State queries campaign donors

Monday, Oct. 21, 2002 | 9:18 a.m.

CARSON CITY -- John Hunt, the Democratic candidate for state attorney general, and his supporters have a week to demonstrate that a group of campaign contributions from employees of the same company did not break election laws.

The secretary of state's office sent letters Friday to Hunt, Michael Shustek, a major contributor, and 41 employees of Shustek who made substantial contributions to Hunt. The letteres request more specific information by Oct. 28.

Hunt's press secretary, Sharyn Stein, said Sunday the required information has already been sent to Secretary of State Dean Heller, a Republican, and that the new request is a political move to support Hunt's GOP rival, Brian Sandoval.

The employees have already signed statements saying they made the campaign contributions on their own without any reimbursement from Shustek, Stein said, and those statements won't change.

"I don't know why he's (Heller) is wasting his time and effort."

Shustek heads Vestin Mortgage, Shustek Investments and Del Mar Mortgage.

A complaint filed by Sandoval's campaign manager, Peter Ernaut, alleges that Shustek may have funneled money through his employees and others to Hunt's campaign.

Ernaut said at least $158,500 out of $582,000 in Hunt collections came from Shustek, his companies and employees. He questioned whether the workers received raises or bonuses to cover the contributions or whether they served as a "pass through" for Shustek to circumvent contribution limits.

Nevada law limits contributions to $5,000 per person in the primary election and $5,000 per person in the general election.

In the letters to Hunt and the others, Susan Bilyeu, deputy secretary of state for elections, requests responses be in affidavits, but she notes that the affidavits are not required.

Bilyeu asks Shustek if he gave campaign contributions to Hunt in the name of another or through another company. She asks if Shustek or any of his companies held a fund-raiser for Hunt and the dates and locations.

The 41 employees were asked if they received an increase in salary or a bonus after making their contribution to Hunt. They were also asked if they were promised to be reimbursed, and whether somebody funneled the money through them, using their names.

The employees have already signed letters saying there were not fronts for Shustek and they made the contributions on their own. Stein said she did not know why Heller is asking for more correspondence "unless it's for political reasons."