Judge bilked in extortion case

District Court Judge Wayne Pederson was the victim of extortion this summer after having sex in his Reno hotel room with a known drug user while he was attending courses at the National Judicial College, a Reno police report states.

Reno Police Department spokesman Steve Frady confirmed Thursday that a case was investigated with Pederson listed as the victim of extortion.

Reno police opened an investigation July 11 after Pederson reported his wallet had been stolen.

The report states Pederson met Irene Bailey, 35, July 10 for dinner, and she ended up staying the night in his hotel room. Pederson was staying at the Silver Legacy while attending judicial courses at the National Judicial College.

The next evening, Pederson, 53, reportedly picked up Bailey at an apartment on West Second Street. The two ate at the Peppermill and had drinks before going to Pederson's room for sex, according to Reno Police Department reports.

While Pederson showered, the report states, Bailey allegedly took his wallet and left.

Pederson told investigators he received several phone calls that night demanding money.

"A male voice asked Pederson if he was running for judge. Pederson answered yes. The male then told Pederson he needed to give him his credit card PIN number. The man told Pederson if he did not give his PIN number the caller and Bailey would report to police Pederson raped Bailey," the police report states.

Later, Bailey called, telling Pederson someone was going to hurt her if he did not pay $500. Pederson offered to pay to get back his credit cards, a concealed weapons permit, his pilot license and other property in his wallet, according to the police report.

Police got a break in the case July 12 when Bradley Kruse allegedly tried to cash one of Pederson's checks at a downtown Reno Wells Fargo bank, the report states.

Kruse reportedly provided information that led to others in the Reno area who were involved in the extortion attempt. One suspect, Ryan Smith, told officers he met Bailey "through dope deals," the report indicates.

When Pederson was interviewed July 14 by detectives, he told officers he received several more calls from Bailey and unidentified men demanding cash.

"Pederson said he was eventually able to purchase his wallet back for $400," Detective Roya Mason wrote in his report.

Pederson told police he met with a black male named "Rob" twice at an Eldorado sports bar. "Rob" was given $200 each time for the return of Pederson's property, police reported.

The next day, according to the police report, Pederson drove to West Second Street where he picked up Bailey and brought her back to his room at the Silver Legacy. Her parents picked her up and took her to Fernley where they live, the report continues.

Reno police officer Roya Mason states in a report that Pederson did not want to pursue the case and especially did not want to get Bailey in trouble.

"Additionally, he was worried about unfavorable public perception and that his opponent in the judgeship race may use the case unfavorably," the report states.

Pederson was appointed as a third district judge in April by Gov. Kenny Guinn after he was one of three finalists chosen by the Nevada Judicial Selection Commission. The third district covers Churchill and Lyon counties. Pederson replaced District Court Judge Archie Blake, who retired in February.

He is running in the November election to retain his seat on the bench. Pederson is being challenged by Lyon County District Attorney Leon Aberasturi.

Reno police found Bailey and interviewed her on July 30. She reportedly told investigators she met Pederson when he was her attorney on a drug case in Lyon County. Pederson was in private practice in Yerington before being appointed to the bench.

"Ms. Bailey has a drug problem. In fact, she spent six months in jail on a theft offense, which is how she met Pederson. He was her attorney. Bailey stated that while in jail, Pederson visited her regularly. She got out of jail in February 2006 and returned to her drug habit," the police report states.

Bailey told police she ran into some drug acquaintances to whom she owed money in the bathroom at the Silver Legacy while on her date with Pederson. They threatened to damage Pederson's name unless Bailey paid a $400 drug debt, the police report states.

"Bailey said that she was scared, didn't know what to do, and didn't want to tell Pederson. Instead, Bailey decided to steal the judges (sic) wallet and checkbook while he was taking a shower," the report states.

She told police she didn't remember how she got home that night, and told police she didn't know details about how Pederson's property was returned.

"Bailey said she was very sorry for what happened and that Pederson was angry with her. However, they still remain fairly close although they are not currently dating. (She said she had campaigned with him the weekend prior)," Officer Mason wrote after interviewing Bailey.

Pederson said the whole situation is embarrassing. He said he has known Bailey's family for years. He said he did visit her in jail and she passed out campaign flyers for him the weekend after the Reno incident. He said he wasn't aware Bailey was allegedly using drugs and hanging out with other drug users until later.

"I think she's a mixed-up gal," Pederson said. "I didn't know she was a doper at the time. I asked her if she was involved in any drugs and she said no."

The police report written by Officer Mason states Pederson specifically asked that Bailey not be prosecuted for her role in the alleged crime.

"Mr. Pederson had related to me that he did not feel Ms. Bailey should be held accountable for her actions," the officer wrote.

The report states two male suspects linked to the extortion case were arrested and charged with crimes that surfaced during the investigation into Pederson's case.

"Mr. Pederson understood that without charging Ms. Bailey, it would be difficult charging any of the other parties with the acts that occurred subsequent to her theft," the officer wrote.

Pederson agreed he asked that Bailey not be charged with any crime.

"I felt she should not be prosecuted. It was a petty theft," he said. "I think she was held accountable because of the embarrassment she went through."

Washoe County Assistant District Attorney John Helzer said the man caught trying to cash one of Pederson's check pleaded guilty to burglary and is set for sentencing Tuesday. Another player in the case pleaded guilty to drug trafficking in an unrelated case, which carries a mandatory prison term, Helzer added.

He said Bailey was not prosecuted because Pederson indicated he did not want charges filed.

"I'm not starting a case with a defendant who doesn't think someone should be held accountable for her actions," said Helzer. "I'll jump a little hurdle for a case but I'm not going to get the snot kicked out of me for someone who is not going to cooperate."

Judges are bound by a set or rules known as Judicial Canons.

"A judge must expect to be the subject of constant public scrutiny," Canon 2 states. "A judge must, therefore, accept restrictions on the judge's conduct that might be viewed as burdensome by the ordinary citizen and should do so freely and willingly."

The rules apply to a judge's professional and personal conduct.

Pederson said he wishes the incident hadn't happened but believes it is being used against him politically.

"It's an embarrassing situation and I wish it hadn't happened. We started out with a dinner and ended up with something else," he said.

Marlene Garcia can be contacted at mgarcia@lahontanvalleynews.com