It’s Only Been 20 Years Operation Yobo Nets Political Jackals From Each End of the Silver State

by Johnny Gunn

It started before 1982, but Nevadans discovered that five well known political leaders had been indicted for political corruption including accepting bribes, offering deals, participating in what has been called the biggest multiple defendant public corruption case in Nevada history. All five indicted were found guilty. however the conviction of Reno City Councilman Joe McClelland was overturned because of faulty jury instructions. He had already served his one year sentence by that time. The others served their full sentences.

The Players

• State Senator Floyd Lamb (Guilty)
• State Senator Gene Echols (Guilty)
• Clark County Commissioner Woodrow Wilson (Guilty)
• Clark County Commissioner Jack Petitti (Guilty)
• Reno City Councilman Joe McClelland (Guilty verdict overturned)

Undercover FBI agent Steve Rybar, working under the assumed name Steve Reilly, offered a variety of favors to Nevada politicians, and asked for favors in return. Those favors including such things as zoning changes and loans. Some of the loans for investment purposes, would come from the state retirement fund. Rybar still lives in Las Vegas where he operates several businesses.

The amounts of money involved aren’t in the skyrocket category for most of the players. Gene Echols, who insists he was set up, was convicted of taking $1,000.

Wilson, the first black Nevadan to be elected to the Nevada legislature, was convicted while a county commissioner of taking a $5,000 bribe, but served his sentence under probation.

Petitti was also found guilty of accepting a $5,000 bribe and served six months.

Senator Lamb was the initial target of the sting and reportedly had accepted about $20,000 before, and when he was approached to allow a loan from the state retirement system allegedly to be used to purchase Boomtown in northern Nevada, he also demanded a one percent “finders fee.”

Rybar worked for the Nevada head of the FBI, Special Agent Joe Yablonsky, a colorful character 20 years ago, and continuing today. Yablonsky is 74-years-old, and lives in Florida.

The man who represented Senator Lamb, Richard Wright continues his criminal defense law firm in Las Vegas and currently represents two of the current Clark County Commissioners under indictment for political fraud. From the beginning, Wright has objected to the FBI practice of sting operations. As many others, he considers such operations as entrapment.

He considers it more than just dangling a carrot in front of someone who is already willing to commit a crime, he says it entraps those who wouldn’t otherwise commit a crime, because the sting agent makes it too easy.

Indictments weren’t handed down all at once, and the trials were held over a period of years, with the last one ending in 1984.

A little history, please

Eben Rhoades

Nevada has been home to political fraud almost from that historic day in 1864 when Honest Abe signed the statehood bill creating old Battle Born, #36 on the flag’s field of stars, and continuing into the present. Current indictments in Clark County for political bribery and fraud include both current and past members of the county commission.

According to the history books, it was the state’s first treasurer who created the largest fraud case prior to Operation Yobo, but according to many, the 1860s case has cost the state more money than any other. Eben Rhoades allegedly sold state land, then used the money for fraudulent investments, and reportedly a large cocaine habit. Rhoades plundered the state’s permanent school fund as well, and we have been paying for that ever since. The fund collapsed and the state had to pay into it again.

Rhoades was never charged or convicted. In fact, it wasn’t until after his death from heart failure that his misdeeds were even discovered. According to former state treasurer Patty Cafferata, the state has lost about $30 million per year because of Rhoades’ stealing the state permanent school funds. Cafferata says that amount is what additional interest would have been.

Over the years there have been many political scandals in Nevada including charges of bribery brought against Nevada’s first U.S. Senator, William Stewart. He and Francis Newlands fought hard for the seat in 1898, and there were charges of votes being purchased, bribes offered, and gangs of gun fighters working for Stewart.

Nevada was often referred to as the state that did not accept prohibition, even the director of the federal agency charged with upholding the law was charged with drinking and collecting protection money from those who operated stills. In most communities in rural Nevada today, families still talk about prohibition and how their family outwitted the revenuers.

