Closing arguments next week in Mustang Ranch trial

The panel will be back in the courtroom of U.S. District Judge Howard McKibben on Tuesday to hear closing arguments in the case.

Federal prosecutors allege A.G.E. is a front for fugitive brothel baron Joe Conforte, who fled the country in 1991 to avoid prosecution for tax evasion and is believed to be living in South America.

Colletti, a former madam at the brothel, and others are accused of being part of an elaborate scheme to cheat the government and hide Conforte's continued ownership of the bordello east of Sparks.

A 33-count indictment charges them with racketeering, wire fraud, bankruptcy fraud, witness tampering and conspiracy.

Federal prosecutors allege Conforte, with the help of his former lawyer Peter Perry and others, bought back the Mustang Ranch after the Internal Revenue Service sold it at auction for back taxes in 1990.

Perry and Joann Olcese, former bookkeeper at the Mustang, have pleaded guilty to fraud charges and are awaiting sentencing. Both testified for the prosecution.

A.G.E. lawyer Richard Sherman agreed with the government's charge that Conforte illegally bought the brothel in 1991 under the guise of Mustang Properties, Inc.

But he told jurors the later sale to A.G.E. was completely legal.

"Joe Conforte sold his interest when he sold the property to A.G.E. He was paid off. He took his money and took off," Sherman said earlier in the trial

On Thursday, Carlos Peieira, a Brazilian national, testified for the defense that he witnessed a Conforte association secure a $2.5 million loan in 1991.

Peieira said Eduardo Neves changed the money from Brazilian to Swiss currency before he left for a European business trip. Neves, a former airline executive from Brazil, is among those named in the indictment.

Peieira's testimony drew protest from Assistant U.S. Attorney Michael Barr.

"This is incredibly unreliable," Barr said, noting that Peieira, who is a lawyer in his own country, did not provide any records or documents to support his testimony.

archive