FBI investigates campaign spending by Whittemore
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.”
Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135. Contact Francis McCabe at fmccabe@reviewjournal.com or 702-380-1039.
