Wednesday, February 16, 2005
Copyright © Las Vegas Review-Journal

GOP operative accused of theft

Criminal complaint alleges embezzlement of most of $25,000

The young Nevada man designated to chair the upcoming 2005 Young Republican National Convention in Las Vegas has been accused of embezzling registration fees from around the country to pay off bar tabs, personal loans and credit card debts.

Nevada's national committeeman for Young Republicans filed a criminal complaint Monday with the Reno Police Department alleging Nathan Taylor received more than $25,000 in registration fees and donations through his corporation, YRNC 2005, and spent almost all of it in the past year for personal use.

Taylor interned in Gov. Kenny Guinn's office during the 2003 Legislature and has worked for former Republican state Sen. Mark James and in Las Vegas City Hall, where he worked on projects for then-Councilman Michael McDonald.

He was actively involved with the state's Young Republicans when Nevada won the bid to host its first-ever national convention for the organization.

"The reason we turned this into the Reno police is because from the bank statement we have in hand, we're afraid this corporate account has turned into his personal slush fund," said Joe Brezny, Nevada's Young Republican National Committeeman, who filed the criminal complaint.

Reno police spokesman Lt. Ron Donnelly said the case will be turned over to the department's fraud unit. The sergeant in that unit was unavailable late Tuesday for comment.

The complaint contains an affidavit from Kriston Whiteside, president of the UNR College Republicans, alleging Taylor asked her to write a check from YRNC 2005 to pay for his birthday party at a bar, among other expenses.

In a letter to Reno police, Arjun Dhingra, state chairman of the Young Republicans, states roughly $25,000 received from 200 individuals around the country for the July 6-10 convention at Mandalay Bay is gone.

The complaint also includes a bank statement showing withdrawals from the YRNC 2005 account at Bully's bar in Carson City, at a PF Chang's restaurant, at Shell Oil, at Mandalay Bay and twice for $200 in cash during a 30-day period.

"Nathan Taylor is no longer authorized to plan or engage in any fund-raising activities related to the 2005 Young Republican National Convention," said Michael Mack, chairman of the Washington, D.C.-based Young Republican National Federation. "The Nevada Young Republicans now hold the contract and the sole rights to that event. The decision was made for internal reasons that I'm not at liberty to discuss at this point."

Dhingra's letter to the police states Taylor and Mack "went back and forth on the subject of an audit, but Mr. Taylor never produced any financial information whatsoever."

Taylor, 29, who said he is a political science student at the University of Nevada, Las Vegas, denies all accusations.

"I'm sure you understand it's politics," Taylor said. "There's a personal grudge against me that is being portrayed against me and that corporation."

Taylor said the political tide inside the Young Republicans organization shifted when he announced he would not be endorsing either candidate in the upcoming election for national chairman set for the convention.

"After I did that there were people upset that I didn't support their candidate," Taylor said. "I received all kinds of letters and things from all over the country telling me to step down."

Taylor said he did not know why his fellow Young Republicans would file a criminal report with police simply because of his neutrality in a national election.

"I believe that if I remain chairman of this convention that there are individuals who believe that they would not be able to have control over the election," Taylor said. "They're willing to do anything and whatever it takes. I actually think it's extraordinary to take these steps to attack my name. It's politics of personal destruction."

Whiteside said she first suspected Taylor of misusing funds last year, when as a volunteer on his convention committee, she noticed expenses for bar tabs and gasoline. She also said he had used money to repay a cousin for a personal loan.

"I felt that Nathan was mismanaging funds and when I brought it to his attention, I was fired," Whiteside said. "I have nothing against Nathan, I was just concerned for the convention."

Whiteside also said the convention account has "minimal funds" remaining, and she is worried the convention's success is in jeopardy.

Taylor was sent a memo Feb. 2 from the Nevada Young Republicans "revoking his membership," Dhingra said in his letter to police.

"We didn't want to have anything to do with it, with him, or to be taken down by him," Dhingra said in an interview.

A subsequent Feb. 9 memo sent by the National Young Republican Federation to Taylor and other National Federation board members states Taylor no longer has any right to plan the convention.

"You should all realize that the convention is far behind in expectations and obligations required for bid specifications," Mack writes in that letter.

He also added he was confident the Nevada Young Republican Federation should be able to resolve the issues.

Dhingra told police he is concerned Taylor is still actively soliciting funds for the convention.

In a message from the chairman still posted Tuesday on the YRNC 2005 Web site, Taylor urges fellow young Republicans to register for the convention.

"I'm looking forward to seeing all of you next summer, we will have the time of our life," the message reads with a photo of Taylor in front of the backdrop of the Strip.

He concludes the message with his e-mail address and the sign-off: "Vegas Baby, Vegas!"

"The fact that he's still going forward seeking registrations makes it more egregious," Dhingra said in the interview.

More than 200 registrants have already paid anywhere from $99 to $149 for convention fees, Brezny said.

Taylor acknowledged that in addition to the registration fees, his corporation also accepted donations from Nevada's leading GOP political players for the convention.

Guinn's spokesman, Greg Bortolin, said the governor has supported Taylor's efforts to bring the convention, but was unaware of any criminal complaints or Taylor's removal as chairman.

Taylor has also solicited funds from state Senate Majority Leader Bill Raggio, R-Reno, and from Bruce James, the Nevadan serving as the U.S. printer, and from Frank Fahrenkopf Jr., president and CEO of the American Gaming Association, sources said.

Asked if he ever used donations or registration fees for personal expenses, Taylor said: "Absolutely not."

He said he did not have bank statements readily available, but said all the money was spent to prepare for the convention.

Taylor said the bar tabs were related to special events he hosted in Washington, D.C., New York, Chicago and Austin, Texas, last year marketing the 2005 convention.

"There were travel expenses, airplanes and cab rides and some of the meals were expensed," Taylor said. "All of the costs were associated with putting on the convention."

He said the credit card payments from the corporate account were made to pay for fees the convention incurred to set up merchant accounts with credit card companies to accept registration funds over the Internet.