McDonald accused of illicit business activities

Tuesday, Nov. 30, 1999 | 11:05 a.m.

CARSON CITY -- The state Private investigator's Licensing Board said today it has opened a probe into a complaint that Las Vegas City Councilman Michael McDonald is conducting unlicensed private detective activities in Clark County.

Carol Hanna, executive director of the board, said an investigator would meet with McDonald next week in Las Vegas to get his side of the story. And the investigator will then meet with former Las Vegas Councilman Steve Miller who filed the request for an inquiry.

Miller, who lost in two elections to McDonald, has alleged the councilman may be illegally brokering business to private detectives in Southern Nevada.

Hanna said she has sent a letter to McDonald advising him of the complaint and asking him to spell out his activities. The investigation is expected to take several weeks, said Hanna, who added the results would be turned over to a deputy attorney general for legal advice.

She said the board can issue a "cease and desist" order to McDonald if it finds unauthorized business being conducted. It also has the power to impose fines ranging from $2,500 for a first offense up to $10,000 for repeat violation.

Any disciplinary action can be appealed to the investigator's licensing board.

Miller asked the board to investigate the activities of McDonald, based on a story in the Las Vegas Sun, which said McDonald has a business license for a management/marketing service, Alpha-Omega Strategies. The story said this company was essentially a private investigative business. But McDonald doesn't have a state license.

McDonald said in the newspaper article that if somebody brings in a case, he tells the individual the name of a private investigator to contact or advises the person to talk to an attorney.

Miller, in his letter to the board, said, "These statements clearly indicate that the councilman is taking advantage of his official office to broker business for private investigators in Las Vegas. Therefore, I make this request for your department to investigate his activities."

Earlier this month the state Ethics Commission dismissed a complaint filed by Miller against McDonald. Miller suggested McDonald may have been in a conflict of interest situation by voting on renewal of the garbage franchise of Silver State Disposal because of campaign contributions and his friendship with company officials.

Last year, the ethics commission also dismissed a complaint filed by Miller against McDonald, questioning the councilman's vote in approving plans for a restaurant.