KLAS-TV Channel 8 News Las VegasAssemblyman Avoids Debts, Blames Economy and Investors
With 10 short months left to cement his legacy as a lawmaker, Assemblyman Morse Arberry has found himself isolated and alone on one issue from his peers: he does not pay his taxes and fails to pay his debts, now totaling nearly $500,000.
In recent weeks, the I-Team has compared the tax records of every single Clark County state lawmaker. During the initial investigation, fellow Assemblyman Harvey Munford was found to be missing payments for months, totaling just over $2,000.
Within one hour of being told of the lapse, Munford acknowledged the mistake and paid his debt in full. Arberry, however, avoided on-camera interviews and chose to leave little explanation.
Arberry joined the legislature in 1985 and has served on the Ways and Means Committee nearly his entire time in office. That powerful group controls spending and a large part of the tax revenue for Nevada.
Earlier this week, the I-Team finally spoke with Arberry on the record about the financial problems.
"There's a lot of people in the same boat that I am. I'm doing the best that I can and the best that I know how," Arberry said.
Standing beside his Mercedes-Benz sedan outside the non-profit Urban League, where Arberry works, the Democrat said his real estate company, Canyon Lake Mortgage, had many problems over the last few years.
He repeated the same explanation used weeks ago that he needed to speak to fellow investors to understand the true picture of what was happening with the homes. All six are listed in Arberry's name, however.
"It's a public record. I'm not trying to hide it," he said.
Arberry owes more than $2,200 dollars at his Walker Street address near Martin Luther King and Washington. The bill has not been paid since May of 2008, on the same day the I-Team's initial story on tax problems first aired.
When told a single check could take care of that problem, Arberry seemed to blame fellow investors. "Yeah, I know. But you know, that's true. But I can tell you, I don't take the whole blunt of it," he said.
The back taxes are not Arberry's only financial problem. Arberry owes more than $496,000 in homeowner association dues, foreclosing homes, and sewer and trash liens.
When reminded he failed to pay his taxes in 2008 until told about it by the I-Team, Arberry distanced himself from responsibility. "Well, that's because you're making an issue out of it," he said.
Arberry reiterated he is term-limited out after the November elections, pointing out he will have responsibility.
"What I saying is that you won't be calling me," he said. "I've been in the legislature for 25 years and I think I did a damn good job balancing the budget based on moneys we had to work with," Arberry said.
When reminded he appears to have problems balancing his own budget based on the toll in debts, he walked away. "I'm not going to discuss my personal issues with you. You have a nice day," he said.
Based on recorder filings, Arberry and his potential partners are suing banks over the massive debts at two properties in an attempt to slow the foreclosure process. Arberry's Walker Street property is a little over a year away from being seized by the County and sold at auction. Clark County gives owners three full years to pay off even a few hundred dollars in back taxes.
After that, Arberry would join the estimated two percent of homeowners with seized properties.
His final day in office will November 2nd, 2010.
