Strong Point Inc. Drops Effort to Buy Mustang Ranch Brothel

Strong Point Inc. has ended its 23-month effort to buy the Mustang Ranch, a Nevada brothel owned by Joe and Sally Conforte.

The Irvine company had been unable to raise the $18 million purchase price and in January it lost its exclusive bid to buy the brothel near Reno. John Davis, Strong Point president, said Wednesday that the company could not get financing because he could not get accurate financial data from the Confortes.

The company also may lose its $350,000 down payment. Davis said he expects the money to be returned, but Joe Conforte said Tuesday that he plans to use the money to help pay the $12 million he and his wife owe the Internal Revenue Service.

Shareholders, who saw the stock nearly triple in value when the Mustang Ranch purchase was announced, are scheduled to meet in Irvine July 27.

Strong Point, the only publicly traded company in the bordello business, was sued in April by the former owners of Sue’s Bar & Bordello in Elko over its failure to pay them the $1-million purchase price for the business, acquired last year. Strong Point alleged that the former owners failed to disclose that they did not hold legal title to the land.