Judge rules another creditor can collect from embattled Mack

Diana Sahagun

Friday, Dec. 7, 2001 | 10:07 a.m.

A judge's order for Las Vegas Councilman Michael Mack to pay back one of his lenders comes as the councilman is nearing plans to reorganize $3.3 million in debt to protect him from other creditors.

The ruling by District Judge Norman Robison Thursday is the second of its kind in three weeks, and the second of Mack's 12 lenders who have gone to court to seek payment on outstanding loans.

Robison granted the judgment in favor of Anthony Surrite by default, because neither Mack nor his attorney responded to the lawsuit or were present for Thursday's hearing. The judge ordered Mack to pay nearly $37,000, which includes attorney fees, the outstanding loan and interest.

On Nov. 13 a federal judge ordered Mack to pay a national pawnshop chain for $600,000 in gold jewelry Mack purchased in 1999. That ruling was also a default judgment.

Mack said he was not sure why his attorney, Michael Mushkin, was not present at Thursday's hearing, but he said Mushkin had met with Surrite's attorney, Kent Larsen, in an attempt to reach a resolution before the court hearing.

"I don't know why it went as far as district court," Mack said.

According to the lawsuit, 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.

As of Aug. 1, Mack still owed Surrite $33,402, according to the suit.

Surrite, who owns Nevada Discount Fixtures Inc. on Sirius Avenue, sued the councilman and his limited liability company, Nevada Asset Lenders.

Mack said he and Mushkin are working on reorganizing his $3.3 million debt, so he will be able to pay his lenders. In the coming week Mack said he expects to have a formalized plan, possibly Chapter 11 reorganization.

Chapter 11 reorganization would allow Mack to continue operating his First Class Pawn & Jewelry store on Flamingo Road while he restructures his debts.

Mack said he was not surprised that Surrite turned to the court system for payment.

"It definitely was not a surprise to me," Mack said. "There have been so many stories that I have a high amount of debt," Mack said. "I want them to work with me, but if they can't, then they have to use their legal means."

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 as a result of a situation involving Joseph Scala, another lender.

In June, Mack led the vote to deny an application by John Staluppi Jr. for a car dealership that would have rivaled Scala's. Days later, Mack disclosed he had an outstanding $60,000 loan from Scala, who owns Courtesy Automotive Group, and asked for the item to be reconsidered so he could abstain. The item was denied a second time.

Mack is facing two ethics complaints, which are scheduled to be heard before the Las Vegas Ethics Review Board on Feb. 14. The complaints, filed on behalf of Staluppi, allege Mack voted against the dealership because of leverage by Scala.