Key Pittman

It was 1940 when Key Pittman was elected to his sixth term in the U.S. Senate, but there are many who question whether the man was even alive at the time. Prior to the election, Pittman was gravely ill, and wasn’t expected to live. His democratic backers kept this information to themselves during the campaign, and some say the public was cheated into voting for a dead man/

Pittman died just five days after the election, and since the governor at the time, E.P. Carville was also a democrat, the party didn’t lose a seat. Carville appointed a democrat, and the so called kingmakers, as they were called, were delighted.

Questions as to whether Pittman was actually alive at the time he was elected persist today.

Harry Claiborne

It was northern Nevada’s pimp master Joe Conforte who is responsible for the FBI investigation of U.S. Federal Judge Harry Claiborne. Claiborne was appointed to the federal bench by President Jimmy Carter in 1978, and in 1986 was impeached by the U.S. Senate. He had been charged with failing to pay taxes on more than $100,000, and accepting bribes in excess of $30,000. A second trial took place and the bribery charges were dropped.

Records indicate that Conforte, while under investigation for tax charges as well, told investigators that he had paid Claiborne $30,000 in bribes, and according to FBI Special Agent Joe Yablonsky, that kicked off the full investigation.

Claiborne was found guilty, sentenced to federal prison, and fined, but refused to step down from his position as federal judge. A federal judge is appointed for life and can only be removed by death or impeachment. He collected his judicial pay while serving time in a federal penitentiary. He was impeached by the house of representatives in July, 1986, and convicted by the senate on October 9.

Prior to being appointed to the federal bench, Claiborne was partners in a law firm with attorney Oscar Goodman, currently mayor of Las Vegas. Goodman represented Claiborne in both trials, and before congress during the impeachment process.

And So it Goes

There have been many other instances of political fraud and ill doings in Nevada, and it seems politicians simply don’t learn from history. In Las Vegas right now, one Clark County commissioner and two former commissioners are under indictment for political corruption, while another former commissioner has copped a plea and is expected to testify against them.

Commissioner Mary Kincaid-Chauncey has pleaded not guilty, while former commissioners Lance Malone and Dario Herrera have also said not guilty. Former commissioner Erin Kenny has pleaded guilty.

State Beef Producers Wary, Concerned

But No Panic Within the Industry,
No Mad Cow Disease in the Silver State

At press time, there is one cow in the United States that has been infected with what is known as Mad Cow Disease, Bovine Spongiform Encephalopathy. Several cases have been suspect in Canada, and the disease destroyed the beef industry in Great Britain. Nevada is home to half a million head of beef cattle and close to 50,000 head of dairy cattle, an industry that provides a livelihood for thousands of people.

The federal government is desperately trying to find the source of the disease, and what herds it may have been with. According to the latest information from the agriculture department, the cow in question was born in Canada. The herd it was part of in Washington has been given the death sentence by agriculture officials.

The disease is described as a brain wasting disease, usually transmitted through feed supplies, and what makes it difficult to control is its very long incubation period, that is, the time between infection and when the disease is noted. The incubation period for mad cow disease is four to five years, so what the officials are looking for is where that cow might have been in 1999.

At this time, no beef is being imported into Nevada, and several countries around the world have stopped importation of beef from anywhere in the U.S. Nevada ranchers are saying they are already feeling the impact of the bans on the national and international beef market. One northern Nevada rancher has said if he wanted to sell his beef right now, he would have a hard time finding a buyer.

The Nevada Cattlemen’s Association, is keeping a close eye on the markets, and is helping ranchers to stay informed as well. The Nevada State veterinarian, David Thain, has been quoted as saying “...the Nevada Agriculture Department will do whatever is necessary to protect Nevada’s cattle industry.”

Bio Terror Air Sensors in Clark County Create False Reports of Possible al-Quaida Attack

Nevada’s Homeland Security boss, Jerry Bussell requested air monitoring devices for Nevada’s largest population center months ago, he says, and apparently their delivery just as the nation went on Orange Alert has led to some wild speculation by the national press.

