County licensing official changes jobs

A Clark County business-licensing supervisor who blurted into a cell-phone recorder that he gave a resort nightclub preferential treatment was transferred to the county coroner's office where he continues to earn a $93,000 annual salary.

While being questioned by two local restaurant owners in January, Derek Dubasik said he bumped the 40/40 Club at the Palazzo ahead of other businesses awaiting temporary liquor licenses.

George Harris, co-owner of La Madonna Mexican Restaurant, recorded several minutes of a heated conversation that he and his partner, Irma Aguirre, had with Dubasik.

Harris said he was puzzled that the ultimate consequence for Dubasik's admitted favoritism was being moved to a different job in which he earns the same handsome wage.

"A guy who's never worked at the coroner's office," Harris said. "How is he qualified? I have no idea."

Dubasik did not return calls from the Review-Journal. In a statement to KLAS-TV, Channel 8, he said his job transfer was voluntary.

Dubasik was formerly the assistant manager of business-license operations. His job title now is "principal management analyst" for the coroner.

When asked whether officials considered firing, demoting or formally reprimanding Dubasik, county spokesman Dan Kulin said state law prevents the county from disclosing personnel matters.

A temporary liquor license, also known as a privileged license, allows businesses to serve alcohol while they obtain a permanent license.

On the recording, Dubasik told Harris and Aguirre that the temporary liquor licenses for the 40/40 Club and other businesses were processed a month earlier than normal:

Aguirre: "Why?"

Dubasik: "Because I was asked to do it."

Aguirre: "How is that fair to everybody else experiencing a hardship?"

Dubasik: "I'm not saying it was fair. I'm just saying there's no way I can be fair."

Harris: "You're going to end up losing your job."

Dubasik: "I'm not going to lose my job over this, OK, because I haven't done anything unlawful."

Dubasik's assertion proved true.

Harris argues that the 40/40 Club got its temporary license faster so it could open by New Year's Eve. Meanwhile, his paperwork sat around for months before his application was put in the system. He was then put on a 90- to 120-day waiting list and had to pay $2,700 a month on a space that generated no income, Harris said.

A liquor license is essential before a restaurant can open and be competitive in Las Vegas, he said. Last year, Harris said the county would issue a temporary license in 10 days.

County officials said the incident spurred an internal investigation that disproved Dubasik's comments about favoritism.

"We looked into this and found no evidence of preferential treatment," Kulin said.

The county received a liquor-license application for the 40/40 Club on Aug. 13. A temporary license was granted on Dec. 29, according to a timeline put together by county staff.

A liquor-license application for Harris's restaurant came in on Dec. 6.

"We area able to confirm that the licensing process has not been compromised, and that all applications for privileged licenses have been processed fairly," Jacqueline Holloway, director of the business license department, said in a statement.

Applications have increased by 36 percent since 2002, Holloway wrote, and the department is working to cut the processing time in half.

Harris said the county's timeline is flawed. The corporation that owns the 40/40 Club had to reapply in December for the liquor license after the company restructured, he said.

Harris said he got his license on Jan. 27 after raising a fuss. At that time, the department had two workers handling all applications, creating pressure on managers like Dubasik to play favorites, he argued.

"I threw a hissy: 'This isn't right. This isn't fair,'" Harris said.

Contact reporter Scott Wyland at swyland@reviewjournal.com or 702-455-4519.