Heller’s probe of election claim still unresolved

Friday, Jan. 3, 2003 | 9:09 a.m.

CARSON CITY -- Secretary of State Dean Heller's investigation into allegations that attorney general candidate John Hunt violated campaign laws remains unfinished after more than three months.

Hunt, a Democrat who lost the election to Republican Brian Sandoval, said the unresolved status of the investigation "smells of politics. There was nothing untoward." Heller started the investigation in September after he received a complaint from Peter Ernaut, campaign manager for Sandoval. Ernaut alleged that Michael Shustek had secretly contributed $158,500 through other people to the Hunt campaign.

Like Sandoval, Heller and Ernaut are Republicans.

Ernaut said the $158,500 came from the Vestin Group, its founder Shustek and company employees. He asked if Vestin Group's workers received raises or bonuses to cover their contributions or if they served as a "pass-through" for Shustek to circumvent the contribution limits.

Susan Bilyeu, deputy secretary of state for elections, said this week that seven people have not responded to inquiries on whether they have funneled money from Shustek to Hunt. The other 33 people, including Shustek, have all denied any misconduct.

Bilyeu said the seven failed to reply by the latest deadline of Dec. 19. She said she may ask the state Division of Investigations "to get hold of these seven. We can't keep sending letters." Two letters have been sent asking contributors if they did anything wrong.

The investigation won't be completed until the office receives replies from the final seven, she said.

Nevada law says a person "shall not make a contribution in the name of another person." It also says a candidate should not "knowingly accept a contribution made by a person in the name of another."

"The whole thing is kind of twisted," Hunt said. "Somebody makes an allegation and does not provide any evidence to back it up."

Hunt said the burden shifts to his supporters to "try to prove a negative."

Hunt's lawyer denied that there had been any misconduct, Hunt said, and added, "In all honesty I don't think they were entitled to a strong denial. All people, including prominent attorneys, have stepped up. They were falsely accused."

The complaint was filed to provide a "political advantage" to Sandoval.

And "it was effective," Hunt said. "It had no merit to begin with. It has no merit in totality," Hunt said.