Tahoe attorney charged with securities fraud | SierraSun.com

Tahoe attorney charged with securities fraud

John Shadek
Courtesy WCSO |

INCLINE VILLAGE, Nev. — Washoe County lawyer John Shadek, 63, has been charged with two counts of securities fraud and one charge of theft against a senior after an investigation by the Secretary of State’s Office.

If convicted, Shadek, who has practiced in Incline Village, could be sentenced to up to 20 years prison on each count and face a $500,000 fine.

According to Secretary of State Ross Miller, Shadek collected a $127,500 check to Capitol Funding Investments from an Incline Village resident in 2011, promising the investor a promissory note guaranteed by Shadek and his business partner. He reportedly promised the investor that the investment would be repaid with interest in 45 days.

Instead, Shadek used $17,500 for personal expenses and transferred the rest to an entity controlled by his partner, Ron Stover, according to the release from Miller’s office.

The charges say Shadek offered the investor a second opportunity in 2012, but failed to tell the investor about the risks involved. The two companies linked to that investment both filed for bankruptcy before that solicitation was even made.

“Mr. Shadek took advantage of an elderly investor,” Miller said. “It is difficult to watch someone’s retirement savings go down the drain and to feel sympathetic for he perpetrator.”

He called for Shadek to get the “stiffest penalties” in the case.

Support Local Journalism


Support Local Journalism

Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.