Saturday, April 03, 2004
Copyright © Las Vegas Review-Journal

ETHICS ISSUE: Mayor ready for fight

Goodman defends conduct; hearing scheduled for May 12

Las Vegas Mayor Oscar Goodman blasts the Nevada Ethics Commission on Friday during a news conference outside City Hall. Photo by Cariño Casas Mayor Oscar Goodman on Friday accused the executive director of the Ethics Commission of having ulterior motives in pursuing an investigation. The mayor promised some big answers in his defense at his hearing, saying: "People better not sleep." Photo by Cariño Casas

A defiant Mayor Oscar Goodman taunted state ethics officials Friday for ordering a full hearing on a complaint against him, angrily defending his conduct as the city's elected leader.

"I want to make it very, very clear that as the mayor of the city of Las Vegas, I'm going to run the city the way I want to run the city," Goodman said at a hastily called news conference outside rain-soaked City Hall.

A Nevada Ethics Commission panel determined Friday that there is enough evidence to move forward with a full hearing May 12 on allegations that Goodman improperly promoted a cocktail party benefiting his son's business venture.

Stacy Jennings, executive director of the Ethics Commission, also asked the full commission to determine whether Goodman violated state law by accepting and using a Cadillac, endorsing Bombay Sapphire gin and endorsing a contest for Jane Magazine.

Goodman accused Jennings of having ulterior motives in pursuing an investigation and defended the highly public -- and sometimes controversial -- manner in which he serves as mayor.

"If there's anything wrong with that, I'm going to keep on doing it, and I'll have my face in their face as long as I'm the mayor of the city of Las Vegas."

"I believe she has her own agenda," Goodman said.

If found in willful violation of the ethics laws on the issues forwarded to the full commission, Goodman could be subjected to civil penalties of $5,000 for a first violation, $10,000 for a second and $25,000 for a third, according to state statute. Multiple violations also could lead to a District Court proceeding to determine whether Goodman should be removed from office.

Retired Las Vegas auto mechanic and longtime ethics watchdog Bob Rose filed the complaint against Goodman on Feb. 3.

"Whatever they do, I hope they do it correctly," Rose said of ethics commissioners. "I don't wish him (Goodman) ill will, but he has violated the law.

"I'll be glad when I get my say," he said.

The complaint stemmed from a U.S. Conference of Mayors meeting in January in Washington, D.C., when Goodman distributed invitations for a party bearing his name and title to other conference attendees and political officials. He also acted as host for the Jan. 22 gathering and is the featured speaker on a CD product offered by iPolitix. The product measures constituents' political interests.

The company, which paid for the event, is a venture among Goodman's son Ross, Las Vegas City Councilman Michael Mack and iMedia International Inc.

The two-member ethics panel, made up of Bill Flangas and George Keele, voted to proceed with a full review of the iPolitix party concerns. The panel rejected the allegation that Goodman misused his public position as mayor to help his son.

In her report and recommendation to the two-member panel, Jennings wrote: "The executive director believes the opportunity for Ross Goodman, through his company iPolitix, to host a cocktail party with potential clients for the new CD would not have existed had Oscar Goodman not held the office of Mayor. There is no evidence to suggest otherwise."

Jennings found no evidence to support the allegation that Goodman improperly used his office to help his son. Jennings said she found no facts to implicate "any vote, disclosure or abstention" by the mayor that benefited his son's business venture.

During the May hearing, the full commission will examine whether Goodman used his office to obtain or grant unwarranted privileges for his son and his son's business by hosting the party in Washington; and whether he used government time and property to benefit his son by hosting the party.

In his written response to the complaint, Goodman said: "Aware of my trip to Washington for the conference, my son proposed that iMedia and iPolitix sponsor a reception for any attending mayors I might care to invite. I thought it a fine idea, fun for my fellow mayors and an opportunity for iPolitix to make acquaintances and contacts."

Goodman contended in his response that none of the city staff attendees could have been considered potential customers for the iPolitix product, nor could he imagine that any guest felt the slightest pressure to accept his invitation, Jennings said in her report to Flangas and Keele.

"The executive director disagrees, however, that exertion of influence is the gist of the allegation," Jennings wrote. "Rather, the allegation focuses on the use of Mayor Goodman's official position to provide an unwarranted privilege or advantage to his son, Ross."

In a March 16 interview with Jennings, Oscar Goodman said no city resources were used in the planning or execution of the party. Jennings acknowledged as much.

"However, the genesis of the party was, as Mayor Goodman stated, a direct proposal from his son Ross Goodman," she said in her report. "It must be considered that the purpose of the party was to promote the new iPolitix CD. One of the subjects on the CD was Mayor Goodman."

The CD included footage of the mayor in various nationally televised interviews. The interviews were copied from video compilations paid for by the city.

"And the raw footage obtained for the promotional CD was ... provided to California-based representatives of iPolitix ... for their use at no cost," Jennings wrote.

"The tapes are city tapes," Goodman said at his news conference. "I made that very clear. I loaned them overnight. And I would loan them to any one of you that I know. I don't think I did anything wrong as far as that is concerned."

The panel split on the Cadillac, gin and magazine issues, which by Nevada law sends them to the full Ethics Commission for a determination.

The question about the use of the Cadillac, provided by John Tomaras of Cadillac of Las Vegas, is whether the gift, valued at $55,600, could improperly influence Goodman in the discharge of his public duties.

The question about the $100,000 gin endorsement deal is whether the money should be considered a gift in exchange for his endorsement for the product as mayor, called an "honorarium."

Goodman reminded reporters Friday that part of that money was donated to The Meadows School. Goodman's wife, Carolyn, chairs the private school's board of trustees. Those funds, Goodman said, benefited "underprivileged children so they could get a good education. And the city of Las Vegas would get the remainder of the money and be expended on taking care of our homeless situation here."

"I received not 1 cent."

The honorarium question also applies to the magazine contest because the city was paid $2,000 for Goodman's endorsement.

Jennings initially wrote to Goodman asking for information related to a photo of him that appeared in Jane Magazine, the Cadillac lease and the endorsement deal with Bombay Sapphire.

In his written response, Goodman said he was submitting that information in a sealed packet, and he challenged her to open it -- but only if the commission held a public hearing.

"They chose not to do that," Goodman said at his news conference, waving papers emphatically. "They returned the packet to me unopened."

Goodman said Jennings' motives will be exposed in the May 12 hearing. He accused her of acting at the behest of Las Vegas Sun columnist Jon Ralston in pursuing an investigation, saying she is among "envious, jealous little people who are motivated as a result of journalists who are trying to make a name on my bones."

The mayor, a former criminal defense attorney, will defend himself before ethics commissioners.

"I'm the best lawyer I know," he said.

The mayor also promised some big answers in his defense at the hearing, saying: "People better not sleep."

Goodman said the allegations against him regarding iPolitix "are old." He again stressed he'd done nothing wrong.

"I would do it again," Goodman said.