Date: February 9, 2012
Author: Jeff German
URL: http://www.lvrj.com/news/sources-fbi-targeting-whittemores-political-contributions-in-investigation-139063589.html
FBI investigates campaign spending by Whittemore
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FBI agents fanned out across the state Thursday serving grand jury
subpoenas in a criminal investigation into allegations longtime
political power broker Harvey Whittemore was involved in funneling
illegal campaign contributions to federal races in Nevada, the Las
Vegas Review-Journal has learned.
About two dozen FBI agents served subpoenas on Whittemore business
associates and others in some 30 locations in Northern and Southern
Nevada, sources said. Federal prosecutors expect to present evidence
in the investigation to a federal grand jury in Reno at the end of the
month, the sources said. Whittemore, once a high-powered lobbyist who
has many influential friends in Nevada politics, released a statement
Thursday through a spokeswoman for a Las Vegas law firm.
"Understandably, based on the reckless accusations made in the civil
lawsuit filed two weeks ago, law enforcement is requesting information
from knowledgeable parties," said the statement from Elizabeth
Trosper, spokeswoman for the Gordon Silver law firm. Trosper was
referring to a multimillion-dollar lawsuit filed against Whittemore by
former business partners alleging embezzlement.
An FBI spokesman declined to confirm or deny the existence of the
investigation. The names of the federal campaigns dragged into the
investigation could not be learned late Thursday. But records show
that over the past several years, Whittemore and his wife, Annette,
have contributed tens of thousands of dollars to Democratic candidates
seeking federal office, including Nevada Sen. Harry Reid, Nevada Rep.
Shelley Berkley and former Nevada Rep. Dina Titus. Whittemore and his
wife also have given thousands of dollars to Republicans, including
former Sen. John Ensign and his successor, Dean Heller.
The FBI investigation focuses on what are called "conduit
contributions," sources said. The FBI views conduit contributions as a
way to skirt federal campaign finance laws that put a ceiling on how
much an individual can contribute to a candidate. In such cases, the
individual will ask a family member, friend or employee to contribute
to a candidate's campaign and then reimburse that person with either
personal or corporate money. The Federal Election Commission allows
for an individual to contribute $2,500 per election to a candidate,
$30,800 annually to a national party committee, $10,000 annually to a
state, district and local party committee and $5,000 to any other
political committee per year. Under federal law, concealing the true
source of a campaign contribution above the limit is a felony, for
both the person asking for the contribution and the person being
reimbursed.
In recent weeks, Whittemore has been embroiled in a legal fight with
his former business partners over accusations he embezzled more than
$40 million from the Wingfield Nevada Group Co. The company is
controlled by Thomas Seeno and Albert Seeno Jr., two brothers who
partnered with Whittemore in his master-planned communities in
Northern and Southern Nevada, including the languishing Coyote Springs
community. The Seenos also have ownership stakes in the Peppermill
Resort Spa Casino in Washoe County.
The Seenos last month sued Whittemore in Clark County District Court,
accusing him of embezzling and misappropriating $44 million to, among
other things, support his lavish lifestyle and make political
contributions to myriad candidates. According to the lawsuit,
Whittemore used company assets "for the sole purposes of enhancing and
promoting Whittemore's financial condition and to further his standing
in the political community of Nevada."
Whittemore last week filed his own $60 million lawsuit in federal
court against the Seenos, accusing them of racketeering, extortion and
defrauding him through their partnership. FBI agents visited at least
one location Thursday, the Whittemore Peterson Institute, a Reno
research facility that focuses on neuro-immune diseases. The
Whittemore family created the institute after one of their children
who was diagnosed with chronic fatigue syndrome. Annette Whittemore,
in a brief conversation Thursday, confirmed that FBI agents had gone
to the Whittemore Peterson Institute and "interviewed" an employee
"involving a personal matter." When asked whether the interview was in
regards to a grand jury subpoena about campaign contribution
violations, she said, "I am not at liberty to discuss that." Annette
Whittemore would not identify the employee. Trosper said in her
statement: "To be clear, the Whittemore Peterson Institute has not
been raided and is cooperating in these inquiries."
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(c) 2012 Stephens Media LLC
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