Prosecutors present Whittemore case to grand jury
Prosecutors began presenting their criminal case against longtime lobbyist Harvey Whittemore to a federal grand jury in Reno on Wednesday.
The FBI has been investigating allegations the political power broker funneled tens of thousands of dollars in illegal campaign contributions to Nevada federal races. He is alleged to have used his employees and family members as conduits to help him distribute campaign money as far back as 2007.
Contributions made on one date — March 31, 2007 — to the re-election campaign of U.S. Sen. Harry Reid, D-Nev., have attracted the interest of FBI agents, the Las Vegas Review-Journal first reported.
On that day, the Senate majority leader’s campaign received at least $133,400 from 29 Whittemore associates, including his family members and his employees and their spouses, most of whom each contributed the maximum allowed $4,600, according to federal campaign reports.
The Reno Gazette-Journal reported on Wednesday that about a dozen witnesses appeared before the grand jury.
Most of the witnesses wouldn’t comment or provide their names on the way out of the grand jury room.
Two of the witnesses were Cathy Dangler, a special events promoter, and her husband, J.L. “Skylo” Dangler, the former president of a real estate company once linked to Whittemore, the newspaper reported. The Danglers were among those who contributed to Reid’s campaign on March 31, 2007. The couple donated $9,200.
Attempts by the Review-Journal to contact Cathy Dangler were unsuccessful. Neither her husband nor her Reno lawyer, Doug Fermoile, returned calls.
Conduit contributions are illegal under federal law and viewed as a way to skirt campaign finance statutes that put ceilings on how much individuals can contribute to candidates.
FBI agents served grand jury subpoenas Feb. 9 on Whittemore business associates, family members and employees in Northern and Southern Nevada. More than two dozen witnesses have been summoned to the grand jury, sources said.
Allegations surfaced that employees of Whittemore’s former development company, Wingfield Nevada Group Holding Co., and its subsidiaries contributed to the campaigns and were reimbursed by Whittemore with company money the same day or the next day.
The grand jury subpoenas sought documents related to campaign contributions they made and copies of checks to and from the politically connected lobbyist dating to January 2007.
Whittemore, who has many friends in Nevada’s political hierarchy, has denied wrongdoing.
Elizabeth Trosper, a spokeswoman for Whittemore, his defense lawyer Dominic Gentile and his law firm, Gordon Silver, declined to comment on Wednesday.
First Assistant U.S. Attorney Steven Myhre, who questioned the witnesses behind closed doors, also declined comment. The Review-Journal has previously reported that Myhre’s name appeared on the grand jury subpoenas.
A conduit campaign scheme involving current and former top officials with the Fiesta Bowl in Arizona is providing insight into how the Whittemore investigation may be unfolding in Nevada.
Natalie Wisneski, the Fiesta Bowl’s former chief operating officer, is set to plead guilty in the scheme in an Arizona federal court on March 14.
She is alleged to have used her position to reimburse Fiesta Bowl employees for contributions made to state and federal candidates in Arizona .
The bowl’s former CEO, John Junker, and two others pleaded guilty to state charges in the scheme last week.
Wisneski is charged in a federal indictment with making campaign contributions in the name of another and causing false statements to be made to the Federal Election Commission.
The charges fall under the Federal Election Campaign Act, which regulates the financial activities of candidates for federal office and the political action committees on their behalf.
Federal prosecutors here are likely looking at similar charges in the Whittemore investigation.
The Associated Press contributed to this report. Contact Francis McCabe at fmccabe@reviewjournal.com or 702-380-1039. Contact reporter Jeff German at jgerman@reviewjournal.com or 702-380-8135.
