- HOA News Watch -

Wednesday, March 16, 2005

Not-so-perfect life

Steven Ferguson says his experience at Southern Highlands has been anything but sweet

BY CATHY SCOTT

PHOTOS BY BILL HUGHES

"Southern Highlands. The perfect life."

That's the statement posted on billboards and on the golf community's Website. But this pocket of luxury and estate homes in the southwest Las Vegas Valley has been a not-so-perfect life for at least three families living there, despite Southern Highlands' motto. That's because, they say, they've been targets of racial discrimination. All three families are black. And they are three of the four African-American families who either own homes or live in the upscale community.

Southern Highlands, just off of Interstate 15 near West Lake Mead Drive, is a 2,300-acre master-planned community of high-end homes. The south end of Southern Highlands is where Steven Ferguson and three other black families live.

Ferguson's house -- which, according to Clark County assessment records, was purchased for him by his company -- is on a street just past the guard gate, while the other homes are a few blocks away on what an official with the Las Vegas chapter of the National Association for the Advancement of Colored People called "the black persons' street."

Ferguson, 50, said he chose the $1-million home in Southern Highlands in December 2001 because of the golf course. At the same time he purchased his home, he joined the club -- which charges a $90,000 membership fee and is limited to 360 invitation-only members. He was the first black man to move into the community.

"Only a privileged few can claim membership in such a prestigious and exclusive golf club," the club's Website says. "Admired by many. Experienced by a privileged few."

The 18-hole course was named the Best New Private Golf Club in the Western United States by Golf Digest shortly after it opened in 2000. Ferguson -- whose business attorney is Johnnie Cochran -- has teed off at the best of golf courses. His top three choices, he said, are Pebble Beach, Pinehurst in North Carolina and the Plantation Course on Maui. He enjoys those resorts, he said, because they're secluded and private. That's also the thing he said that attracted him to the Southern Highlands Golf Club.

"I can walk out my back door and be on the golf course," Ferguson said, as he sat in his dining room overlooking the 9th fairway behind a fence in his back yard. "It's quiet."

But by late 2002, Ferguson said, trouble began for him at Southern Highlands. That's when someone tacked to his front door a historical photo of a black man being lynched -- along with a note that read, "THE ONLY GOOD NIGGER IS A DEAD NIGGER! GET YOUR BLACK ASS OUT OF SOUTHERN HIGHLANDS!"

Ferguson said the homeowner association didn't do anything after the discovery of the racially derogatory poster -- which, he further said, is a violation of his association's rules to protect him. Ferguson said that he wasn't looking for a fight and that the discrimination came out of nowhere.

"When you're an African-American in this world, you learn how to deal with discrimination," he said. "I don't have a chip on my shoulder looking for someone to discriminate against me. But the case here -- it's so blatant it's difficult to ignore."

In April 2003, Ferguson was told by the golf course manager at Southern Highlands that he was no longer a club member. A hand-delivered letter from the club said he had resigned and that his resignation had been accepted. Ferguson, in turn, sent a letter back saying he had not, in fact, resigned and asked to be reinstated. He was reinstated, but was kicked out of the club again in September 2004.

So Ferguson filed a temporary restraining order and preliminary injunction.

In an affidavit filed with the court, Ferguson said he feels a campaign has been launched "to force me out of the club by any means necessary and has personally created an atmosphere for me to be harassed and disrespected by employees and certain members of the club." He said he has never broken any rules or regulations.

Southern Highlands Golf Club attorney Mark Ferario said the first time he learned of any racial discrimination allegations was in federal court. "At the earlier state hearing, in front of the judge, Mr. Ferguson made no mention of discrimination," Ferario said in a telephone interview. "The judge didn't grant the claim and dismissed the case. Four months later, [Ferguson] filed the federal case and everything hereafter is about race."

In February of this year, U.S. District Judge James Mahan granted Ferguson the injunction, pending the outcome of his racial discrimination case, reinstating his membership and allowing him to play golf and use the 42,000-square-foot clubhouse's amenities. Southern Highlands has appealed the rulings.

However, when Ferguson was recently out on the practice course on a Sunday, he was told that his dues were not up to date, that his credit card was invalid, and he was ordered off the course. Since then, Ferguson said he has paid a court-ordered fee and posted a current credit card with the club, so his dues can be charged each month and he can be reinstated once again.

