Attorney General Announces Indictment in Paradise SPA Home Owners Association Embezzlement Scheme

LAS VEGAS, Dec. 19 -- The Nevada Attorney General issued the following news release:

Nevada Attorney General Catherine Cortez Masto announced today that on Dec. 16 a Clark County Grand Jury returned a six count indictment against Massoud Aaron Yashouafar, 50, of Beverly Hills, Calif., for his actions in allegedly defrauding the Paradise Spa Home Owners Association of over $1 million dollars. "This type of crime is particularly jarring when you realize that older victims, many of whom were living on fixed incomes in Paradise Spa, were forced to find and pay for alternative living quarters when they were still obligated to make mortgage payments on their burned condo units, while waiting for repairs that would never be made," said Masto.

Yashouafar, who served as the treasurer of the Paradise Spa Board of Directors, received insurance checks for two fires which occurred on Sept. 18, 2009 and Jan. 15, 2010.

In his capacity as treasurer of the Home Owners Association he was provided two checks, one over $400,000 and the other check over $430,000 issued by the Civil Service Employees Insurance Group, for property damage to two separate buildings caused by fires. The insurance checks were issued to repair the damaged buildings.

Rather than repair the buildings, Yashouafar deposited the checks in an out of state bank account on which he was the sole signator. As a result, numerous condo owners, many of them senior citizens, were forced to find other living arrangements, while still making mortgage payments on their damaged, uninhabitable units. In some cases, Yashouafar rented units he owned to the displaced condo owners, resulting in them paying him rent while they waited for repairs that were never done because of the alleged theft.

Bank records show that in September 2009, Yashouafar, in his capacity as treasurer, had wired over a quarter of a million dollars out of a Paradise Spa operating account. He subsequently deposited that money into an out of state account and disbursed the money into various personal projects.

Yashouafar was indicted on three counts of theft of property by false pretenses (class B felony) and three counts of embezzlement (class B felony). His initial appearance is set for January 4, 2012 before District Court Judge Carolyn Ellsworth.

Read the indictment by visiting: http://bit.ly/YashouafarIndictment

Anyone who has information regarding this case is asked to contact the Attorney General's Office Bureau of Consumer Protection Hotline at 702-486-3132.

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