Whittemore indicted on conduit contribution charges, lying to FBI

By Wednesday, June 6, 2012 | 2:45 p.m.

JUNE 6 UPDATE: Whittemore has been indicted on charges relating to these contributions -- I have posted the indictment at right.

UPDATED: Based on this article that posted late this afternoon on the RJ's web site, which said the total was "at least $142,600," I decided to do a little bit more research to see what else I could find. It still appears to me that the RJ has yet to actually look at these reports, as evidenced by the sentence that says the "number has ballooned from the original $115,000 figure the Review-Journal reported," which, as I pointed out below, was obviously wrong from even a cursory examination and just given to the newspaper, which did not bother to check. Upon further review, I found I had missed a couple of spouses, but I also decided to research some other names and found out the total is not $142,600," including the Harvey and Annette contributions,as the RJ just reported, but at least $147,200. That is, I can account for that much -- I assume the RJ simply was spoon-fed a new number after I posted this originally. The RJ also has yet to show how obvious it must have been to Harry Reid's campaign folks -- the $147,200 is just under 70 percent of the total reported that one day -- 64 out of 104 contributions. I have left the rest of the blog post below intact, except for updating the list, explaining who I added and amending the orginal numbers.

So how obvious is it that Harvey Whittemore bundled six figures to Senate Majority Leader Harry Reid on one March day in 2007?

Very.

The Las Vegas Review-Journal first reported that on March 31, 2007 – the last day of first-quarter reporting – Reid received a lot of money from Whittemore, his family and employees. Indeed, the RJ has pasted the identical paragraph (lazy) into its stories this week and last:

“On that day, Reid's campaign received at least $115,000 from about two dozen Whittemore employees and their family members, most of whom each contributed the maximum allowed $4,600, according to federal campaign reports. The employees also included Whittemore family members.”

It doesn’t appear the RJ reporters made any effort to really find out how much money (maybe they just accepted the estimate from a source?) or put it in context, so I decided to look for myself. Here’s what I found, with some help from CQMoneyLine:

On that day, Reid reported the biggest single-day haul of the two-year cycle: $216,000. More than half of the money -- $124,200 (now $147,200), not $115,000 – came from donors I can tie to Whittemore. There were 54 (now 64) (out of 104 total) contributions – which I have listed below – from family, employees and spouses.

It is inconceivable that someone in Reidworld did not know what was happening – that is, that Whittemore had bundled all that money for him. But bundling is not illegal. What would be is if Whittemore told these people to contribute and reimbursed them, and easily proven if it were traceable through company checks. And the Reid folks surely would argue they had no idea Whittemore was providing illegal conduit contributions if -- and a big IF -- that is what is discovered.

Would one of the smartest men in Nevada have been that dumb? We will find out.

But I wonder if Reid, who was aware at least of the volume, has returned all of these checks. His office won’t say.

Below is the list from March 31, 2007. Wingfield, Red Hawk and Coyote Springs are Whittemore companies, and Natalie Okeson is his daughter. (ADDED: Carli West was general counsel for the Whittemore-Peterson Institute. Pete Kinne is her husband. Kristin Faulstitch married Robert Whittemore. I somehow missed the Danglers last time.) The rest should be self-explanatory.

