Sunday, June 01, 2003
Copyright © Las Vegas Review-Journal

McDonald `subject' of FBI political corruption probe

Experts say councilman could become witness or `target'

Las Vegas Councilman Michael McDonald has been informed that he is a "subject" of an FBI political corruption probe. McDonald is on Tuesday's ballot seeking re-election in Ward 1. REVIEW-JOURNAL File Photo

Las Vegas Councilman Michael McDonald repeatedly has said he is not a "target" of the political corruption investigation that saw dozens of FBI agents raid two topless clubs on May 14.

But on Friday, his attorney confirmed that the FBI on the day of the raids gave McDonald a letter informing him he is a "subject" of the probe.

The terms might appear similar to the layman, but as legal terms their definitions are quite different.

Attorney Richard Wright, a former federal prosecutor who represents McDonald, said target status is pretty clear. "That's putting a person on notice we are after you and you're in our cross hairs."

He said subject status is generally more confusing, because the term is "ill-defined and used differently."

"You take comfort in being a subject. You're not in the cross hairs," Wright said. "But evidence may evolve that shows some liability."

Former federal prosecutor Stan Hunterton, now a criminal defense attorney, agreed that subjects have the potential to become targets.

But Hunterton did not share Wright's view that McDonald's status as a subject is cause for comfort. Hunterton said McDonald should be "very worried" about his subject status.

"Today's subject easily becomes tomorrow's target," said Hunterton, a federal Strike Force attorney in Detroit and Las Vegas from 1974-1984. "In my own experience, once you have become a subject, you were either going to end up as a witness or a defendant."

The U.S. Attorney's manual says: "A `target' is a person as to whom the prosecutor or the grand jury has substantial evidence linking him or her to the commission of a crime and who, in the judgment of the prosecutor, is a putative defendant."

The manual says: "A `subject' of an investigation is a person whose conduct is within the scope of the grand jury's investigation."

Even FBI agents can confuse the status. One source said a television reporter shortly after the raids identified McDonald as a "target" because an FBI agent thought the letter delivered to the councilman was a target letter. "Agents were confused about the terminology and what it meant and in good faith thought it was a target letter," the source said.

Both subjects and targets are advised of their rights against self-incrimination and the right to an attorney. Both have the right to testify before the grand jury.

Hunterton, now in private practice, is not representing anyone involved in this case.

"A lot of attorneys in this investigation take great solace saying their clients are not targets. But that's reasonably meaningless. For instance, if a prosecutor has not put witnesses or tape recordings before a grand jury, they might say with a straight face, `You're not a target.' But that may be because the evidence hasn't been presented to the grand jury."

The federal grand jury is expected to begin hearing testimony in Las Vegas on Tuesday, which is Election Day. McDonald is on the ballot, seeking re-election to the Ward 1 seat on the Las Vegas City Council against challenger Janet Moncrief.

The FBI on May 14 searched sites in Las Vegas and San Diego that are connected to topless club owners Mike and Jack Galardi. Agents also searched the offices of three San Diego city councilmen.

The warrant authorizing the search of Jaguars and Cheetah's in Las Vegas sought evidence of gifts or payments made to McDonald; County Commission Chairwoman Mary Kincaid-Chauncey and her husband, Robert Chauncey; former County Commissioner Dario Herrera and his wife, Emily; former County Commissioner Erin Kenny and her husband, John; and unidentified building inspectors.

Kenny and Kincaid-Chauncey have acknowledged they are targets of the investigation.

Since the searches, McDonald has said he is a consultant for Mike Galardi on land development and zoning issues.

Of all the people mentioned in the search warrant, McDonald is in the most politically vulnerable position.

The search warrants were executed just three days before early voting started in Las Vegas, and the investigation has dominated the news for the final three weeks of his re-election effort.

Wright said he believes that federal authorities in the past have made efforts to avoid interfering one way or another in an election. So he said for now, "I'll withhold judgement" about the timing of the searches.

"There may be a legitimate law enforcement explanation for the timing," he said. "I hope they have a good explanation."

Hunterton said when he was a prosecutor, the Department of Justice policy was "if something was going to be politically sensitive, whether it was issuing a subpoena or indicting a public official or executing a search warrant, the policy was to put aside the politics. Don't time it before or after."

Federal authorities "can't be blind to the fact this is going to have some political impact," Hunterton said.

If he had been in charge, Hunterton said he would have postponed the raid "unless I felt there was some immediate danger of the disruption of evidence."