Federal grand jury indicts former Nevada power broker Harvey Whittemore

By David McGrath Schwartz

Published Wednesday, June 6, 2012 | 2:29 p.m.

Updated Wednesday, June 6, 2012 | 5 p.m.

A federal grand jury indicted former Nevada powerbroker Harvey Whittemore today on charges of funneling $138,000 to an elected official’s campaign through family members and employees and then lying to the FBI about it, the U.S. Attorney’s office said.

Whittemore, a prominent lobbyist and attorney, promised to raise $150,000 for an unnamed federal official, only identified as “Federal Elected Official 1,” in February 2007.

“Mr. Whittemore allegedly used his family members and employees as conduits to make illegal contributions to the campaign committee of an elected member of Congress,” said Assistant Attorney General Lanny Breuer, in a news release. “Our campaign finance laws establish maximum limits on individual contributions, and failure to adhere to those rules jeopardizes the integrity of our elections. We will continue to pursue those who engage in such conduct.”

Whittemore, 55, of Reno, was charged with one count of making excessive campaign contributions, one count of making contributions in the name of others and two counts of making a false statement to a federal agency.

If convicted, Whittemore faces up to five years in prison and a $250,000 fine on each count.

Whittemore’s attorney, Dominic Gentile, said in a statement: "It is clear to us and it will be clear to a jury that Mr. Whittemore always acted in a law-abiding manner, well within his constitutional rights and with complete transparency. We respectfully, but strongly, disagree with the government's interpretation of both the facts and law applicable to this case as well as the decision to indict Mr. Whittemore."

Federal law prohibits making contributions to a campaign through a conduit in order to hide the identity of the true contributor.

Federal law also sets limits on the amount that an individual can contribute to a campaign. In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election.

According to the U.S. Attorney’s statement, “Whittemore allegedly devised a scheme and plan whereby he used family members, employees of Company A, and their respective spouses, as prohibited conduits through which to funnel his own money to the federal elected official’s campaign committee under the guise of lawful campaign contributions.”

Whittemore told some employees that they were bonuses, and paid the contributors additional money on top of the reimbursements, according to the U.S. Attorney’s office. If a conduit contributed $4,600, Whittemore reimbursed them $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000.

A federal magistrate has issued a warrant for Whittemore's arrest.

Although the indictment does not name the elected official who received the alleged conduit contributions, Whittemore and his associates gave U.S. Sen. Harry Reid nearly $150,000 on March 31, 2007, according to calculations made by Sun columnist Jon Ralston.

Reid spokeswoman Kristen Orthman did not respond to questions about whether Reid was the federal official identified in the indictment.

In a statement, she said: “The Whittemore family gave money to local, state and federal officials over many years. At no time did Sen. Reid have any knowledge that Mr. Whittemore was engaging in these alleged unlawful contributions to Sen. Reid or any elected official. Sen. Reid believes that this is a very serious matter, and he has full confidence in the American justice system.”

This story is developing. Check back for updates.