DANGLER, CATHY SELF/SPECIAL EVENTS COORDINATOR $2,300

DANGLER, CATHY SELF/SPECIAL EVENTS COORDINATOR $2,300

DANGLER, J L S WINGFIELD REALTY/PRESIDENT, REAL ES $2,300

DANGLER, J L S WINGFIELD REALTY/PRESIDENT, REAL ES $2,300

DOYLE, MICKY RENO FAMILY CHIROPRACTIC/CHIROPRACT $2,300

DOYLE, MICKY RENO FAMILY CHIROPRACTIC/CHIROPRACT $2,300

DOYLE, ROXANNE HARVEY WHITTEMORE, ATTORNEY AT LAW/ $2,300

DOYLE, ROXANNE HARVEY WHITTEMORE, ATTORNEY AT LAW/ $2,300

ENGLAND, JAMES COYOTE SPRINGS INVESTMENT/CFO $2,300

ENGLAND, JAMES COYOTE SPRINGS INVESTMENT/CFO $2,300

FAULSTICH, KRISTIN HOMEMAKER/HOMEMAKER $2,300

FAULSTICH, KRISTIN HOMEMAKER/HOMEMAKER $2,300

HARRIS, JAMES RESORT AT RED HAWK/GENERAL MANAGER $2,300

HARRIS, JAMES RESORT AT RED HAWK/GENERAL MANAGER $2,300

HARRIS, RENEE HOMEMAKER/HOMEMAKER $2,300

HARRIS, RENEE HOMEMAKER/HOMEMAKER $2,300

HILLERBY, CARRIE HOMEMAKER/HOMEMAKER $2,300

HILLERBY, CARRIE HOMEMAKER/HOMEMAKER $2,300

HILLERBY, MICHAEL WINGFIELD NEVADA GROUP/EXECUTIVE VP $2,300

HILLERBY, MICHAEL WINGFIELD NEVADA GROUP/EXECUTIVE VP $2,300

KINGSBURY, BRANDON RESORT AT RED HAWK/MANAGER $2,300

KINGSBURY, BRANDON RESORT AT RED HAWK/MANAGER $2,300

KINGSBURY, MAGGIE STUDENT (OVER AGE 18)/STUDENT $2,300

KINGSBURY, MAGGIE STUDENT (OVER AGE 18)/STUDENT $2,300

KINNE, PETE WASHOE COUNTY/APPRAISER $2,300

KINNE, PETE WASHOE COUNTY/APPRAISER $2,300

HARRIS, JAMES RESORT AT RED HAWK/GENERAL MANAGER $2,300

KINNE, PETE WASHOE COUNTY/APPRAISER $2,300

MAMER, BRADLEY COYOTE SPRINGS INVESTMENT/CEO $2,300

MAMER, BRADLEY COYOTE SPRINGS INVESTMENT/CEO $2,300

MAMER, CHRISTINA WHITTEMORE-SEENO COMPANY/VP $2,300

MAMER, CHRISTINA WHITTEMORE-SEENO COMPANY/VP $2,300

OKESON, NATALIE STUDENT/STUDENT $2,300

OKESON, NATALIE STUDENT/STUDENT $2,300

OKESON, TODD TOPO BASKETBALL CLUB/ $2,300

OKESON, TODD TOPO BASKETBALL CLUB/ $2,300

REYNOLDS, JEANETTE REED HIGH SCHOOL/LIBRARIAN $2,300

REYNOLDS, JEANETTE REED HIGH SCHOOL/LIBRARIAN $2,300

REYNOLDS, TERRY WINGFIELD NEVADA GROUP/VICE PRESIDENT $2,300

REYNOLDS, TERRY WINGFIELD NEVADA GROUP/VICE PRESIDENT $2,300

WHELLAMS, JANETTE SELF/NUTRITIONIST $2,300

WHELLAMS, JANETTE SELF/NUTRITIONIST $2,300

WHELLAMS, JOSHUA COYOTE SPRINGS/SENIOR VP CORPORATE $2,300

WHELLAMS, JOSHUA COYOTE SPRINGS/SENIOR VP CORPORATE $2,300

WHITTEMORE, ALICIA HOMEMAKER/HOMEMAKER $2,300

WHITTEMORE, ALICIA HOMEMAKER/HOMEMAKER $2,300

WHITTEMORE, ANNETTE WHITTEMORE-PETERSON INSTITUTE/CHAIR $2,300

WHITTEMORE, ANNETTE WHITTEMORE-PETERSON INSTITUTE/CHAIR $2,300

WHITTEMORE, CHASE STUDENT/STUDENT $2,300

WHITTEMORE, CHASE STUDENT/STUDENT $2,300

WHITTEMORE, DJ WESTERN NEVADA COMMUNITY COLLEGE/HE $2,300

WHITTEMORE, DJ WESTERN NEVADA COMMUNITY COLLEGE/HE $2,300

WHITTEMORE, ELLEN LIONEL SAWYER COLLINS/ATTORNEY $2,300

WHITTEMORE, ELLEN LIONEL SAWYER COLLINS/ATTORNEY $2,300

WHITTEMORE, F HARVEY LIONEL, SAWYER & COLLINS/ATTORNEY $2,300

WHITTEMORE, F HARVEY LIONEL, SAWYER & COLLINS/ATTORNEY $2,300

WHITTEMORE, ROBERT VOCATIONAL SERVICES/PSYCHOLOGIST $2,300

WHITTEMORE, ROBERT WINGFIELD NEVADA GROUP/DEVELOPER $2,300

WHITTEMORE, ROBERT VOCATIONAL SERVICES/PSYCHOLOGIST $2,300

WHITTEMORE, ROBERT WINGFIELD NEVADA GROUP/DEVELOPER $2,300

WHITTEMORE, SYBIL HOMEMAKER/HOMEMAKER $2,300

WHITTEMORE, SYBIL HOMEMAKER/HOMEMAKER $2,300

WEST, CARLI TULFY RANCHES LLC/ASSISTANT GENERAL $2,300

WEST, CARLI TULFY RANCHES LLC/ASSISTANT GENERAL $2,300

WILSON, JENNY WINGFIELD REALTY/REAL ESTATE ASSIST $2,300

WILSON, JENNY WINGFIELD REALTY/REAL ESTATE ASSIST $2,300




http://www.lasvegassun.com/blogs/ralstons-flash/2012/jun/06/one-day-reid-reported-124200-contributions-whittem/


