3 from NV tied to motorcycle gang charged with fraud - FOX5 Vegas - KVVU

3 from NV tied to motorcycle gang charged with fraud

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From left to right, Michael Hughes, Chad Kruger and Steven Shaw. (LVMPD) From left to right, Michael Hughes, Chad Kruger and Steven Shaw. (LVMPD)
LAS VEGAS (FOX5) -

Three southern Nevada men with ties to the Vagos Motorcycle Club face charges of insurance fraud, theft and conspiracy that came as a result of a four-year, multi-state investigation.

The office of Nevada Attorney General Catherine Cortez Masto announced Wednesday the charges for Michael Joseph Hughes, 40, of Las Vegas; Steven Martin Shaw, 39, of Las Vegas; and Chad Gary Kruger, 46, of Henderson.

Masto's office said the three were alleged to have roles in a scheme in which Hughes would have his motorcycle disappear in order to report it stolen. An indictment said the three intended for Hughes to collect insurance money for his stolen Suzuki sports bike and purchase a Harley Davidson in order to join a motorcycle gang tied to the Vagos club.

According to the indictment, Kruger and Shaw approached an undercover officer about storing the bike in October 2012. Once the bike was stored with the officer, the indictment said, Hughes reported it missing to his insurance company.

As a result of the bike not being recovered, Hughes collected more than $6,600 to purchase the Harley, the indictment said.

Masto's office listed the charges as insurance fraud committed to promote activities of a criminal gang and theft committed to promote activities of a criminal gang.

The charges were a result of a Las Vegas Metro police investigation dubbed "Operation Pure Luck" that started in 2009. As described by Metro, the operation involved the infiltration of the Vagos gang by federal agents.

Earlier this year, Metro announced 32 people were charged in the investigation, with 25 detained all on June 27.

The charges for those arrested include federal and state violations, including firearms, narcotics, conspiracy to interfere with commerce by extortion, conspiracy to distribute a controlled substance, theft, obtaining money under false pretenses with gang enhancements and battery with substantial bodily harm.

Hughes is already facing federal charges for drug trafficking.

Shaw, Kruger and Hughes were already detained.

Stay tuned to FOX5 for the latest on this developing.

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