Wednesday, February 25, 2004
Copyright © Las Vegas Review-Journal

Grand jury hears testimony about Moncrief campaign

Steve Miller, left, who said he worked on negative mailers for Las Vegas Councilwoman Janet Moncrief, talks Tuesday to Tony Dane, right, outside a grand jury hearing room downtown.

A grand jury considering allegations of wrongdoing in Las Vegas Councilwoman Janet Moncrief's 2003 campaign heard testimony on Tuesday and adjourned without handing down an indictment.

"We've got some new information we need to follow up on," said Lt. Matt Alberto of the Nevada Department of Public Safety's Investigation Division, the agency in charge of the probe into the councilwoman's successful bid for office. "We'll probably seek to continue it (the grand jury) at a later date."

The decision came after several of Moncrief's former supporters and campaign insiders appeared to testify before the grand jury.

State authorities notified the freshman councilwoman Feb. 12 of their intent to indict her on charges of underreporting campaign contributions and circumventing election laws.

Depending on the charge, candidates who violate campaign laws may be guilty of a misdemeanor, punishable by fines, for acts such as sending out anonymous mailers. Willfully filing false campaign finance reports can bring felony charges. Felony convictions are grounds for removal from office.

Authorities have said they are targeting only Moncrief, whose campaign some allege was carried out with at least $100,000 in unreported donations and expenditures and several anonymous fliers attacking then-incumbent Councilman Michael McDonald.

Moncrief, who has maintained she was unaware of any illegal activity in her campaign, deferred comment to her attorney, Richard Wright. Wright couldn't be reached Tuesday.

The attorney general is overseeing the grand jury proceedings, with participation of the secretary of state's office.

On Tuesday, the grand jury was scheduled to hear testimony from Tony Dane, Moncrief's former campaign strategist; former Las Vegas City Councilman Steve Miller; and Moncrief's former campaign manager and community liaison, Betty Schulte.

"I've got no comments for anyone," Dane said after more than two hours inside the grand jury room.

In the past, Dane estimated a team of teenagers who canvassed neighborhoods during Moncrief's campaign were paid more than $30,000 in cash. Moncrief, however, apparently never reported the payments on finance reports or underreported them by more than $20,000.

The filing of accurate campaign finance reports ensures contributions remain within legal limits. If candidates underreport contributions, supporters can donate more than allowed by law.

Miller, who has said in the past that he worked on negative mailers for Moncrief, gave bystanders two thumbs up as he entered the chambers. He emerged about an hour later in a more sober mood.

"The mood is dead serious," he said of the proceedings. "My hands, they're cold and sweaty and that's unusual for me."

Some of the fliers Miller claims to have worked on were sent anonymously. According to Miller, they were paid for by Moncrief and gaming figure Bob Stupak but never reported.

Schulte's testimony, originally scheduled for Tuesday morning, was postponed until after lunch and then scuttled after officials decided to cut short the proceedings.

"They said I was going to testify, then they said I was dismissed," Schulte said later.

Authorities wouldn't elaborate on what prompted them to halt the proceedings.

Accusations of illegal campaigning were first leveled against Moncrief nearly a year ago by Jim Ferrence, a consultant to McDonald.

In a complaint filed with the secretary of state in April, Ferrence alleged that Moncrief had distributed illegal mailings and concealed campaign expenditures. He also accused her of conspiring with Peter "Chris" Christoff, a primary election foe of Moncrief and McDonald, to disguise her role in financing negative campaign mailers.

He estimated $100,000 had been spent on mailers and had not been accounted for on Moncrief's or Christoff's finance reports.

Ferrence said Stupak, to whom Moncrief has been romantically linked, was the source of the money.

The state probe into Moncrief's campaign officially began in early August when Secretary of State Dean Heller called for a full investigation.

In October, officials began to subpoena witnesses to testify before a grand jury. In December, a grand jury seeking an indictment heard its first testimony.