LAS VEGAS (KSNV & MyNews3) -- News 3 has uncovered an email that reveals quite a few people knew former Henderson City Councilwoman Kathleen Vermillion was under the microscope before allegations of financial misappropriations surfaced. News Three’s Mackenzie Warren broke the story and is tracking the details.
The allegations are serious, which include a criminal investigation of possible extortion and allegations Vermillion was stealing from a charity that was meant to help kids on the street.
An email obtained by News 3 uncovers Vermillion's own charity, "Nevada Partnership for Homeless Youth," had its own suspicions about her. It also points to 16 people who knew Vermillion failed a drug test. But none of those potential leakers are named in her lawsuit.
Instead, Vermillion says her ex-boyfriend, Clark County Commissioner Steve Sisolak--who is not on the email chain, is the one who shared her medical records.
The email was sent by the current chairman of the NPHY, Colin Seale, on December 28th of last year. There are several items to the email but this bullet point stood out, titled “Investigation of Allegations against COO.”
Vermillion is the current COO.
"If there is no objection, I will, this evening, provide Kathleen with a copy or summary of the allegations against her so that she can prepare whatever documentation necessary to defend herself against it, including her positive results for her drug test."
What came next was a mass exodus of NPHY board members. Eight people in all left the organization. Just five remain on the existing board.
News 3 learned today Vermillion has been placed on paid administrative leave. She earns a salary of $125,000. Vermillion's facing a complaint, filed by her co-worker, with the Nevada Attorney General alleging she laundered NPHY money to pay her salary.
Arash Ghafoori is the one who filed the complaint with the AG and is accusing Vermillion of fraud. Ghafoori is also on administrative leave as the NPHY’s interim executive director. The AG’s office says it could take them anywhere from 8 to 12 weeks before they issue a response to the complaint.
News 3 has also obtained the Metro case file looking into criminal allegations of extortion against Vermillion, her attorney Rob Martin, and her PR representative Mark Fierro. All three are being accused of extortion by Commissioner Sisolak. Sisolak met with those three people Sunday and was told if he paid $3.9 million, the lawsuit would be dropped.
Sisolak calls that blackmail, while Vermillion's camp calls it a settlement.