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DA files complaint over misuse of co-op funds

The Nye County District Attorney’s Office has filed a criminal complaint against four former board members of the Private Well Owners Cooperative, charging them with offenses including felony embezzlement and felony grand larceny, in connection with the secret diversion of co-op funds to the 2018 political campaign for County Commission of then-board member Dwight Lilly.

Lilly, John Bosta, Thomas Adams and Wade Hinden are all facing multiple felony and gross misdemeanor charges.

“It’s always a bad thing when people entrust their money for something so important to them and the people they are counting on abuse that trust,” District Attorney Chris Arabia said. “Sometimes there isn’t enough evidence in these types of cases to move forward with a criminal prosecution, but this time there is sufficient evidence, so here we are.”

The defendants are charged with taking $3,069.25 of co-op funds and giving the money to Lilly to help his campaign while falsely claiming that the money was reimbursement for expenses incurred by Lilly on behalf of the co-op. Lilly allegedly prepared a phony invoice, and the defendants presented the $3,069.25 expense to the co-op membership as though it were a legitimate reimbursement expense.

On June 12, 2018, Mr. Lilly finished third in a four-person primary race to represent District 5 on the Nye County Commission.

The five-count complaint includes one count of embezzlement, one count of grand larceny and one count of obtaining money by false pretenses, all felonies, and conspiracy to commit embezzlement and conspiracy to commit grand larceny, both gross misdemeanors.

“I promised the people of Nye County my best efforts to deal with corruption, and although it’s a slow and difficult process, moving forward on a case like this is a definite sign of progress,” Arabia said.

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