The Washington Post and MSNBC both reported that Las Vegas was a target of air craft terrorism, possibly by way of Air France. Clark County Sheriff Bill Young denies the Clark County area has ever been a target. “It’s absolutely false,” he said.

Bussell and others in the silver state believe that the Air France airplanes that were supposedly a part of the al-Quaida threat were going to target Los Angeles, not Las Vegas. The flights come across Hudson Bay and eastern Canada, dip south through Minnesota, then head southwest toward Los Angeles. The only other big city, homeland security officials have pointed out is Las Vegas.

Apparently the cause of the Orange Alert was the possibility of terrorists hijacking an Air France airliner. According to Bussell, Nevada Governor Kenny Quinn spoke with Homeland Security head Tom Ridge just a day before the national press reports, and Ridge had said nothing about Las Vegas being a current target.

Homeland Security has said in the past they believe al-Quaida has considered Las Vegas as an attractive target. They consider it a bastion of western lewdness and excess. There have been no verified threats according to state officials.

State Division of Investigations Involved In
Grand Jury Probing of Campaign Finances

by Johnny Gunn

An investigation begun in April of 2002 is coming to a head in Las Vegas as a grand jury is looking into the campaign finances of Las Vegas City Councilwoman Janet Moncrief, finances that might be about $30,000 shy of what the official campaign reports filed with Nevada’s Secretary of State’s office. Allegations of fraud have been circulating since August, and Secretary of State Dean Heller called on the Nevada Division of Investigations to look into the case.

The division has confirmed that witnesses have been called to testify before the Las Vegas Grand Jury, but a representative declined to discuss the matter fully. Moncrief has not been subpoenaed.

According to reports from Clark County, the Moncrief campaign hired teenagers to canvass neighborhoods during the campaign, and was paying them as much as $7.00 per hour. Several of the workers indicated they made well over $1,000 during the campaign. Investigators feel that about $30,000 was paid to the youngsters, in cash, during the campaign. None of that money is shown on any campaign finance reports turned in by the campaign.

Moncrief herself has been quoted as saying, “...we paid them, I don’t remember how,” while her campaign manager Tony Dane has said she gave him cash to pay them.

If this turns out to be true, it also appears that many of the youngsters were paid without taxes or social security being withheld. Many of the youngsters were paid between $50 and $80 per day in cash, and several said they worked as many as 12 to 15 days during the campaign.

Along with the $30,000 discrepancy, the grand jury might also be looking into allegations that Moncrief, gaming figure Bob Stupak, and a primary election foe of Moncrief may have been involved in distributing allegedly illegal mailers. Stupak is not listed as a Moncrief contributor, however Peter Christoff, the third member of the group, has said he helped send campaign mailings under false names, and it’s alleged that Moncrief and Stupak were ultimately responsible for those mailers.

Although she hasn’t issued any official statements, Moncrief has said she isn’t aware of any illegal activities in her campaign. The state Investigations Division is continuing its investigation according to Secretary of State information people.

Republicans Hold the Edge, But Non Partisan Voters Will Determine Most Nevada Winners

Secretary of State Dean Heller has released the statewide voter registration numbers, and his figures indicate Nevada is less than 100,000 voters from the one million registered voter’s mark. There are 909,948 registered voters in the state with 70 percent of those living in Clark County. The differences between the two major parties is less than 10,000 statewide.

The 2004 election cycle will be one of the more active with a presidential race, congressional seats up for grabs, and always a battle for control of the state assembly and senate. Republicans hold an edge at 375,529, democrats just behind at 367,299, and non partisan registration, possibly the voters with control over much of the ballot this year, standing at 138,757.

There are other parties of course. Independent American party has 17,592 registered, Libertarians have 5,178, Greens at 2,695, Natural Law with 961, the Reform Party has 196, and myriad splinter groups have 1,741 registered voters.

