No evidence found against Vestin

Friday, Oct. 3, 2003 | 11:20 a.m.

CARSON CITY -- A yearlong state investigation has failed to turn up evidence that illegal contributions were made to the campaign of the unsuccessful Democratic nominee for attorney general in 2002 so the probe is ending, Secretary of State Dean Heller announced today.

Heller, a Republican, said the state Division of Investigation has concluded "that there does not appear to be sufficient corroborating information and or supporting facts to justify continuing the investigation."

Peter Ernaut, campaign chairman for Attorney General Brian Sandoval, filed the complaint on Sept. 18, charging that companies and workers for Michael Shustek and his Vestin Mortgage had funneled money illegally to the campaign of John Hunt.

A number of employees of Shustek made $1,000 contributions to Hunt. Ernaut questioned whether the money actually came from Shustek, which would have violated the campaign donation limits.

Heller turned the investigation over to the state Division of Investigation. He said the report of the division concludes that although the contributions could have violated of state election law, the contributors either denied the allegations or refused to comment.

Heller said the secretary of state's office does not have the power to subpoena witnesses, so it had to turn the investigation over to the investigations division. Even then, he said, a judge would have to approve subpoenas.

"Securing a judge's approval for a subpoena or warrant requires meeting a higher burden then conducting an investigation," Heller said.

He said he did not want to risk violating the civil rights of these contributors by delving into their personal finances or bank accounts in an attempted to uncover any possible wrongdoing.

"Without concrete evidence of a felony crime being committed, and due to the fact that many of the witnesses have been uncooperative, to extend the investigation without any clear path to follow would be a waste of limited resources and manpower," Heller said.

"Therefore, I do not feel it is prudent to extend the limited resources of my office and that of NDI on this matter unless additional corroborating evidence becomes available at a future date," he said

Heller said he would reopen the case if corroborating evidence is unveiled at a later time.

Hunt said this morning that the claim against him was done "solely for political gain" and he feels the system under which the claim was made and investigated "is unconstitutional."

"The claim was outrageous and what (Heller is saying now) is outrageous," Hunt said. "If they had one centilla of evidence, they would have gone forward."

Hunt said the original complaint "was absolutely 100 percent false and done for political gain only. I think a system that allows trumped up, false claims to go forward for someone's political advantage is unconstitutional. It is a sad day for citizens."

Sandoval and Ernaut could not be reached for comment this morning.