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Reid says Senate candidate misled him, questions fitness
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Byron Georgiou
Senate hopeful
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STEPHENS WASHINGTON BUREAU
Updated: Jun. 22, 2011 | 7:07 p.m.
WASHINGTON -- Simmering tension in the still-young 2012 Nevada race for U.S. Senate burst into the open Tuesday when Sen. Harry Reid unloaded on upstart candidate Byron Georgiou, a Democratic lawyer and entrepreneur from Las Vegas.
Reid said he regretted placing Georgiou on the high-level Financial Crisis Inquiry Commission two years ago, charging he was misled about the businessman's credentials. Reid said that should raise questions about the candidate's fitness for office.
Georgiou placed Reid's comments alongside unflattering Las Vegas media reports in the past week on his financial history. Georgiou said they were "falsehoods" and part of an effort to drive him out of the race.
The episode offered a glimpse into the high-stakes 2012 race for Senate and the shifted relationship between Reid, the Senate majority leader, and Georgiou, a major Democratic donor who was given a prestigious post and then turned around on the hand that appointed him.
Georgiou, a millionaire who made a name as one of the attorneys who recovered $7.5 billion for duped investors in Enron Corp., has contributed at least $227,000 to Democratic candidates over the past decade and $4,800 to Reid in June 2009, according to the Federal Election Commission.
But Reid distanced himself from Georgiou after the entrepreneur, who moved to Las Vegas from California in 2005, announced in March that he would run for the U.S. Senate, a post for which Reid favors Rep. Shelley Berkley.
On April 15, when Berkley announced her candidacy, Reid said Georgiou "stands no chance."
Georgiou began his campaign with $1.08 million, including $500,000 he loaned from personal funds. Berkley had $1.5 million as of March 31.
Establishment Democrats who are behind Berkley would rather not have her involved in an expensive primary and would rather focus on the general election against Sen. Dean Heller, who, they presume, will be the Republican candidate.
Georgiou has refused to drop out.
Reid's comments came on the heels of articles in the Las Vegas Sun over the past week questioning Georgiou's financial background and reporting that Reid was regretting Georgiou's appointment.
According to one report, Georgiou has been hit with tax liens in California, has been in court to settle sizable debts and has had property seized. Most of the matters were resolved, according to the report.
In a statement this week, Georgiou offered explanations and disputed the characterization that his house was not in order. He said the reports were "falsehoods manufactured by my opponents" after he refused to step aside for Berkley.
"I have been active in politics, as an entrepreneur, and as an attorney, for almost forty years," Georgiou said in a statement. "In this time I've succeeded and lost in politics, built businesses that failed and succeeded, and won and lost court cases."
When asked about Georgiou in a meeting with reporters Tuesday, Reid's comments were strong. He said he had regrets about Georgiou's appointment and questions about the candidate's fitness.
"I think it has something to do with running for the Senate because it dramatizes how he misled me and everyone," the senator said.
Reid said he had been unaware that Georgiou had run for Congress twice before, losing California races in 1990 and 1992.
Also, Reid said, "he didn't bother to tell me about all lawsuits that have been filed against him. He didn't tell me about the liens on properties he had."
"So yeah, I wish I had not done it," Reid said about the appointment.
Jennifer Duffy, an analyst with the Cook Political Report who follows the Senate, said Reid's comments appear to raise questions as to how closely he had vetted Georgiou before naming him to a high-level commission.
"Apparently Reid took everything that Georgiou said at his word and never did any vetting," Duffy said. "Now, given the importance placed on that panel, I find that a little odd."
Neither Reid's staff nor Georgiou's campaign could provide details as to what questions Reid asked and what information Georgiou gave as the Financial Crisis Inquiry Commission was being formed.
"The vetting process is not the same as it would be for a nomination," Reid spokesman Zac Petkanas said, referring to appointments that require Senate confirmation.
"The expectation was that candidates would respond honestly when asked if there were any issues that could potentially taint their ability to do their job," Petkanas said.
