Changes in ethics procedure disputed

Diana Sahagun

Thursday, Aug. 2, 2001 | 11:36 a.m.

Changes in the way the city of Las Vegas handles ethics complaints could unfairly benefit Michael Mack and Larry Brown, said an attorney whose client has lodged a complaint against the city councilmen.

Changes instituted by the City Council Wednesday mean the Las Vegas Ethics Review Board may never hear the complaint, which was filed last month by Mike Bellon on behalf of car dealer John Staluppi Jr.

For example, if the same complaint is filed to the Nevada Ethics Commission, the local board now has the option to waive jurisdiction.

The city's new ethics board, as a result of the changes, now closely mirrors the state body: a two-member panel will screen complaints; the person filing the complaint can be fined up to $1,000 if it is determined it was filed based on political motivations; and residents can use newspaper articles as their only source of evidence.

The action also expands the city's board from five to seven members, which matches the City Council.

The new board also gives city officials greater due process, the ability to view evidence and subpoena witnesses.

The new rules, which were sponsored by City Councilwoman Lynette Boggs McDonald, also require council members to disclose the amount of all personal debts of more than $5,000. The new rule would go into effect next year, when financial reports are due.

Attorney Anthony Sgro, who is representing Bellon, said his client has filed a similar complaint with the state. The board on Aug. 16 is scheduled to decide whether it will hear the complaint.

Sgro also said that a new rule allowing only city residents to file complaints is unfair to business people who may want to do business with the city. Some of these business people, he said, may live out of state.

Such is the case regarding Staluppi, an East Coast car dealer who was trying to open a Nissan dealership in the northwest.

After the dealership was denied by the council, Bellon, a consultant who is representing Staluppi regarding the car dealership, filed the ethics complaint on his client's behalf after learning that Mack had taken a $60,000 loan from rival car dealer Joseph Scala. Staluppi also has filed a lawsuit against Mack and Brown seeking their removal from office based on allegations the councilmen were trying to broker a deal between Staluppi and Scala.

Staluppi, who recently opened a car dealership in City Councilman Michael McDonald's ward, lives in Florida.

Sgro said the new rules would have prevented Staluppi from filing a complaint to the city's board, despite the fact he is doing business with the city.

"I find it too coincidental that you could insert "John Staluppi" in the blanks of these ordinances and it would apply strictly to him," Sgro said.

"If you have to be a Las Vegas resident, the city can unethically deal with anyone who is not a Las Vegas resident that they want to," Sgro said. "What kind of comfort zone are we giving those business people when you tell them the city is going to deal with them on a whim?"

Attorney Frank Cremen, who has served as legal counsel for the city's board, said the board essentially had no power. Even with the changes, Cremen said he questions the need for a city ethics board. He said residents already have options such as recall petitions, which can serve to remove officials from office.

"These boards have been abused over the years for political advantage, and I think if you took the benefits and detriments of both these boards, they all ought to be abolished," he said.