FBI probes possible strong-arm tactics during battle over taxes

Friday, Oct. 10, 2003 | 11:22 a.m.

CARSON CITY -- The FBI has started an inquiry into possible witness intimidation during the tax battle at the 2003 Legislature.

Sen. Mark Amodei, R-Carson City, said Thursday he was questioned Tuesday by FBI agents for about 40 minutes on lobbying practices during the session.

"Nothing happened directly to me," he said. "I am not a primary source."

During the session, there were rumors of strong-arm tactics by lobbyists on both sides of the tax debate.

FBI Special Agent Jim Stern said some information has been "received and gleaned" and that information is being reviewed.

"There is no open case at this point," Stern said. "We're reviewing the information to determine if it merits opening an investigation."

He refused to comment further on the nature of the investigation.

Amodei said he suggested to the FBI it may want to question those who represent Budweiser beer and Capital Beverages, which distributes the beer in western Nevada, including at Lake Tahoe.

"People might be interested in knowing why you can't get a Budweiser at Lake Tahoe," Amodei told the Sun.

Bill Bilyeu, the attorney for Capital Beverages, is in Spain and could not be reached for comment. Kurt Brown, the owner of Capital Beverages, could not be reached for comment.

Bob Crowell, a Carson City attorney who represents Budweiser, said: "I have not been contacted by anyone regarding this matter, nor to the best of my knowledge has anyone from Anheuser-Busch."

Toward the end of the session, Harrah's Tahoe and its sister casino Harvey's canceled their contracts with Capital Beverages to sell Budweiser, and there were rumors the decision was tied to a difference on the stand on new taxes.

Gary Thompson, a spokesman for Harrah's, said the decision to stop selling Bud had nothing to do with the debate in the Legislature.

"We got a better deal from Coors than from Capital Beverage. Why should we pay a higher price? We make a better profit off Coors," he said.

"We disagreed with Kurt Brown over a broad-based business tax," he said. But, he added, this was a business decision to cancel the contract because "Capital Beverage could not meet the price."

Thompson said there may be a connection "in Mr. Brown's mind" between the tax and the cancellation of the contract, but "it was all about price."

John Schwartz, a spokesman for Budweiser, declined to discuss the contract cancellation.

The gaming industry supported a broad-based tax while Brown backed an employee-based tax.

Harvey Whittemore, lobbyist for the Nevada Resort Association, which backed the broad-based tax, said he has not been contacted by the FBI.

"I had nothing to do with the cancellation of the contracts," he said.

Whittemore also represented the Nevada Beer Wholesalers Association, of which Brown is a member.

Assemblyman Chad Christensen, R-Las Vegas, said during the Legislature he had been threatened that his business would be boycotted if he didn't vote a certain way on taxes. He said he never reported it to the FBI. He could not be reached for comment Thursday.

Amodei said that just because the FBI is asking question "doesn't mean there is anything wrong." He said it was "healthy" for an outside agency to look at the practices.

"I haven't looked at the federal statutes but it would be interesting to know if it prohibits intimidating a witness in a state legislature," Amodei said.

Amodei and Sen. Terry Care, D-Las Vegas, were the authors of one tax plan that fell by the wayside in the Legislature.

Stern said the FBI does not open cases unless a federal law is broken and it is determined that the FBI would have jurisdiction.

Sun reporter

Jace Radke contributed to this story.