LAS VEGAS -- Two longtime water officials are facing a long list of criminal charges, including bribery and money laundering, for their role in the sale of water rights to the local water district.
Las Vegas Metropolitan Police detectives served search warrants Monday night and took one of the men into custody. They are still looking for the second suspect.
Intelligence detectives have been looking at this case since October of 2010 and pulled the trigger Monday night when they served search warrants at the homes of the two principal suspects, both of whom were trusted employees in public water agencies.
Read the criminal indictment
Police say the two men took a kickback of $1.3 million, in effect a bribe, for setting up an inflated sale of water rights to the Las Vegas Valley Water District.
Robert Coache was the deputy state engineer with the state's Division of Water Resources until he retired a year ago. He was taken into custody by police.
His alleged co- conspirator, Michael Johnson, was the chief hydrologist for the Virgin Valley Water District until last August. Last month, that district filed a lawsuit against Johnson, alleging that he had used his position to line his own pocket when he helped a property owner in Bunkerville sell water rights to the LVVWD for an inflated price of $8.4 million -- $3 million more than its probable value.
Johnson's and Coache then set up a front company, Rio Virgin LLC, which was paid $1.3 million by the land owner.
A 25-count criminal complaint was filed by the Clark County District Attorney's Office, including charges of extortion and bribery.
Although Coache was arrested, Johnson has still not been found. Police sources say he has extensive family and church ties in southern Nevada and they expect him to turn himself in.
Rumblings of a scandal have been floating around in rural areas of Bunkerville, Mesquite and Moapa for many months. After the Virgin Valley Water District filed suit against its former engineer, it declined to answer any questions, which was a strong hint that law enforcement was already taking a hard look.
Police say the sale occurred in 2005, though most of the criminal charges -- incidents of money laundering -- took place from 2006 thru 2008.
The landowner, John Lonetti of Bunkerville, has not been charged at this point. Police say the las vegas water district is blameless and is fully cooperating.
Michael Johnson
Robert Coache
