The extensive investigation into corruption within the cannabis licensing process in Las Vegas has resulted in another conviction, with a local man pleading guilty to federal bribery charges.
The case is tied to the broader scrutiny of how licenses were granted in Clark County and follows the earlier guilty pleas of former County Commissioner Steve Pacheco on similar federal bribery counts.
The man convicted was found to have been involved in illicit dealings related to the lucrative and competitive cannabis licensing system.
The FBI's investigation, which secured key evidence including $62,900 that Pacheco admitted to burying in his yard, has exposed a network of corruption where officials and intermediaries were exchanging bribes for preferential treatment in the licensing process.
Another figure, Galvan, who allegedly served as an intermediary in the sale of a license, failed to appear in court and was hit with a default judgment, having previously denied wrongdoing.
Federal prosecutors have emphasised that this conviction sends a clear message: 'money laundering in connection with the sale of startup companies is no less blameworthy than other types of fraud and will be punished accordingly.' They stress the need for this message given an 'alarming trend' of founders and executives of small startup companies engaging in fraud to attract investors, a practice which undermines fair business practices.
The case is tied to the broader scrutiny of how licenses were granted in Clark County and follows the earlier guilty pleas of former County Commissioner Steve Pacheco on similar federal bribery counts.
The man convicted was found to have been involved in illicit dealings related to the lucrative and competitive cannabis licensing system.
The FBI's investigation, which secured key evidence including $62,900 that Pacheco admitted to burying in his yard, has exposed a network of corruption where officials and intermediaries were exchanging bribes for preferential treatment in the licensing process.
Another figure, Galvan, who allegedly served as an intermediary in the sale of a license, failed to appear in court and was hit with a default judgment, having previously denied wrongdoing.
Federal prosecutors have emphasised that this conviction sends a clear message: 'money laundering in connection with the sale of startup companies is no less blameworthy than other types of fraud and will be punished accordingly.' They stress the need for this message given an 'alarming trend' of founders and executives of small startup companies engaging in fraud to attract investors, a practice which undermines fair business practices.