Clark County Commission lawsuit 2019
Jones has been accused by mining company Gypsum Resources LLC of misleading the state ethics commission,engaging with the County and its leaders in "governmental misconduct",as well as influencing political support for Nevada Governor Steve Sisolak in exchange for "political favors." [25] Both Jones and Sisolak rejected these claims with Sisolak pointing to prior statements to demonstrate that his position on the matter was unchanged. [26] The original proposal,which was announced in 2003,detailed a plan to develop 5,500 residential homes on a piece of property named Blue Diamond Hill overlooking the Red Rock Canyon National Conservation Area. In response to this plan,the Clark County Commission created a zoning ordinance for the area,limiting the amount of development allowed. Gypsum Resources LLC owner Jim Rhodes sued the commission and a Federal court ruled in the developer's favor. In 2011,Gypsum Resources was approved to develop 7,000 residential homes on Blue Diamond Hill –1,500 more than previously proposed,contingent upon the acquisition of a federal roads permit. [27] [26] This ignited opposition from the nonprofit activist group Save Red Rock,and after outspoken public forums,and the developer's failure to obtain a federal roads permit,the Commission voted to deny Gypsum Resources' request for a waiver to continue without one. [28] In July 2019,after multiple failed attempts to develop Blue Diamond Hill,Gypsum Resources LLC filed for bankruptcy. [29] In May of that year,Gypsum Resources opened a lawsuit against Clark County and The Clark County Board of Commissioners,alleging that elected officials "violated the right to due process" and "failed to act in good faith when reviewing paperwork related to the project," resulting in financial damages exceeding $1 billion. Additionally,the lawsuit challenged Jones' ability to vote on Gypsum Resources related proposals. [30] Gypsum also accused Jones of destroying evidence by deleting text messages from his phone related to the company's development. [31]
On April 21,2023 Jones was sanctioned by Federal Magistrate Judge Elayna J. Youchah for deleting text message evidence relating to the lawsuit in bad faith. Judge Youchah,in part,wrote Jones,"was less than candid about the deletion when testifying at deposition and in declarations,as well as when presenting argument to this court is clear. Whether the act of deleting the evidence was in bad faith or for an improper motive is not a close call." [32] Judge Youchah went on to say,"Mr. Jones deleted all texts knowing the role he played in achieving the vote to deny Gypsum the waiver it sought and he did not want his dedicated involvement in this outcome,or his communications with the Sisolak campaign,Commissioner (Steve) Sisolak or anyone else with whom he communicated about the deal he struck,to come to light." [33] Jones attempted to appeal the sanction which was denied. [34]
Following the Federal sanctioning of Jones community outrage ensued and boiled over at a Clark County Commission meeting on May 2,2023. Numerous speakers shared their discontent about Jones with one describing him as a "cancerous sore" while many others called on him to resign. [35]
The Nevada State Bar opened an investigation into the conduct of Jones on May 11,2023. [36]
On May 17,2023 Jones officially resigned his position as Vice Chair of the Clark County Commission,while continuing to retain his seat on the commission. Jones said,"By stepping down as Vice Chair,I am hopeful that the ongoing and contested legal disputes in the Gypsum Resources litigation will not distract further from the important work of Clark County and the Board." [37]
On April 17,2024,following an evidentiary hearing,Jones was sanctioned for deleting text messages by Eighth Judicial District Court Judge Joanna Kishner. [38]
The Las Vegas Review Journal called on Jones to resign and labeled him as "covered in disgrace" on May 4,2024. [39]
On June 18,2024 Clark County approved an $80 million settlement in favor of Gypsum Resources LCC. Clark County Commission Chairman Jim Gibson said,"We have done some things that we’re not proud of as a county. Those things are things that we will live with." [40]
The Las Vegas Review Journal described the $80 million settlement with Gypsum Resources LLC as "Justin Jones’jackassery" and that a monument should be constructed "in front of the Government Center featuring Mr. Jones shoveling taxpayer money into a blast furnace." in an editorial published July 13,2024. [41]
The Nevada State Bar's two complaints [42] against Jones stated he "engaged in conduct involving dishonesty,fraud,deceit,misrepresentation,or that is prejudicial to the administration of justice by intentionally destroying evidence and then lying by omission about the destruction" and also said Jones "engaged in criminal conduct" which were published in a Las Vegas Review Journal article on November 26,2024. [43]
Jones will be allowed to present evidence of his "mental state" when he deleted text messages at his disciplinary hearing where he faces disbarment in March 2025. [44]
