Suit seeks removal of Mack, Brown

Diana Sahagun

Monday, July 2, 2001 | 11:01 a.m.

A local attorney is asking for the removal of Las Vegas councilmen Michael Mack and Larry Brown on a charge of malfeasance, according to a lawsuit filed in District Court this morning.

Attorney Anthony Sgro is asking a District Court judge to order either the Las Vegas Ethics Commission or Nevada Ethics Commission to start an investigation based on a charge that the councilmen "abused their power" by turning down a car dealership proposed by businessman John Staluppi.

The lawsuit alleges the councilmen used their city positions to act as brokers between Staluppi and landowner Joseph Scala, calling their actions "willful and malicious."

According to the lawsuit, the city's ethics code forbids elected officials from acquiring an interest in a contract, transaction, or other matter that may be the subject of an action by the City Council.

The suit alleges the councilmen had a personal and political interest in the denial June 6 of Staluppi's site plan for a Nissan dealership.

The lawsuit also attempts to hold Mack and Brown responsible for monetary damages as a result of the denial of the car dealership.

The lawsuit names the city of Las Vegas, Mack, Brown and Scala. Language in the suit also opens the door for other councilmembers or others to be named.

According to the lawsuit filed this morning, Staluppi and his partner Frank Maione say Mack guaranteed approval of a car dealership they were proposing to open near Santa Fe Station.

At Mack's urging, Staluppi said he first tried to negotiate with Scala, who owned land in an area pegged as the site of an auto mall. But the two could not come to an agreement, so Staluppi settled on a commercial site on Rancho Drive.

The partners say they attended meetings with Mack and were assured the dealership would be approved by the City Council, according to the lawsuit.

According to the suit, when the item was denied June 6 the partners' job opportunity vanished, leaving "substantial economic losses."

Staluppi is asking for damages in excess of $10,000 each on four counts. Maione is asking for damages in excess of $10,000 each on three counts. Jae Sun Kim, who was trying to sell the land to Staluppi, and Realtor Brittney Bellon are also asking for damages in excess of $10,000 each.

The lawsuit alleges Scala intentionally interfered with the deal between Kim and Staluppi by improperly contributing campaign funds and by making excessive loans to Mack to influence his vote on the proposed Nissan dealership.

Mack said last week that he accepted a $60,000 loan for his pawn shop from Scala last year.

Although the item had been reported on Mack's Feb. 12 financial disclosure form, he said he did not disclose the loan because he thought it had been paid off.

The lawsuit alleges Mack intentionally failed to disclose the money he received from Scala because they had conspired to prevent any new car dealerships from being located outside Scala's property.

On Thursday the City Council will reconsider the site plan for the car dealership. Mack asked for the item to be reconsidered after he discovered he had an outstanding loan to Scala he thought he had repaid. Mack will abstain from the vote, as will Mayor Oscar Goodman and Councilman Michael McDonald.

Staluppi and Maione have also filed a separate lawsuit against the City Council and an ethics complaint against Mack and Brown relating to the denial of their proposed Nissan dealership.