Court sentencing for Aaron Yashouafar, best known locally as the owner of First National Center, was delayed Wednesday for 45 days as questions persist as to whether he fully compensated residents of the Paradise Spa condominiums in Las Vegas.
Yashouafar, chief executive of Milbank Reality, entered a guilty plea in July on fraud charges filed by Nevada Attorney General Catherine Cortez Masto, who alleged Yashouafar diverted about $1 million in insurance proceeds paid for fire damage at the Las Vegas complex.
A grand jury indictment obtained by Masto alleged the following: 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 Homeowners Association, he was provided two checks: one for more than $400,000 and the other for more than $430,000, issued by the Civil Service Employees Insurance Group, for property damage caused by fires at two separate buildings, according to the indictment. The insurance checks were issued for repairs.
The indictment determined that rather than repair the buildings, Yashouafar deposited the checks in an out-of-state bank account that he controlled. Condo owners, many of them seniors, alleged they were forced to find other living arrangements, while still making mortgage payments on their uninhabitable units.
The indictment goes on to allege that 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.
Masto said bank records show that in September 2009, Yashouafar, in his capacity as treasurer, wired more than $250,000 from the Paradise Spa operating account. She said he subsequently deposited that money into an out-of-state account and disbursed the money into various personal projects.
Yashouafar did not respond to interview requests Wednesday from The Oklahoman.
Bill O'Donnell with the Paradise Spa residents said $1.77 million in homeowner association fees are still in dispute, and $1.2 million that Yashouafar's attorneys said was paid to the complex's receiver has yet to be given to residents.
O'Donnell said his group is hiring an auditor.
“I think they're buying time,” O'Donnell said. “They don't have any money. They don't have money for First National, they don't have money for (properties owned in) Houston. They're just praying this whole thing turns around.”