Former Downtown Business Chair pleads guilty to embezzlement charges
Lenny Chappell, a longtime Carson City businessman and former chairman of the Carson City Downtown Business Association (DBA), waived his right to a preliminary examination in Carson City Municipal Justice Court Friday, pleading guilty to charges of embezzlement and theft.
Chappell and his public defender, attorney Karin Kreizenbeck, asked Senior Judge Robey Willis and special prosecutor Tina Russom, Douglas County Deputy District Attorney, to consider reducing the charges if restitution is made before arraignment Feb. 9 in the First Judicial District Court in Carson City.
The plea agreement would reduce the charges against Chappell to conspiracy to commit embezzlement and theft, a gross misdemeanor requiring a period of probation.
The court stressed to Chappell that failing to make restitution, or changing his plea before the arraignment, would restore the original felony charges brought against him. Felony embezzlement and theft charges each carry a potential 10-year prison sentence.
According to the Nevada Appeal, Chappell is accused of embezzling more than $3,500 from the Platinum Plus Day Spa’s account at Bank of the West and then depositing that money into the DBA’s account.
Chappell worked at Platinum Plus Day Spa in Carson City while also chairing the DBA. He stepped down as chairman in February 2013.
The embezzlement scheme was discovered when the DBA found out money was being taken from its account and replaced with money from another bank account, that of Platinum Day Spa. Chappell has been accused of trying to replace the funds taken from the DBA with money taken from the spa business.
Chappell was arrested in May 2015, but was freed on $20,000 bail while awaiting trial. He remains free on bail leading up to his arraignment in district court.
A special prosecutor was appointed to the case from Douglas County, because of a conflict of interest involving Carson City District Attorney Jason Woodbury and his prior representation of Platinum Plus.
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