The 10-member Financial Crisis Inquiry Commission investigated the causes of the near-collapse of the nation's banking system in 2007 and 2008.
The commission's work was not without controversy, as its members split along partisan lines on their final report.
Georgiou was not available for comment and could not be reached. In his statement, he said he would continue his candidacy.
"Far from being intimidated, the false attacks aimed at my candidacy have only served to fortify my resolve to stand against the unholy alliance between Washington and Wall Street that wrecked our economy and far too many lives, and strengthened my commitment to run for the U.S. Senate and win," he said.
Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760.
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@Edward.Smith-
Actually, no, I'm not "filthy rich". I started with the clothes on my back and a high school diploma. My innate talent, hard work, and persevering through years of rejection now allow me to live comfortably. Got a problem with any of that?
Why do we allow those in Congress to continually rip us off with their self promoted life time health care plan, life time long term health care, life time salaries, and numerous and unknown personal perks for life? They voted these life time benefits for themselves, not for the tax payers, yet they want to eliminate tax payer benefits of SS and Medicare without even considering touching theirs. I am yet to see one demonstrate true leadership and lead from the front. Show how to do it; tighten your belts before you strangle us to death. Lead from the front Senators and Congressmen/women. Show us how it is done and finally become real leaders; give up your gas guzzling buggies, your privileged parking, your fancy special barber/beauty shops in the capitol building. How about brown bagging it for lunch instead of a gourmet lunch with cloth table cloths and napkins every day? How about actually working a full 8 hour day 5 days a week? Spend your own money for air travel; give up on those expensive junkets to do nothing while enjoying vacation status. Lead from the front; show us how it is done!!
Green dragon another idiot the Republicans created labeling people, thaqt idiot Limbaugh, Hannity and the rest of that gang whe have no clue. The Republicans are a joke and the Democrats aren't much better, I'm looking for some progressives that stand up for the middle class. I guess you'te one of the filty rich.
Whiteberry what a fool you are that Reagan trickle down theory hasn't worked in the past and will not work ever. Can you provide any evidence that those programs have worked, Bush's programs shipped all the jobs overseas, lower taxes for the rich, I guess you are in that group, cut regulations so we get a oil spill like Alaska or Louisana, or God forbid a nuclear problem like Japan. If you Republicans continue your "no evidence" programs American will be worse off than during the depression. I believe you are totally confused like the rest of those tea party idiots that will go for any "shell game". What a fool.
Carpetbagger Greeks at least have nice luggage. How is that Chachas family doing up in Ely now that they have moved back to the ancestral home? Thought so. To think that this guy is so arrogant, after one APPOINTED position, to run against Senate Candidate Congresswoman Berkley is beyond the pale. He should return to California. Really.
Well, Byron, ole buddy, I guess you can surmise from this article/poll what's happening with your name recognition and general voter acceptance issues. However, I WOULD vote for you over Harry Reid and What's Her Name. But the biggest voter issues you face is the MACHINE that exists in Nevada with the blessing of the Secretary of State (Ross Miller). the Attorney General (Katy Cortez=Masto) and the Registrar of Voters in Clark County (I'm sick of his partisan politics).
Huntsman SR. gave $125,000+ to Dingy Harry campaign.
Slick Willy Clinton is "bundling" thousands for Huntsman Jr.
Huntsman will fizzle quickly - he is Odingo/Reid/Piglosi lite.
He is NO Ronaldus Magnus - just another dirt bag Democrap in sheep's clothing.
@Edward.Smith, what planet do you live on buddy? You are either joking or you are terribly confused. You say the Conservatives criticize Obama without offering any solutions. Apparently you hear only what you want to hear. If you actually listen to Conservatives you will hear them say cut spending, lower taxes, lower government regulation, and down size government as a whole. These are solutions that have worked in the past, but Liberals refuse to learn from history.
Yes, I care. Don't vote for a carpet bagger. Still fun to see a little payback to Reid though.
Does anyone care that Georgiou is clearly a carpetbagger with no real ties to Nevada?