Council denies request to investigate Mack, Brown

Diana Sahagun

Friday, July 6, 2001 | 10:22 a.m.

The City Council on Thursday denied a request to investigate accusations of malfeasance involving Las Vegas City Councilmen Michael Mack and Larry Brown.

The councilmen are accused, according to two ethics complaints and a malfeasance lawsuit, of trying to broker a deal between John Staluppi, who wanted to open a Nissan dealership near Santa Fe Station, and Joseph Scala, a rival car dealer.

Attorney Anthony Sgro, who represents Staluppi, asked the council to investigate the charges against Mack and Brown as it was reconsidering a site plan review for the dealership proposed by Staluppi.

City Councilman Gary Reese, who was filling in for Mayor Oscar Goodman, who recused himself from the issue, said an investigation was not necessary, as one is already being conducted by way of the lawsuit, he said.

"I didn't think it was necessary to spend taxpayer money on an investigation that is already being done by the attorney," Reese said after the meeting.

Goodman, who called for the investigation of Councilman Michael McDonald last year, declined comment because he had recused himself because of a conflict of interest in the dealership matter.

He said the accusations surrounding Mack, who asked for the site plan to be reconsidered after he realized he had an outstanding $60,000 loan from Scala, hurt the city.

"Nobody likes to have an accusation being made against them," Goodman said. "It doesn't do any good for anyone."

Although Thursday's item for the proposed dealership was being reconsidered at Mack's request, the result was the same -- a denial based on the incompatibility of Town Center.

Mack, who did not attend Thursday's meeting, sent a letter, in which he said he was abstaining from the vote. Mack has not been to work this week. Goodman said Thursday that the councilman had been hospitalized but has since been released.

Sgro was not surprised by the second denial, and he said the lawsuit stands. He also has asked a judge to overturn the council's denial.

Sgro expects more people to be added to the lawsuit, which seeks monetary damages based on the fact the dealership was denied, he said.

Brown maintains he voted the way he did -- twice -- because of his passion for maintaining the integrity of Town Center.

According to the plan, all commercial zones should be kept in one area, near U.S. 95 and Centennial Parkway. Brown, who represented the ward before two new wards were added in 1999, said he has a consistent record; it shows he will vote against any item that could harm the residents.

"This isn't personal," Brown told Sgro and his clients. "I have a consistent record of what I was trying to accomplish."

The charges against Mack and Brown have a familiar ring.

Last year, McDonald was accused of working behind the scenes in an attempt to broker a deal between the city and a financially ailing sports park. He was also accused of working behind the scenes to sideline an application for a tavern.

McDonald faced two ethics boards and the possibility of being removed from office. When the accusations surfaced during a public meeting, the City Council asked Metro Police to investigate.

Staluppi's attorney, Sgro, says the same type of scrutiny should hold true for Mack and Brown. He said the council set a precedent by calling for an investigation of McDonald.

Although Metro Police officials said they had sufficient evidence to arrest McDonald on criminal offenses, District Attorney Stewart Bell declined to prosecute. Bell said he did not have enough evidence to obtain a conviction.

Still, the accusations were serious enough to land McDonald before two ethics boards and a hearing before a District Court judge on a charge of malfeasance. The charge was ultimately dismissed.

In addition to the alleged conflict of interest, Mack is also in hot water because he voted last month to deny the dealership without disclosing his relationship with Scala. Mack said he did not realize until after the item was denied that the loan was still outstanding.

Sgro, whose law firm represented McDonald during his ethics hearings, says all council members should be treated the same.

"I think the City Council established how they are going to deal with certain issues, and I think that policy should be applied universally," he said.

Sgro said the key difference in the McDonald case is that the councilman never voted on the items relating to the sports park or the tavern.