Las Vegas Sun

March 18, 2024

Ethics Commission rejects Loux’s settlement offer

CARSON CITY -- The state Ethics Commission has rejected a settlement offer from Bob Loux, who is accused of improperly raising his salary while he was director of the state Nuclear Projects Office.

Commissioners wanted Loux to admit he committed a “willful” violation, but Loux’s attorneys declined.

Tom Perkins, a lawyer representing Loux, said there is a criminal investigation under way by the sheriff’s office in Reno. Conceding Loux’s actions were willful might hurt the defense if criminal charges are filed, Perkins said.

Calling his actions a “significant ethical lapse,” Loux had offered to repay the state more than $29,000 to close the case.

The commission, by a 3-2 vote, turned down the proposed settlement.

The case is set for a full hearing in March. But both sides said there could be further negotiations toward a settlement.

Voting to accept the offer were George Keele of Douglas County and Don Klasic of Reno. Those opposed were Mark Hutchinson of Las Vegas and Jim Shaw and Bob Weise, both of Reno.

Perkins also said he is working with state Controller Kim Wallin to repay money owed in connection with Loux’s retirement. Perkins said the best estimate now is that Loux owes $22,000, which would have been in addition to the settlement.

Patty Cafferata, executive director of the Ethics Commission, said subpoenas have been issued for the March 12th hearing. Among the witnesses will be former Gov. Kenny Guinn, she said.

Loux maintains he had authority during the Guinn administration to raise his salary.

His stipulation admitted only to an ethical violation in fiscal 2008, after Gov. Jim Gibbons took office. In 2008, Loux took money from a vacant position and distributed it among his staff.

Loux admits that in July 2007, which is included in the 2008 fiscal year, he raised his salary from $55 per hour to $63. He said this led to an overpayment of $16,444. Loux also changed his retirement plan so the state paid the full monthly premium instead of his contributing a portion.

After the overpayments were uncovered, Loux resigned.

In arguing for the settlement, Perkins said the offense destroyed Loux’s career -- he lost his job and this blemish may keep him from ever being employed in his life’s work.

But commissioners raised objections. They wanted the word “willful” in the stipulation, arguing that Loux, who was a 30-year employee of the state, knew this was wrong.

Commissioner Bob Weise, appointed for this case only to replace a commissioner who had a conflict, said there was no penalty under the agreement. Loux was merely paying back the money he took from the state, he said.

The commission had the option of imposing a penalty. But the two-hour hearing ended when Loux’s attorneys refused to include the word “willful” in the violation.

In the proposed stipulation, Loux agreed to repay $16,444 in salary and $12,922 in restitution for the premiums he did not pay for retirement.

According to figures from the state, Loux had an authorized salary last fiscal year of $110,851 and he earned $145,718. That was more than the $141,000 paid to the governor, a violation of the law.

The ethics complaint against Loux was filed by Assembly Minority Leader Heidi Gansert, R-Reno. She could not be reached for comment.

Cy Ryan may be reached at (775) 687 5032 or [email protected].

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