Whittemore convicted of making unlawful campaign contributions to Reid

RENO — Harvey Whittemore, once a high-powered lobbyist who became a fixture in Nevada politics, was convicted Wednesday of unlawfully funneling more than $133,000 in campaign contributions to U.S. Senate Majority Leader Harry Reid.

Following roughly seven hours of deliberations over two days, a federal jury found Whittemore guilty of three felony counts: making excessive campaign contributions, making contributions in the name of another, and causing a false statement to be made to the Federal Election Commission.

The jury reported that it was hopelessly deadlocked on the fourth count, making a false statement to the FBI. Senior U.S. District Judge Larry Hicks declared a mistrial on that count. Prosecutors would not say afterward whether they would seek to try Whittemore again on the charge.

Hicks set a Sept. 23 sentencing for Whittemore, who was allowed to remain free on his own recognizance.

Whittemore, 59, an attorney who became a wealthy developer after giving up his lobbying career, showed no emotion as the guilty verdicts were read at the close of the two-week trial.

But at a news conference at his lawyers’ offices, a confident Whittemore remained defiant, promising an appeal.

Flanked by his wife, Annette, and his team of lawyers from the Gordon Silver firm, he said he would not discuss his conviction until the case is “completely resolved.

“I’m confident that we will prevail and then I will say to everybody here ... and tell everybody the complete and true story of exactly how this happened, why this happened, who was behind this and how it got started.”

Lead defense lawyer Dominic Gentile said he hoped to pursue a number of appeal issues, mostly tied to “mistakes” Hicks made during the high-profile trial.

“At the end of the day, I think we will prevail,” Gentile said. “I feel strongly about it.”

Gentile revealed that Whittemore turned down a plea offer from prosecutors because they wanted him to plead guilty to a felony charge.

“If we had to do it over again, Mr. Whittemore would not plead guilty because he is not guilty,” Gentile said.

Outside the courthouse, First Assistant U.S. Attorney Steven Myhre read a brief statement on behalf of himself and co-prosecutor, Justice Department lawyer Eric Olshan, thanking the jury for its verdict.

“The jury has spoken and it is our hope that its verdict today sends a strong message to the community that violations of campaign finance laws are serious offenses that will be prosecuted to the fullest extent of the law and that those who violate these laws will be held accountable,” Myhre said.

“These laws exist to protect the election process from undue influence and to provide transparency to the voting public.”

From Las Vegas, U.S. Attorney Daniel Bogden added: “Campaign laws exist to level the playing field. The public deserves to know that these laws are not just on the books, and that persons with power and money who abuse the system for their own benefit will be prosecuted.”

Acting Assistant Attorney General Mythili Raman, of the Justice Department’s Criminal Division, also weighed in from Washington.

“The cornerstones of our campaign finance laws are contribution limits and transparency, and Mr. Whittemore’s crime was designed to undermine both,” Raman said. “Today’s verdict demonstrates our resolve to aggressively pursue those who use illegal tricks to corrupt our democratic process.”

Whittemore faces a maximum five years in prison and $250,000 fine on each of the three counts, but under federal sentencing guidelines he is not likely to receive anything close to those amounts.

Myhre would not say whether prosecutors planned to pursue prison time for Whittemore, but Gentile said he would argue for probation at sentencing.

Whittemore was indicted in June following an intense FBI investigation into his 2007 fundraising efforts for Reid, his longtime friend. The investigation was first reported by the Review-Journal.

Federal prosecutors alleged that Whittemore met with Reid at an upscale restaurant on the Strip in February 2007 and promised to raise $150,000 for the Nevada Democrat’s re-election campaign.

Whittemore hatched the scheme days before the March 31, 2007, campaign contribution deadline without Reid’s knowledge in a desperate attempt to fulfill his promise to the senator, one of the most powerful members of Congress, prosecutors alleged.

Whittemore was accused of giving money to 29 family members and employees of his former development company, Wingfield Nevada Group, and then using them as “conduits” for illegal contributions to Friends for Harry Reid.

At the time, Whittemore was developing Coyote Springs, a master-planned community in Southern Nevada, and needed congressional help to overcome government hurdles.

He had a falling out with his business partners in Wingfield Nevada, Thomas and Albert Seeno, and eventually left the company. The Seeno brothers, through longtime Las Vegas defense attorney Richard Wright, later tipped off the FBI to the Reid contributions while embroiled in civil litigation with Whittemore.

Prosecutors during the trial called an array of Whittemore family members and employees who acknowledged on the witness stand, some reluctantly, that Whittemore had provided them with the money to contribute to Reid’s campaign.

A handwritten note from Reid thanking Whittemore for the contributions was introduced by prosecutors into evidence. In the note, Reid called Whittemore his “friend for today and for all tomorrows.”

The prosecution alleged that Whittemore duped the Reid campaign committee into believing the contributions came from the individuals. Reid was not called to testify at the trial. And he didn’t return phone calls to his office seeking comment Wednesday.

Whittemore actively participated in his defense but did not testify. 

Gentile told the jury in his closing argument that Whittemore did not “knowingly” violate campaign contribution laws and did nothing to hide his efforts to raise money for Reid. Whittemore, an experienced campaign fundraiser, would never put his family and trusted employees in “harm’s way,” Gentile argued.

Defense lawyers paraded a long line of character witnesses before the jury, including retired U.S. District Judge David Hagen and former longtime Nevada Supreme Court Justice Bob Rose. Hagen later showed up for closing arguments in the case.

In his closing remarks, Olshan told the jury that Whittemore was the “ultimate insider” when he schemed to break the law and get the Reid campaign the money in March 2007.

“Harvey Whittemore was king of the hill,” Olshan said. “He never imagined that he would get caught. Not in a million years did he think he would be sitting here today.”

Contact reporter Jeff German at jgerman@reviewjournal.com or 702-380-8135. Follow@JGermanRJ.