a former attorney for Conforte, Peter Perry, alleged in a related lawsuit that Ms. Colletti and Storey County Sheriff Bob Del Carlo took cash from Conforte.

Perry's suit contended that Conforte still has a hidden interest in the Mustang Ranch, which was sold at an IRS auction in 1990.

Joann Olcese, a bookkeeper at the ranch, also was indicted along with Eduardo Neves, a Brazilian national who is alleged to be one of the straw owners of A.G.E.

Colletti was being held at the Washoe County Jail pending today's court appearance. Summonses were issued to Neves and Olcese requiring them to appear in court at a future date, Hill said.

He said the indictment contains two counts which would require A.G.E. to forfeit $1.8 million and several pieces of real property, including the Mustang Ranch brothels, to the United States government.

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