It’s in the congressional districts where the numbers could play a major role in who goes to Washington and who goes to Carson City. In Congressional District #1 (Clark County), there are 116,138 democrats, 81,258 republicans, and 36,866 non partisan voters registered.

Congressional District #2 (parts of Clark County and the rest of the state), there are 156, 598 republicans, 115,356 democrats, and 49,107 non partisan registered voters.

And Congressional District #3 (Clark County), has 137,618 republicans, 135,783 democrats, and 52,764 non partisan potential voters.

For a break down by county, by assembly and senate districts, go to Heller’s web site: http://secretaryofstate.biz and click on the elections division button.

More Good News On the Economic Fronts

Six months after the legislature finally heard the final bell ending the 2003 session, the taxation committees and others working to implement the $833 million tax measure that was passed, the law has almost become workable. At the same time, figures released by the state Taxation Department indicate a rise in taxable sales statewide of almost 11 percent, not related to the new taxes.

The Nevada Gaming Commission has approved provisions to the entertainment tax portion of the large money bill, and it appears as though it will finally be implemented. The entertainment tax is so unwieldy this reporter isn’t going to try to explain. The State Taxation Department will release guidelines, and the Observer will publish them at that time. The entertainment tax is expected to raise an additional $110 million per year for the general fund.

State Taxation released figures just before Christmas that indicate the taxable sales for October, 2003 exceed October, 2002 by 10.8 percent statewide. Sales of over $3 billion were reported statewide. All is not rosy statewide however. While Clark and Washoe posted gains, several rural counties were facing negative numbers.

Storey County was one of six counties to post declines in taxable sales. Storey was down 15.4 percent, having taxable sales of $3.5 million. Esmeralda, Lander, Lincoln, Pershing, and White Pine Counties all posted less in taxable sales for this October compared to October, 2002.

The Taxation Department says taxable sales are up 11.3 percent for the first four months of this fiscal year, beginning July 1. September’s gain was 10.3 percent, there was a 10.3 percent increase in August, and July posted a gain of 9.3 percent.

THE BUZZ AROUND THE SILVER STATE

Our Correspondents

Influenza Has Killed Two in Nevada

Thirteen of Seventeen Counties Report Cases

(Carson City) ... State Health Department officials have confirmed two deaths due to influenza so far this winter, and most say the flu season will continue into March. One person has died in Clark County, another in Carson City.

Indications are that this year’s outbreak is more severe that last year’s, and so far, confirmed cases have been reported in all but four Nevada Counties.

Supplies of vaccine remain low, but for those most in need, that is, the very young, elderly, and physically weak.

White Pine County to feature no-cost medical for students

(Ely) ... White Pine County school district has received a grant for $100,000 that can be used to provide students with physical examinations, dental and eye care, and other health related benefits. Parents should contact their child’s school to pick up a voucher.

Dean Roberts of the district said all children enrolled in White Pine County School District are eligible for this assistance. It isn’t based on anything other than the child being enrolled in the district.

Elko County Justice to run for justice

(Las Vegas) ... Another voice will be heard in the race to unseat Supreme Court Justice Deborah Agosti. Las Vegas Justice of the Peace Douglas Smith has thrown his robes into the fray. He has been justice of the peace since 1995. He makes the second candidate to join the race. Agosti has said she will stand for reelection.

John Mason, former state Republican Party chairman announced his candidacy in November. Mason lives at Lake Tahoe.

Washoe County Family Court judge pleads guilty in DUI charge

(Reno) ... District Judge Charles McGee has pleaded guilty in Reno Justice Court to driving under the influence. McGee helped found the county’s family and drug court program and has sat on the district court bench since 1984.

Judge McGee placed himself in a rehabilitation center from April to June of this year. He had said on returning from the Betty Ford Center in Rancho Mirage, CA that his drinking had reached an uncontrollable level after the death of his father a year ago.

His blood alcohol level was about twice the 0.08 level considered by the state to be the intoxicating level as far as driving a vehicle is concerned.

