Metro probes council finance records

Erin Neff

Wednesday, July 11, 2001 | 10:55 a.m.

Metro Police have begun examining financial records filed by Las Vegas City Council members amid speculation that Michael Mack is receiving treatment for a gambling problem.

Police on Tuesday obtained financial disclosure and campaign reporting forms for all council members, but were reportedly most interested in Mack's and Councilman Larry Brown's.

However, a Metro Police source said this morning there are no current investigations being conducted on Mack or Brown. Because of rumors and allegations Metro detectives are gathering information on all City Council members' financial disclosures, but no official criminal probe has been launched, the source said.

Ethics charges have been filed against both Mack and Brown in the wake of a controversial June 6 car dealership vote. A lawsuit seeking their removal from office on a malfeasance charge also has been filed.

Information in Mack's financial disclosure form, a public record to show an elected city official's personal financial ties, is fueling rumors he is being treated for a gambling problem.

"We believe his financial problems are related to gambling," said Anthony Sgro, an attorney representing car dealer John Staluppi in suits against Mack, Brown and against the city.

No one at City Hall appears to know Mack's whereabouts, although many say his family took him out of state -- likely to Arizona -- for treatment of an undisclosed medical condition two weeks ago.

Mack phoned City Hall on Tuesday to talk with his staff and colleagues for the first time in weeks and reportedly said he was feeling fine and has no intention of resigning his seat.

But his ducking out of town for unspecified medical treatment leads many to suspect Mack is suffering from something more than just the stress caused by recent news.

"The only thing we know is that he's unavailable," said city spokeswoman Andrea Smith, returning calls placed to Mack's office. "His secretary doesn't know where he is.

"The only instructions we were given is to say he's unavailable," she added.

Mack left town at the height of media scrutiny into the controversial car dealership vote and even missed Thursday's council meeting at which the vote was reconsidered at his request.

The rampant rumors about the root of Mack's problem may put the councilman in the unenviable position of answering questions about his suitability for office, a City Hall source said.

But some suggest Mack's best strategy is to remain quiet, fearing he could only exacerbate his problems if he spoke as candidly as he did recently about a $60,000 loan at the center of the ethics charges.

On June 6 the City Council denied Staluppi's application to build a car dealership on Rancho Drive in the city's northwest. Sgro petitioned the District Court to overturn that decision, alleging Mack and Brown acted improperly to sink the application.

Sgro alleges Mack and Brown encouraged Staluppi to work with rival car dealer Joe Scala in hopes of finding an alternate site for his dealership. Scala owns a chunk of land in the northwest Town Center zoned for an auto village.

Negotiations didn't pan out, leading Staluppi to stick to his original plan. Ironically, Mack originally supported Staluppi's Rancho location and went so far as to write him a letter saying both city staff and the Planning Commission supported it.

After the lawsuits and ethics charges were filed with both the city's Ethics Review Board and the state's Ethics Commission, Mack came clean for the first time about a $60,000 loan he received in September from one of Scala's businesses.

News of the loan, and Mack's statement that he forgot it was outstanding, raised concerns over whether the money hadn't made Mack change his mind about Staluppi. Mack also admits he had discussions with Scala last summer about 50 acres Scala owns in a part of Town Center the councilman wanted to set aside for car dealerships.

Mack claims he forgot about the outstanding loan until late June, even though it is one of 12 listed on a city disclosure form filed in February.

In addition to the loan from Scala's company, Peoples Real Estate Investment LLC, Mack lists 11 other individuals or companies who have loaned him money.

Outstanding amounts -- as of the Feb. 12 report filing -- are owed to Denny Mason, Helen Mack, May Muskin, Suzanne Kimmel, the Mack Family Trust, Anthony Surrite, Levebure Security, EZ Corp., LDM Enterprise, First Security Leasing and Nevada First Bank.

Mack has not disclosed the amounts of any of the loans, including the one from Mason, the owner of Big Screen Furniture Showcase. Sources tell the Sun that loan amount is well into the six-figure range. Mason could not be reached.

The loans, coupled with the closing of one of Mack's jewelry stores and the sale of another, raised concerns about Mack's finances.

Brown, meanwhile, has been distancing himself from Mack since the controversy began. He insists the council's June 6 vote to deny Staluppi's dealership was taken to maintain the integrity of Town Center's boundaries.

Town Center is a zoned area of about 2,000 acres designed to manage future growth in the city's northwest by specifying what type of development is allowed within.

At Thursday's council meeting Brown went so far as to warn Staluppi's other attorney, Mike Bellon, to "be very careful about how you use our names together."

Although Mack's colleagues don't want to be linked with someone with possible legal and ethics problems, they are worried about his well-being.

"I am more concerned about Michael Mack the person, as opposed to Michael Mack the councilman, right now," Councilwoman Lynette Boggs McDonald said. "It's just one of those mysteries."

Councilman Gary Reese said nobody talking outwardly about Mack has been given any details about Mack's health.

"I saw his secretary this morning and told her to give him my best and tell him I love him," Reese said Monday. "If I was supposed to know what's going on, I'd know."

Both city colleagues and political advisers said Mack's family is calling the shots with his treatment. Mack is a divorced father of two young boys. He is the brother of Steven Mack, who owns the SuperPawn chain.

Steven Mack did not return calls and numerous attempts to reach Michael Mack were unsuccessful.