Friday, May 14, 2004
Copyright © Las Vegas Review-Journal

NEVADA COMMISSION ON ETHICS: Mayor gets split verdict

Goodman found in violation, though not willfully, on one charge, cleared on three others

Mayor Oscar Goodman and his son Ross Goodman embrace after Thursday's ethics hearing. The commission found the mayor broke state ethics law by aiding his son's company, but cleared the mayor on three other charges. Photo by Jeff Scheid. Mayor Oscar Goodman listens Thursday to the Nevada Commission on Ethics. Photo by Jeff Scheid.

Mayor Oscar Goodman broke state ethics law when he promoted and hosted a Washington, D.C., cocktail party to benefit his son's IPolitix business venture, the Nevada Commission on Ethics ruled Thursday.

The four-member panel deadlocked, thus rendering no decision, on whether Goodman had willfully violated the law that bars public officials from securing "unwarranted privileges" for their family. Had the commission ruled the violation was willful, members could have levied a fine of up to $5,000.

The Ethics Commission found Goodman violated no state ethics law in connection with a Bombay Sapphire Gin endorsement contract, his use of a Cadillac donated to the city and promotion of a contest for Jane Magazine.

The mayor, who had looked on with chin in hand as commissioners debated each of the charges against him, told a supporter who approached as he left the hearing room that he was happy with the outcome.

"I would have preferred not to have a finding of any kind of violation, be it technical or not," the mayor said in brief remarks to the media. "But the fact that it was not a finding of willfulness is something that is satisfying."

The commission found the mayor violated the law by granting his son Ross Goodman and IPolitix opportunities available to the mayor because of his position as head of the city.

IPolitix, which is developing interactive compact discs for political candidates, was a venture among Ross Goodman, Councilman Michael Mack and IMedia International Inc. The company has since folded its operations into IMedia.

The unwarranted privileges included the mayor's informing his son about potential promotional opportunities for IPolitix at a gathering of the U.S. Conference of Mayors, agreeing to host the Jan. 22 cocktail party for the company while attending the conference, and encouraging those he met to attend the gathering and examine the product. The mayor also handed out invitations to the gathering bearing his name and title.

"This privilege would not have been granted to Ross Goodman if he was not his (the mayor's) son," Commissioner James Kosinski said.

The commission, however, found the mayor broke no law by loaning city-owned videotapes from a closet in his office to IPolitix executives. Clips culled from the tapes ended up on a promotional CD the company distributed at the party.

Commissioners decided the mayor hadn't loaned the tapes for promotional purposes.

"Lending the tapes may have created an appearance of impropriety, a lack of impartiality," Commissioner Mark Hutchinson said. But commissioners concluded it had led to no personal gain for the mayor.

Ross Goodman, who testified before the commission on Wednesday, declined to comment on the outcome of Thursday's hearing.

The Ethics Commission couldn't reach a consensus on whether the mayor's IPolitix violation was a willful violation of the law.

During the hearing, a document was produced bearing the mayor's signature and stating he had read and understood the state ethics code.

Democratic Commissioner Caren Jenkins argued, as a result, the mayor's actions on behalf of IPolitix had been willful. Commission Chairman Rick Hsu, a Republican, agreed, adding that the mayor should have grasped how his actions related to the law because he is an attorney. Goodman, a Democrat, is one of the most prominent criminal defense attorneys in Nevada.

Hutchinson, also a lawyer, voted against declaring the violation willful, saying the mayor's actions weren't intentional. And Kosinski, a Democrat, sided with the nonpartisan Hutchinson, citing the mayor's incorrect assumption that the law would apply only if his actions influenced constituents instead of fellow mayors over whom he has no jurisdiction.

"I was sorry they didn't come to an agreement on the punishment," said ethics watchdog Bob Rose, who filed the IPolitix ethics complaint against the mayor.

Though the commission cleared the mayor on charges related to his Bombay Sapphire endorsement contract, promotion of the Jane Magazine contest and use of a Cadillac, Hsu said the issues had warranted review.

"You called these (allegations) silly," Hsu said. "I do not believe these allegations were silly."

Regarding the $100,000 contract to endorse Bombay Sapphire Gin, Hutchinson said, "I see nothing but a benefit to the city."

Half of the fee helped fund Las Vegas' contribution to the Crisis Intervention Center at WestCare Nevada and the other aided needy students at The Meadows School, where the mayor's wife holds the unpaid position of president.

Since the mayor didn't pocket any of the money, the point of concern for most commissioners was the use of city video crews to document a party marking the 2002 endorsement deal.

At a cost of $827, the city produced and mailed to the national media tapes featuring the mayor swilling gin, dancing with Charo and accepting novelty checks.

Communications director David Riggleman testified Thursday, as former mayoral spokeswoman Elaine Sanchez had on Wednesday, that Southern Wine & Spirits of Nevada, which brokered the endorsement deal, had agreed to reimburse the city's costs. Ultimately, the company did not reimburse the city.

"It (the videos) may cross a line of being more of a benefit to personal interests versus the city's," Jenkins said.

Ironically, commissioners cited statements by Riggleman, whom the mayor had attempted to bar from testifying, as influencing their thinking on the city's Bombay Sapphire publicity effort. Riggleman, whom the mayor wanted to exclude because he had read the testimony of other witnesses after ethics officials told him he wouldn't testify, said the city videotaped the gin endorsement event because there was a city connection.

A rift between the mayor's office and the city's communications office was laid bare during two days of testimony. The mayor indicated his office will take over national publicity functions from the communications office. Riggleman said no one has officially informed him of that.

In defending himself against the ethics charges during the past month, the mayor repeatedly said he would aid his son in the same way again if given the opportunity. When asked after the hearing if that were still the case, he said, "I'm not going there."

He added, "I've learned to keep my mouth shut sometimes."

The mayor said he believes the charges haven't damaged his political prospects or his popularity. Since the allegations surfaced, he said, the public has viewed the matter as a father helping his son.

Before getting in his car and departing, the mayor called across the parking lot to Ross Goodman, who was also preparing to leave.

Ross Goodman returned to the mayor's side where they embraced.