Grand jury indicts Nev. developer Whittemore

The Associated Press

Wednesday, June 6, 2012 | 6:01 p.m.

A federal grand jury on Wednesday indicted a former developer and powerbroker in Nevada politics with strong ties to U.S. Senate Majority Leader Harry Reid on criminal charges involving campaign contributions.

The indictment accuses Harvey Whittemore of devising a scheme to solicit campaign contributions from family members and employees in 2007 and skirt federal election law limits by reimbursing them.

Neither the indictment nor prosecutors identified the recipient of the contributions that sparked the federal indictment, but suspicion has swirled in Nevada that it was Reid.

Whittemore has donated thousands of dollars to Reid, Republican Sen. Dean Heller and Democratic Rep. Shelley Berkley, but Reid got the bulk of the donations: more than $100,000 in a single day in March 2007 from Whittemore, family members and employees of his former company, Wingfield Nevada Group Holding Co.

In March, as it became clear Whittemore was the target of a federal investigation, all three politicians said they would donate his contributions to charity. The indictment says Whittemore concealed his scheme from the elected official, and a spokeswoman for the Justice Department says that person is "a potential witness," not a defendant.

Reid had no knowledge that Whittemore's contributions to him or other federal officials were allegedly unlawful, spokeswoman Kristen Orthman said Wednesday in a statement.

"Sen. Reid believes that this is a very serious matter, and he has full confidence in the American justice system," Orthman said.

Whittemore, 55, of Reno, was charged with one count each of making excessive campaign contributions and making contributions in the names of others, and two counts of making false statements to a federal agency. Combined, the charges could get him 20 years in federal prison and $1 million in fines.

Dominic Gentile, Whittemore's lawyer, said in statement to The Associated Press that Whittemore "always acted in a law abiding manner, well within his constitutional rights and with complete transparency."

"We respectfully, but strongly, disagree with the government's interpretation of both the facts and law applicable to this case as well as the decision to indict Mr. Whittemore," the statement said.

A judge signed a warrant for his arrest, but authorities said they expected he would surrender for a court appearance Thursday in U.S. District Court in Reno.

Whittemore was once a powerful figure in Nevada politics and legal circles. As a lobbyist, he represented big casino clients and tobacco companies, and was a partner in the Lionel, Sawyer & Collins law firm. He now has a small private office in Reno.

He was also a developer with big dreams for a sprawling Coyote Springs master-planned community about 60 miles north of Las Vegas. The plan was to build 160,000 homes and a Jack Nicklaus Signature-designed golf course on 43,000 acres off U.S. Highway 93 straddling the Clark and Lincoln county line.

In 2004, Congress agreed to accept $10.4 million from Whittemore to move a federal power line easement across U.S. 93 to allow the development to proceed. But the development has been in limbo since the economy soured and Nevada's once booming housing market imploded.

Prosecutors allege Whittemore met with the unnamed politician in February 2007 and agreed to try to raise $150,000 for the official's campaign committee.

Reid had become the Senate majority leader several weeks before, after Democrats won the upper chamber majority in 2006.

