Attorney General Laxalt Announces Sentencing of Three Defendants in Connection With Multiagency Investigation of Violent Crime and Motorcycle Gangs


January 27, 2016

Las Vegas, NV – Today, Nevada Attorney General Adam Paul Laxalt announced that Michael Joseph Hughes, 42, of Florida, Gary Kruger, 48, of Henderson and Steven Martin Shaw, 41, of Las Vegas, were sentenced for insurance fraud, a category “D” felony. The three individuals were sentenced as a result of a multiagency investigation conducted by local, state and federal investigators. The investigation, referred to as “Operation Pure Luck,” targeted violent crime and motorcycle gangs in the Las Vegas area. The defendants conspired to conceal a motorcycle in order to report the vehicle as stolen to Progressive Insurance and obtain an insurance payment for the value of the vehicle. The fraudulent acts were committed in October of 2012.

“Today’s conviction is a result of a unified effort of law enforcement agencies to ensure that those who commit financial crimes against the state are brought to justice,” said Laxalt. “My Office will continue to partner with other agencies to prosecute those who fleece insurance companies and taxpayers out of their hard-earned monies.”

Eighth Judicial District Court Judge Jessie Walsh sentenced Shaw to 12-32 months in prison, while Hughes and Kruger were sentenced to 12-30 months. All terms were suspended, and the defendants were placed on probation for terms not to exceed one year. They were also ordered to pay restitution of more than $5,500 to Progressive Insurance, as well as pay $5,000 in investigative costs. Hughes was ordered to forfeit a Harley Davidson motorcycle seized in connection with the insurance fraud offenses.

Operation Pure Luck’s investigation resulted in the seizure of 43 firearms, 7.5 pounds of methamphetamine, 161 grams of cocaine and 2,000 prescription narcotics by local, state and federal law enforcement. A total of 32 defendants were arrested and charged in state and federal court with a variety of crimes.

This case was investigated by state and federal investigators from the Las Vegas Valley and Southern California. The insurance fraud case against Hughes, Kruger and Shaw was prosecuted by Deputy Attorneys General Michael Kovac and Behnaz Salimian.

To view the criminal indictments for Hughes, Kruger and Shaw, click on their respective links. To file a complaint about someone suspected of committing fraud, click here.

 2016-01-27_Michael_Hughes  2016-01-27_Chad_Kruger  2016-01-27_Steve_Shaw
Hughes, Michael Kruger, Chad Gary Shaw, Steven Martin

(Photos courtesy of the Las Vegas Metropolitan Police Department)

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