Until the decision about Ferguson's membership standing is sorted out, he has filed a federal lawsuit accusing the club and its president, Garry Goett, of violating the federal Fair Housing Act.

When reached by telephone, Goett said an employee "very discreetly" approached Ferguson that day to ask him about his membership. "[Ferguson] came out and tried to play before his rights had been reinstated," Goett said. "He knew that. He had not put up the money that was required by the court."

Goett said that Ferguson, as of March 15, still had not paid his fees nor posted a current credit card -- and, therefore, according to the judge's order, could not use the club. Once Ferguson complies with the court's request, Goett said, his membership will be reinstated.

"We think Mr. Ferguson is trying to embarrass and intimidate us with these false claims," Goett added. "We're just not going to yield to this kind of pressure."

Since the court filings, Ferguson's house has had eggs thrown at it, glue put in his front-door lock and a rock with the words "Fuck You" written on it thrown at the back of his house. Also, he said, someone has been leaving phone messages at his house, saying: "You're going to die, nigger."

"The very day after I informed the attorneys on the other side that I had filed the complaint, eggs were thrown at his house," said Reno-based attorney Ian Silverberg, who represents Ferguson.

Each time there's been vandalism, Ferguson said, he's called Southern Highlands security and Metro Police to file reports and make them a matter of record. No arrests, however, have been made.

"The rock came from the golf course behind his house," Silverberg said. "It's somebody who's allowed on the golf course. That narrows the universe pretty much as someone who's a member or an employee and someone who knows his house."

Southern Highlands executives told the court, in their answer to the lawsuit, that Ferguson's club membership was terminated because he's an ex-felon. Ferguson, according to Silverberg, pleaded no contest in 1994 to a theft. The charge, as a result, was reduced to a misdemeanor, Silverberg said.

"It was arising out of a divorce over property left at his home," Silverberg said. "There's no felony there. It's a misdemeanor. He's able to vote and have guns."

Silverberg said he ran a background check on his client and did not come up with the conviction because the case has been sealed. Club officials, however, discovered a desist-and-refrain order out of California having to do with investments Ferguson, a former CEO of an

investment company, promised to make on behalf of clients. A reference to a felony conviction for "three charges of grand theft" is made in the order, which is dated April 2003.

Attorney Ferario said he told the court, "The straw that broke the camel's back was when the California Corporation's order was discovered, [and] that's when we discovered the felony."

According to the court record, Ferario told the judge: "[The California order] recites in there a number of factual allegations ... that [Ferguson] engaged in fraudulent business practices."

After learning of the California order, Ferario said, the club terminated Ferguson's membership.

The California order was issued against Ferguson because of corporate code violations in California, according to the state's Website, and for not paying back investors hundreds of thousands of dollars. It prevents both Ferguson and his former company -- Global Venture Group, a Nevada company of which he was CEO -- from doing business in California.

"Ferguson has offered a variety of different investment contracts," the order, which was signed by California Corporations Commissioner Demetrios A. Boutris, reads. "In some cases he provided no written instrument to evidence the investment. In other cases he provided promissory notes to investors, issued either by himself in his individual capacity or by Global Venture Group.

"The Department of Corporations," the order continues, "has not issued a permit or other form of qualification authorizing the offer and sale of securities issued by Steven Michael Ferguson and/or Global Venture Group in this state. ..."

Silverberg defended Ferguson, saying the background check by Southern Highlands executives was done after his client was removed as a club member.

"I think it was done way after the fact, when they were forced to articulate a reason, and they came up with this [felony] claim," Silverberg said.

Whatever the reason for the membership termination and vandalism at Southern Highlands -- whether it's because of discrimination or because of Ferguson's background -- living at the golf community has not been what he expected. Before joining Southern Highlands, Ferguson -- who describes himself as "a retired businessman" -- was a member of Mountain Gate Country Club in Bel Air, Calif., a tony suburb of Los Angeles.

"I never had a problem there," Ferguson said about his two-year membership. "It was very nice, but the course itself was relatively small. That's one reason I left. Southern Highlands' club manager called to find out what kind of member I was, and Mountain Gate gave me a great recommendation."

Ferguson isn't the only black homeowner at Southern Highlands who says he's been discriminated against. One family, which asked not to be identified, has been trying to do improvements to its home and have sought approval from the homeowner association -- only to be denied. Also, a daughter had gone to the country club to eat and been told her attire was improper and to go home and change, she said -- even though she was dressed the same as everyone else.