The following month, Whittemore solicited employees, family members and their spouses to make maximum campaign donations and reimbursed them with personal checks and wire transfers, according to the indictment.

On March 28, 2007, authorities allege that a Whittemore employee transmitted $138,000 in contributions to the elected official's campaign committee. Two weeks later, the campaign committee "unknowingly filed false reports with the FEC stating that the conduits had made contributions, when in fact, Whittemore had made them," prosecutors said.

Prosecutors also allege Whittemore tried to conceal some of the reimbursements by telling employees they were bonuses, and at times gave them back more than their original campaign donation.

Federal law in 2007 capped individual campaign contributions to a candidate at $4,600. The law also prohibits making contributions in another person's name to hide the identity of the true donor.

The investigation into Whittemore's campaign contributions began after his former business partners, Thomas Seeno and Albert Seeno Jr., filed a civil lawsuit against him in state court in Las Vegas accusing him of misappropriating millions from Wingfield Nevada Group to support a lavish lifestyle including private jet flights, home improvement projects and entertainment.

Whittemore responded with a civil lawsuit in federal court, saying the Seenos were falsely accusing him of fraud and embezzlement.

http://www.lasvegassun.com/news/2012/jun/06/nv-developer-contributions-2nd-ld-writethru/


From the perspective of the public, the Democrat's represent the "lesser evil" and supposedly represent the interests of the environment and working people. However when Democrats like Sen. Harry Reid become entrenched in their local power structures they no longer work for the people or the environment, only for their lobbyists. It is no coincidence that Harry Reid's son Rory Reid is a lawyer who is employed by Whittemore, and this may influence the choices made by father Reid when it comes to protecting the business interests of his son's employer.

Senator Harry Reid's support of the SNWA's $15 billion pipeline from the rural districts of the north are an indication that he favors his lobbyist friend Whittemore and Wingfield's Coyote Springs development over the needs of the Goshute, ranchers and spring-fed ecosystems of the north. This favoritism of mega-developers with fat bank accounts shows that Senator Reid is unable to perform the duties of his job as Nevada Senator which is to support ALL districts of Nevada without prejudice.

Senator Harry Reid's antics in Nevada with Whittemore are a perfect example of why our two party system is completely broken. If Obama wants to win in 2012, his first step should be to publically distance himself from corrupt and deceptive Democrats like Harry Reid and John Edwards. Protecting deceivers like Reid within the Democrat party will not be seen as an advantage come election time!


Another example of "Heavy-Handed" Harry Reid going after Nevada's legal brothels;

Reid attacked for prostitution speech
Posted on23 February 2011.

By MARK WAITE

PVT

U.S. Sen. Harry Reid, D-Nev., appeared to pause for a moment during his speech to the Nevada Legislature Tuesday after he said the state should outlaw prostitution, as if to anticipate some applause.

There was none. There wasn’t any applause either from officials representing Nye County or a prominent brothel owner who commented on the senator’s remarks to the Pahrump Valley Times.

Nearing the end of his almost half-hour speech, Reid said he met recently with a group of businessmen who run data centers for technology companies. They visited Storey County to see about opening a facility there. Reid said Storey County is home to the Tahoe-Reno Industrial Center, which he called one of the largest of its kind in the country.

“One of the businessmen in that meeting told me he simply couldn’t believe that one of the biggest businesses in the county he was considering for his new home is legal prostitution. I’ve talked to families who feel the same way — parents who don’t want their children to look out of a school bus and see a brothel, or to live in a state with the wrong kind of red lights,” Reid said.

“Nevada needs to be known as the first place for innovation and investment, not as the last place where prostitution is still legal, ” he said to some light applause from legislators. “When the nation thinks about Nevada, it should think about the world’s newest ideas and newest careers, not about its oldest profession.”

“We should do everything we can to make sure the world holds Nevada in the same high regard you and I do. If we want to attract business to Nevada that puts people back to work, the time has come to outlaw prostitution,” Reid said.

That remark met with silence, too.

State Sen. Mike McGinness, R-Fallon, the Senate Minority Leader, said there hasn’t been any legislation introduced this session to outlaw prostitution in Nevada. During the last session there was an attempt to put a state tax on the brothels, he said.

“I think that’s something that should be left to the local jurisdictions, like it is now,” McGinness said.

