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John L. Smith
Whittemore case could put state's cozy political machine on tilt
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Just a few years ago, high-flying lobbyist Harvey Whittemore and wife Annette left a vapor trail of status and success across the blue Nevada sky.
They had it all: wealth, property and, most important, connections at the highest level of government and business in the Silver State.
As Nevada's super lobbyist, Whittemore was known as the consummate parts man. If you needed to meet a U.S. senator or get things done in Carson City, high-flying Harvey was the man to see.
All that's gone forever, I suspect, now that Whittemore finds himself in the middle of an FBI criminal investigation into the propriety of his bundled campaign contributions, which found their way into the coffers of the state's biggest politicians, Senate Majority Leader Harry Reid among them. When the investigation surfaced, those politicians returned the donations and, I'll wager, deleted Whittemore's number from their speed dials.
While the federal investigation is understandably big news, Whittemore is also fighting a potentially devastating litigation filed Jan. 27 by James Pisanelli and Kent Robison on behalf of high-flying Harvey's extremely displeased development partners, brothers Thomas Seeno and Albert Seeno Jr., who own the Peppermill Casino in Reno.
Although Annette Whittemore has countersued the Seenos, accusing them of making threats and having organized crime connections, it's not the Seenos who risk losing their powerful political and business connections.
When Whittemore should have been minding their partnership in the Wingfield Nevada Group Holding Company LLC, the litigation alleges, he was making big political contributions and spending lavishly on himself, his family and his friends. The brothers said they began "noticing discrepancies in Wingfield's finances in May 2010.
"Specifically, there were concerns about amounts charged to Wingfield accounts, material items not disclosed, debts that were written off, undervaluation of liabilities and a number of other expenditures that had not received approval from nor been disclosed to the Seenos. The Seenos began investigating the discrepancies, but were thwarted by, among other things, incomplete or inaccurate accounting and business records and by a lack of cooperation by Whittemore."
The more the brothers "scratched the surface of Whittemore's fraud, deception and malfeasance," the more they became concerned, according to their lawsuit.
The allegations are ugly stuff. They make Whittemore appear he used the company for his personal ATM. Part of a long list of allegations: meals, entertainment, "misappropriation of Wingfield aircraft for improper and unauthorized personal, family and political use," and so on, including, "improper financial dealings involving corporate funds with Whittemore personal friends."
If Whittemore were just another corporate boss involved in a dispute with partners, it would hardly be newsworthy. But he isn't. He's high-flying Harvey, legend of the Legislature and friend of the rich and powerful.
The civil case could generate depositions so damaging they will make the criminal case seem like child's play. If the Seenos' allegations prove true, the fallout could put Nevada's cozy political machine on tilt.
On Tuesday, I tried to reach R&R Partners CEO Billy Vassiliadis to get his perspective on the Whittemore matter. Whittemore hired his close friend's public relations, lobbying and advertising firm on Wingfield's Coyote Springs development in Lincoln County. Soon after my request, the company released this statement:
"R&R Partners strongly resents any suggestion of irregularities or impropriety in our business relationship with the Wingfield Nevada Group (the Group) and finds offensive any attempt to include us in discussions of the dispute between the Group and Harvey Whittemore. For many years, we have provided a variety of services to Wingfield Nevada Group, which have included not only government and public affairs, but also advertising, branding, marketing and public relations. R&R Partners' name is synonymous with integrity and excellence. Should these baseless arguments persist, we will vigorously pursue all available options to protect our reputation."
Consider that knee-jerk response a shot across the bow of the press from Nevada's best-known political and advertising factory.
At the rate high-flying Harvey is falling, I'm starting to wonder: Will he take others down with him?
John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. Email him at Smith@reviewjournal.com or call 702-383-0295. He also blogs at lvrj.com/blogs/smith.
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Wow...R&R is a bit touchy and overly sensitive, aren't they. It is amazing the way everyone is running although many of your readers, especially those who have been here for at least 25 years, sit back in awe with all of the goings on. The only thing that changes are the faces.
The famous American lawyer Clarence Darrow once said: ""There is not justice in or out of court." He is right. When you see things like this happening more and more frequently with high profile figures, you can only come to one conclusion. Corruption at its best!
Sewer gas all around. Someone light the match and watch the fun..someone ambitious in the Justice department wants to send a message. Hope they succeed.
I hope he Takes down Harry.
Are Federal Judges & Senator "Cleanface" Harry Reid above the LAW? I must have missed the section that exempted judges & politicians from the laws that we little folk must adhere to. How long are we the people going to allow this corruption to continue, it is not acceptable...we deserve better. Are there any investigative reporters that are willing to investigate a story to the end anymore or is the media so controlled in this town & state that it is not even an option any longer? Corruption can be found at every single layer of government...Clark County Commissioners, CC Building Department, CC Fire Department, Nevada Contractors Board, NV OSHA, NV Medical Board, AG's Office, CC DA's Office, Federal Judges, State Judges, LVMPD, FBI, and the list goes on... This is all about the lack of ACCOUNTABILITY and also in many cases the lack of transparency. Senator Reid knows all about covering up things and he knows all about the "good old boy network." Lets face it, if true justice is served Senator Harry Reid and his minions will be put behind bars where they deserve to be, in my very humble opinion. This includes Sig Rogich and R&R partners, again in my humble opinion. And let me not leave out our ex-DA David Roger, who I know lied in court to Judge Eric Goodman on Harrah's behalf regarding their illegal remodels, which left thousands of Harrah's hotel rooms unsafe for the public to stay in for a period that spanned more than a decade! Of course, the asbestos exposure (by Harrah's Entertainment Inc.) to tens of thousands of hotel guests, hotel employees and construction workers added insult to injury. All of this was covered up by DA David Roger's office, and we all know why.
I'd love to see this investigation shake Jones-Vargas Law Firm's tree.
"R&R Partners' name is synonymous with integrity and excellence."
That statement makes my day.
Whittemore's use of Wingfield's assets to influence gov't officials was exactly what the Seeno Bro's wanted. When it got out of hand and/or began to become public, the Seeno Bro's suddenly discovered the improper uses?? Yeah, right!
Doesn't amount to a hill of beans to the voters of Nevada.
wonder how many Judges never returned money from him?