Wednesday, Aug. 24, 2005 | 10:09 a.m.
CARSON CITY -- An agent for the state Gaming Control Board involved in the background investigation of Wynn Las Vegas executives does not have to wait one year before going to work for the Strip hotel.
The state Ethics Commission, in a 4-2 opinion released Tuesday, said the state's one-year "cooling off" period does not apply to senior agent Jeffrey J. Horky, who took a job in May as compliance supervisor at the resort.
Horky's job is to make sure Wynn Las Vegas follows laws and regulations.
Before taking the position with Wynn, Horky asked for an advisory opinion on whether he would be precluded from taking the job at a salary comparable to his state pay.
The commission said the "success of Wynn's application with the Nevada Gaming Commission did not rest with Mr. Horky's approval of those individuals he investigated.
"Nothing in the record suggests that Mr. Horky compromised his public duties in order to gain favor in the form of employment with Wynn," the commission said. It said he is free to start work without sitting out a year.
Commissioner Bill Flangas, one of those who dissented, said Horky appeared to be "good and honest," but he said there was a reason for the cooling off law. "I take issue with not adhering to it."
Flangas of Las Vegas said there appeared to be no wrongdoing in this case, but he said the law should either be followed, modified or abolished.
Horky was one of six state agents who conducted background and financial investigations of 11 individuals relating to Wynn Las Vegas, which opened in April. The investigations started in April 2004 and were finished in February 2005.
For his part, Horky conducted the financial investigation of Marc Rubinstein, general counsel and secretary to Wynn Resorts LTD; of Yoshiyuki Shoji, executive officer of Aruze Corp., and president-secretary of Aruze USA Inc., a substantial shareholder in Wynn, and Tomohiro Okada, controlling shareholder of Aruze Corp.
He also interviewed key employees and assisted in initial interviews of all 11 individual applications. He merged the background and financial information written by the other five agents into one complete report.
On March 29, the week following the approval of the Nevada Gaming Commission of the Wynn application, Rubinstein called Horky and offered him a job. It was the first time there was any discussion of employment, the Ethics Commission said.
Horky met again with Rubinstein on April 1 and then on April 7 he was interviewed by senior management. He accepted a job effective May 23.
Before leaving the state's employ, Horky asked for an advisory opinion from the Ethics Commission, and if it found he was subject to the "cooling off" law, that he be granted a waiver. The commission met May 4 and reached its decision that day.
The law says the "cooling off" period applies to a person who has a job formulating policy for the business or industry. It also applies if the person during the preceding year "directly performed activities, or controlled or influenced an audit, decision, investigation or other action, which significantly affected the business or industry which might, for this section employ him."
The person would also be barred from accepting a job if he possessed knowledge of the trade secrets of a direct business competitor.
The commission said Horky did not make policy or possess trade secrets. Horky did conduct financial and background investigations but these duties "did not 'significantly affect"' Wynn.
The commission said Horky never made any recommendations, and if an applicant was found to have a questionable background or finances, that person would have been removed by Wynn and replaced with another application, the commission said.
The commission said there was one restriction on Horky. It cited a law that says a public employee cannot for one year after leaving the state represent anybody for compensation on an issue that was under consideration by the agency during the time of his service.
An "issue", as defined in the law, is a case, proceeding, application, contract or determination but does not include things such as bills in the Legislature or administrative regulations.
Voting in favor of the opinion were Commission Chairwoman Caren Jenkins and members Tim Cashman, Rick Hsu and George Keele. Dissenting were Flangas and Jim Kosinski.
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