Nevada District 36 Assemblyman Ed Goedhart, R-Amargosa Valley said Reid should concentrate on the problems in Washington, D.C. including a federal budget that’s out of control.

“At least the women who work in Nevada’s legal brothels are paid for their work. The citizens of Nevada have been sending money to Washington, D.C. ever since Sen. Reid was elected majority leader of the U.S. Senate. Sen. Reid is hypocritical to suggest we outlaw legal brothels, he has been using Nevada as a brothel since he was elected majority leader; the only difference is that we haven’t received any compensation in return,” Goedhart said.

Nye County Commission Chairman Gary Hollis referred requests for comment to County Manager Rick Osborne.

“Last year the brothels brought in $118,125 from the brothel owners and an additional $45,000 from the workers. I think it needs to be stated that these are jobs for these people and it is also business for the brothel owners. In these times of difficult economic conditions, I find it insane to advocate for running businesses that are causing no trouble here in Nye County anyway out of business,” Osborne said.

The county manager noted when there were concerns over having to eliminate the veterans’ service office, the brothels agreed to increase quarterly prostitute licensing fees from $62 to $125. Osborne said $60,000 from the brothel licensing fees already goes to the Pahrump Valley ambulance service.

“I think it’s interesting the senator takes time off from Washington where he’s got problems to deal with, to come out here and talk about moral issues,” Osborne said.

Nye County Sheriff Tony DeMeo said, “I’ve been here 12 years, I don’t see the public outcry for banning legal prostitution in not only Nye County but the rest of the state where it’s legal in 10 counties.”

There’s nothing to prevent counties from putting it on the ballot, DeMeo said.

In 2000, Citizens Against Prostitution circulated a petition signed by Darrin Tuck, Deborah Marquez, David Lytle and Susan Lytle, asking for a ballot question to make prostitution illegal in Nye County. It didn’t acquire many signatures.

In 2004, when there was an outcry after brothel owner Joe Richards opened The Kingdom Gentleman’s Club in Pahrump, former county commissioner Henry Neth put an item on the county commission agenda asking the public to be allowed to vote on prostitution. But when it came up for a county commission vote in July 2004, only former county commissioners Candice Trummell and Patricia Cox voiced support for it.

Lincoln County outlawed prostitution in the 1960s after a referendum on the ballot sponsored by members of the Church of Jesus Christ of Latter Day Saints, state archivist Guy Rocha said. In Washoe, Douglas and Clark County, it’s illegal by county ordinance, he said.

Ironically, Clark County closed down its last brothels as a public nuisance in Searchlight in the 1950s, Rocha said.

Dennis Hof, owner of the MoonLite Bunny Ranch near Carson City, said he is now second guessing whether to spend $2 million to build his Love Ranch in Crystal.

“I can’t spend a couple million dollars out there and wonder if I’ll be in business in five or six months. It’s a real problem and I hope the constituents in Nye County will step up and talk to their legislators,” he said.

Hof said he listened to Reid’s speech at the state capitol and was the only one frisked for weapons upon entering the chambers. He worries the new crop of freshman legislators will heed the call.

“There was no short term answer what we’re going to do to help Nye County. That’s the problem. Why did he go after the brothels? Because it’s a smokescreen for his lack of performance. Nobody went after him afterwards and said why aren’t we getting more money from gaming? Why aren’t we getting more money from the mining industry?” Hof said.

“One company in 25 years said they’re not coming because of the brothels. The reasons they don’t want to come to Nevada is gaming; they’re not going to come because of gaming, 24-hour alcohol, a shortage of water and an uneducated work force,” he said.

Hof charged it was an attempt to punish the rural counties who didn’t support Reid in the last election. Hof said in Lyon County, brothels fund the medical center; the doctor in Wells said he wouldn’t be there if not for the brothels.

Hof said the problem is illegal prostitution in Las Vegas where there are a reported 32,000 prostitutes. He said Las Vegas Metro just arrested its 400th prostitute with HIV.



http://pvtimes.com/news/reid-attacked-for-prostitution-speech/





Apparently Senator Harry Reid feels that it is fine to create an ecological catastrophe in the north to favor developers like Whittemore and to allow prostitutes banned from legal brothels to die of STDs as they often do in Las Vegas.

This is our democracy's version of "lesser evil"?

With friends like Harry Reid, who needs enemies?