Judge McGee served two days in jail beginning the day after Christmas, has been ordered to pay $700 in fines, must attend DUI victim impact school, and submit to breathalizer tests daily for at least six months. He also has been ordered to attend Alcoholics Anonymous meetings five days a week.

More than one knew what the Nye County Courthouse in Belmont looks like

(Nye County) ... There were several wrong answers, more than right answers actually, but at least those who took a chance did so with humor. The first person in with the right answer was Reno PIO Steve Frady:

“You’re standing in front of the former Nye County Courthouse in Belmont where Charles Manson, among others, is alleged to have scratched his name on the walls of the jail. The site includes about one acre now administered by the Nevada State Parks Division. The courthouse is under a long-term stabilization and restoration effort by the state. Belmont is a great place to visit with many great photo opportunities as is neighboring Manhattan. Travel north on the dirt road through Monitor Valley and you will see antelope, the rock formation for which the valley was named, hot springs, and numerous ranches.”

Thanks Steve, and I think the Nye County Chamber of Commerce just might pick up on your paragraph. Another contestant who loves that part of Nevada is free lance travel writer Don Cook:

“Since I do stories for travel magazines, I should exclude myself; but since you win nothing, what the heck! It’s Belmont, NV, of course. The name of the saloon is Dirty Dick’s Belmont Saloon, and the guy running the B&B will be starting an authentic overland stage ride between Belmont and Manhattan, NV (which coincidentally, does have power), next spring. Cool Pic.”

Battle Mountain school teacher Buckey Gandolfo picked the right answer, but since he grew up in Austin, he would not have received a passing grade if he had muffed that answer.

Others thought maybe the beautiful old building was in Eureka, another said Pioche, and nobody picked Beowawe. We’ll do this again, sometime soon. Thanks to all who participated.

Wendover, Utah Might Yet Become Wendover, Nevada.

(West Wendover) ... A meeting scheduled for January 9, 2004 in the West Wendover, NV Library is designed to brief a legislative panel on the status of a plan to move the Nevada state line just a tad eastward to encompass the town of Wendover, UT, and make the two towns split by the state line one Nevada entity. The legislative subcommittee will be chaired by state Senator Dean Rhoads, R-Tuscarora, and it’s expected there will be representatives from both states in attendance.

The meeting is scheduled for 10:00 a.m., Mountain Standard Time. Both states have to pass bills to accept the changes in the state line, and then a bill must be passed in Congress before the two towns can be made one. A twin cities advisory ballot measure showed mostly support on both sides of the state line for the annexation.

In Wendover, UT, the vote was 110 in favor and 61 opposed, while in West Wendover, NV, 348 favored the plan and 191 opposed it. Members of the Elko County Commission along with Elko County Chamber of Commerce are expected to be in attendance.

Schools, voting districts, DMV records and others will affect citizens of the area while the governments of Tooele County, UT and Elko County, NV will face major changes. Tooele County will expect to be reimbursed for work done on the airport, and it’s expected the city of Wendover, NV, if it comes about will take on the debt of the current Utah city.

Among those opposed to the move is Nevada Senator Harry Reid (D), who says new casinos will be built in what is now Utah and take business away from existing casinos, the largest of which is owned by the Peppermill concerns of Reno.

Besides Rhoads, other member of the legislative committee are Assemblyman John Carpenter, R-Elko, and Senator Michael Schneider, D-Las Vegas.. The legislature passed a resolution in 2003 to conduct a feasibility study of the annexation proposal. A report is expected by September, this year.

No More Sin City?

(Las Vegas) ... The Las Vegas Convention and Visitors Authority just doesn’t want that moniker around any longer. They do not want “Sin City” to be the defining name for the area. Some have said their current advertising campaign, dubbed “Vegas Stories” is too risque as well. The term “Sin City” was recently used in a state tourism campaign prepared by advertising agency DRGM. One print ad called for a “Guy’s Week Out” that included several days spent in the outdoors, referred to as “God’s Country,” and another few days followed by a “Sin City chaser.”

Oh, dear.