FOR IMMEDIATE RELEASE
Contact: Catherine Lu
(702) 486-6982 / 334-7953
(Las Vegas, NV; August 7, 2013) – Following an investigation by Secretary of State Ross Miller’s office, a Washoe County attorney was arrested yesterday and a faces a maximum of 20 years in prison per count and a $500,000 fine if found guilty. John Shadek, 63, is charged with two counts of securities fraud and one count of theft against a person age 60 or over.
The Washoe County Sheriff’s office arrested Shadek and is holding him at the Washoe County Detention Facility on $60,000 bail. In 2011, Shadek collected a $127,500 check made payable to Capitol Funding Investments, LLC, from an Incline Village resident. In exchange, he promised the investor a promissory note personally guaranteed by Shadek and his business partner Ron Stover.
Shadek assured the investor he would pay back the investment money with interest within 45 days and that it would be used for a business transaction. Instead, Shadek used approximately $17,500 for his personal expenses and transferred the remainder to an entity controlled by Stover. Shandek also failed to mention to the investor that he and Stover had defaulted on various other loans.
In 2012, Shadek offered a second investment guarantee to the investor in a company named Xtreme Iron, LLC or Xtreme Iron Holdings, LLC. He failed to inform the investor of the risks involved. Xtreme Iron Holdings, LLC filed for Chapter 11 Bankruptcy about two-and-a-half months and Xtreme Iron, LLC filed for bankruptcy about one-and-a-half months, prior to the solicitation.
If found guilty, Shadek could be forced to pay $122,500 in restitution, of the original $127,500 he collected from the investor.
“Mr. Shadek took advantage of an elderly investor. It is difficult to watch someone’s retirement savings go down the drain and to feel sympathetic for the perpetrator. As a former criminal prosecutor, I hope for the stiffest penalties to be imposed on Mr. Shadek,” said Miller.
If you have any information pertaining to Shadek, please contact the Nevada Securities Division at (702) 486-2440 or (800) 758-6440.
The Nevada Attorney General’s office is the prosecuting agency. For a copy of the criminal complaint, click here.
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John Shadek's booking photo, courtesy of the Washoe County Sheriff's Office.