Lawsuit vs. Mack claims unpaid debt

Diana Sahagun

Friday, Aug. 31, 2001 | 10:50 a.m.

Michael Mack, who is more than $3.3 million in debt, has been sued by a Las Vegas man who says the city councilman owes him more than $33,400 from a $100,000 loan issued in September 1999.

Anthony Surrite, who owns Nevada Discount Fixtures Inc. on Sirius Avenue, names the councilman and Mack's limited liability company, Nevada Asset Lenders, in the suit, which was filed Monday.

Nevada Asset Lenders operates First Class Pawn and Jewelry Superstore on West Flamingo Road. Mack owns the store.

Mack, who filed a financial disclosure form with the city clerk in February, reported that he owes 12 lenders more than $5,000 each. Mack, who said this month that, as of December, he was $3.3 million in debt, reported that, also as of December, he owed Surrite $46,201.

As of Aug. 1, Mack still owed Surrite $33,402, according to the suit. Interest charges will continue to accrue at an annual rate of 12 percent.

According to the lawsuit, filed Monday by Attorney Kent Larsen, Surrite loaned Mack $100,000 on Sept. 30, 1999. Mack promised to pay back the loan in full by Oct. 30, 1999, according to the lawsuit.

Surrite is seeking damages, based on breach of terms, because Mack has "failed and refused to pay." Surrite is seeking damages -- of at least $10,000 each -- against Mack and Nevada Asset Lenders. He is also seeking attorneys' fees and other costs, according to the suit.

Mack did not return calls seeking comment and Larsen, when reached, declined comment.

Questions regarding Mack's mounting debt and whether he used his position as a councilman to solicit loans for his failing pawn shop business have surfaced in recent months because of an incident involving Joseph Scala, another lender.

Scala, who owns Courtesy Automotive Group, lent Mack $60,000 in August 2000. Scala also owns land, inside Town Center, which city officials are proposing for an auto mall.

In June Mack voted to deny an application by John Staluppi Jr. for a car dealership that would have rivaled Scala's. Staluppi's dealership would have been outside the Town Center limits on Rancho Road.

Mack is facing two ethics complaints, which are before the Las Vegas Ethics Review Board. He also faces another lawsuit filed by Staluppi through his attorney Anthony Sgro. Staluppi alleges his dealership was denied because Mack was pressured by Scala.