A relieved Mack puts ethics woes behind him

Diana Sahagun

Thursday, Aug. 22, 2002 | 11:16 a.m.

Las Vegas Councilman Michael Mack pledged to be "the best at abstentions" after being cleared Wednesday by a municipal judge of four criminal charges of violating the city's ethics codes.

With his family and supporters in tow, Mack said he was relieved to be cleared of the allegations that have dogged him for more than a year, adding that he made a mistake when he voted on items relating to a Nissan dealership application in Town Center without disclosing he owed money to a rival car dealer.

"It's been a tough year, not just for myself but for my family," said Mack, who last year sought treatment in a Scottsdale, Ariz., clinic for stress. "I'm just glad this whole issue is behind me."

After more than two hours of closing arguments, Municipal Judge Bert Brown ruled Wednesday that the prosecution had not proved beyond a reasonable doubt that the councilman "knowingly" violated the city's ethics codes when he voted on four occasions in 2001 to postpone and ultimately deny a car dealership in northwest Las Vegas without disclosing he owed money to a rival dealer.

But the judge stopped short of condoning Mack's behavior.

"It may have been unethical, he may have been naive, his actions may have been inappropriate, but my job is to determine whether his actions are criminal," Brown said. "The city has not met that burden, so I find him not guilty."

Brown's statements were similar to those of District Judge Sally Loehrer, who last year ruled Mack's actions did not rise to the level warranting removal from office.

"Mack's actions as alleged herein, while they may be characterized as incredibly unethical, go more to a lapse or even a void in judgment," Loehrer wrote.

While some local officials have been unable to get past the stigma of being found guilty by an ethics board, Mack won't have to face voters until 2005.

Mack said his constituents, family, and fellow council members have been supportive throughout the past year. He said he plans to run for re-election.

"I'm going to run an election that shows my record in representing my constituents," he said.

Northwest resident Debbie Kinsora, who attended Mack's trial, and said she was a "loyal constituent," said she would vote for him again.

"I am very happy to see our councilman (acquitted)," she said. "It's for the best. He's done a great job for our community, just fantastic." Mack still has an uphill battle to tackle his financial woes. In December Mack filed for Chapter 11 bankruptcy protection with more than $3 million in debt. Mack on Wednesday did not have an estimate of how much he owed his attorney, Richard Wright, in legal fees, but said he would pay for the charges personally.

Brown's ruling sent sighs through the courtroom, as Mack tearfully hugged his family and supporters, some who broke the news via cell phone.

Mack had been a sitting Ward 6 councilman for only two months before he voted June 6, 2001, to deny a car dealership application proposed by John Staluppi Jr.

As a result of his vote -- in which he did not disclose he owed $60,000 to rival car dealer Joseph Scala -- Mack was thrust into the spotlight, facing two ethics complaints and a lawsuit seeking his removal from office.

But one year later Mack said he has learned that his voting record needs to be crystal clear as it relates to disclosing or abstaining from items in which he may have a conflict of interest. Over the past year Mack has been diligent about disclosing and abstaining from votes that may affect his brother's Super Pawn stores or projects that are close to Scala's car dealership in Town Center.

"I am going to be the best at abstentions," Mack said with a smile.

Mack said the last year has been especially hard on his family members, who attended his two-day trial.

"The hardest part was looking into my mom's eye," said Mack, in tears. "It's been really tough for my parents and my family. They've been very supportive and they've always believed in me."

The two consultants who filed ethics complaints against Mack accused him of trying to broker a deal between Scala -- who owned land inside Town Center, where all new car dealerships were supposed to locate -- and Staluppi, who wanted to locate outside the Town Center limits on Rancho Road.

Although testimony during the ethics trial showed he tried several times to get both parties together, Mack said after the verdict that he did not think he was wrong to try to encourage a business to locate in Town Center.

"I always like to encourage businesses to come to my ward," he said. "I'm always going to promote businesses to Town Center."

Mack landed before a municipal judge last week after the Las Vegas Ethics Review Board ruled in February that he had knowingly violated the city's ethics code when he failed to disclose his conflict of interest. The board directed its attorney, John Graves Jr., to prosecute Mack in municipal court.

According to city records Las Vegas taxpayers spent about $36,000 through June of this year on Graves' legal fees, including a private investigator. An additional $26,540 was spent on internal costs for the board, including meetings, transcripts, and documentation.

After the verdict Mack's attorney said the city's ethics board should be abolished. He also said the ethics board -- which has been criticized for not being tough on officials -- was trying to send a message with Mack.

"He happened to be the sacrificial lamb who came before a frustrated board that wanted to show, 'Yes, we do have teeth,"' Wright said.

During his hourlong closing argument, Wright spent more time attacking Graves and the city's ethics codes than he did explaining how Mack would forget he owed $60,000 to Scala.

Wright said Graves failed to call key witnesses -- include two of Mack's assistants at his First Class Pawn & Jewelry store, and his certified public accountant -- and did not subpoena bank records that could have shown whether Mack signed checks to Scala in the months before the 2001 votes.

Graves was also unable to locate Scala, who met with Mack in the days before the final June 6, 2001, vote.

"It was a total failure (by the prosecution) of proving he willfully violated the law," Wright said. "If there is available evidence for the prosecution ... (Graves) fails in his obligation to not bring it forward."

Wright also attacked the city's ethics codes, which he said were so unclear that Mack could not have intentionally violated them.

In his 35-minute closing argument Graves said it was not necessary to call the additional witnesses or subpoena bank records. Graves said the evidence showed Mack was in desperate financial straits in the fall of 2000 and could not have paid back the loan, because he was barely making payroll at his pawn shop.

"He needed the money desperately," Graves said. "If you need money desperately, you are watching every check with eagle eyes."

Graves' most critical witness, Hattie Baker -- who was Mack's assistant at his pawn shop -- testified that Mack signed one $1,000 check to Scala sometime between January and March 2001. Graves said nothing Wright presented disputed her claims, regardless of whether he had submitted the bank records as evidence. Mack's own financial disclosure statements filed with the state in February 2001 -- which listed a loan from Scala's limited liability company -- also prove Mack knew the loan was outstanding before he voted, Graves said.

"The evidence shows that he knew -- how could you not know you had a $60,000 loan?" Graves said. "He could be a total blockhead of Olympic proportions, but I don't think that's true."

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