Goett said the club doesn't practice discrimination and that he was sorry to hear members felt it had. "We treat all our members the same way," he said. "[But] we have a dress code that has to be complied with."

A third homeowner, who also did not want to be identified for fear of retaliation, has faced similar situations, including visitors being turned away at the gate because the guards said no resident by that name was in the computer system. That homeowner, who lives out of state, was planning to move to Southern Highlands full time -- but has since decided against it.

Ferguson said a fourth homeowner, baseball Hall-of-Famer Reggie Jackson -- one of five

black club members -- complained to management about Ferguson being kicked out of the club.

"I can't comment on that right now," said Jackson, when asked about racism at Southern Highlands. "I don't like to get involved in things like this."

Jackson owns three houses at Southern Highlands, according to the Clark County assessor's office. He rents out two, Ferguson said, and stays in the third home when he visits Las Vegas -- which is about every two months.

"He's a friend," Ferguson said of Jackson.

Other members of the club have approached Ferguson, he said, apologizing for what's been happening.

"I thought I was all alone when this thing hit the press," he said. "But people came out to wish me well. There are a number of members who support me. They've come up to my door and said they're deeply sorry."

Not everyone, however, appears to readily acknowledge Ferguson's presence at Southern Highlands. When a reporter recently drove to the entrance gate and asked permission to go to Ferguson's home, a uniformed guard asked: "Who?"

"Steven Ferguson."

"Scott Ferguson?" the guard asked.

"No, Steve Ferguson."

The guard looked confused, and then asked again: "Ferguson?"

"Yes."

"There's no Ferguson here," she said.

"Yes, a Steven Ferguson lives in Southern Highlands."

"Oh, OK," she responded. She then called Ferguson's home to confirm he was expecting a visitor.

Later, when asked what employees with TSI -- the company that handles security for Southern Highlands -- were doing to prevent vandalism at Ferguson's home, the same guard said: "I'm not allowed to comment."

Rick McGinnis, security director for TSI, did not return a phone call for comment. In cases involving litigation, it is common for parties not to talk to the media.

However, in a recent letter to Ferguson, Goett wrote: "As president of the club and as an owner, the club documents grant me considerable authority to deal with membership and member issues which includes, but is not limited to, recalling a membership at anytime 'for any or no reason whatsoever.'

"While this is a power not to be exercised lightly, I will not hesitate to recall a membership if in my opinion I feel it is in the best interest for the membership and for the Southern Highlands Golf Club."

Ferguson said he took the letter as a threat.

Supporting Ferguson in his battle against Southern Highlands is the local chapter of the National Association for the Advancement of Colored People. Peggy Maze Johnson, publicity chairwoman of the NAACP, who helped write a news release for Ferguson, said Ferguson has complied with all of the membership rules -- but Southern Highlands still refuses to allow him to play golf on its course.

"He can't even go to the club's restaurant," Johnson said. "The three black families, who aren't members, live on 'black people's street.'"

Until 2003, Ferguson appeared to be a respected member of the club. A photo hanging on a wall of his family room shows Ferguson standing next to a smiling Gov. Kenny Guinn, who is an honorary club member (according to Southern Highlands' roster). The photo was taken after Ferguson had made a $10,000 donation to Guinn's election campaign at Southern Highlands Golf

Club's invitation-only fundraiser.

And Ferguson's attorney said he is confident his client will win his fight with Southern Highlands.

"When you go to federal court and you get an injunction when everybody's telling you you're crazy and you won't win, you feel confident," Silverberg said. "A lot of people have come out on Steve's behalf, and that makes me feel even more confident we'll prevail."

Ferguson, too, said he feels he'll win the court case and plans to take it all the way to trial if he has to.

"I don't want this to happen to anyone else," said Ferguson, who plans to continue living and playing golf at Southern Highlands. "My father before me went through this sort of thing in the South, you know, riding at the back of the bus. He said to me once, 'It's like a wild dog. If you take off running, they'll keep chasing you.'"

Cathy Scott is a Las Vegas-based crime writer and author of Murder of a Mafia Daughter and Death in the Desert. Her column Crime & Punishment (see Page 14) appears weekly in CityLife. Contact her at 702-243-2923 or by e-mail at cathy@cathyscott.com.

http://www.lvcitylife.com/articles/2005/03/15/cover_story/cover.txt

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