Esposito may be target in FBI probe

Only a few weeks ago, Nevada Republican Party Chairman Michael McDonald and his pal Brad Esposito said they were eager to tell their side of the story in the $2.2 million Miracle Flights for Kids loan scandal.

Now Esposito is prepared to invoke his Fifth Amendment right against self-incrimination in an ongoing civil litigation and, through his attorney Christopher McCullough, admits he believes he's a possible FBI target in a criminal investigation.

In a motion for protective order filed Sept. 17, McCullough argues that his client should receive up to a six-month delay before being deposed under oath in the civil case brought by attorney Peter Christiansen against current and former owners of Med Lien Management, the outfit that in April 2013 scored and quickly ran through a $2.2 million loan from the longtime local children's charity. Miracle Flights was promised high-interest returns in exchange for the short-term loan, which was made while McDonald served on the charity's board and was a secret owner of the lien company.

Esposito and McDonald blame former partner Lincoln Lee for the financial collapse of the company and the squandering of the loan proceeds, but accounting documents produced during the discovery process tell a different story. His denials aside, McDonald is listed as receiving a $200,000 referral fee for making the deal. He also received monthly $10,000 payments, which he has called a consulting fee for government affairs work.

"Apparently at the behest of the Plaintiff the FBI was contacted and has now usurped jurisdiction in this matter," McCullough writes. "... Defendant Brad A. Esposito has been unable to determine whether he is a target of the investigation but based on the conduct of the Plaintiff and he allegations asserted thus far in this matter, it is reasonable to assume that he is in fact a target of the investigation."

It's an intriguing statement. It's also hard to confirm, as the FBI isn't in the business of publicly discussing the status of its cases.

With a deposition set for Oct. 5, Esposito is seeking a delay well into next year.

McCullough writes, "... there is currently an FBI investigation ongoing into this matter. If Mr. Esposito is a target of that investigation anything he says in his deposition could be used against him in a subsequent criminal proceeding. Thus Mr. Esposito would be forced to asset his Fifth Amendment privilege against self-incrimination to any substantive questions that might be used in a parallel criminal proceeding."

Meanwhile, McDonald is in the process of being added to the Med Lien suit and has been subpoenaed in the civil case.

Let's see if the loquacious chairman of the state Republican Party decides to hold court under oath.

XTREME MYSTERY: It didn't take a futurist to see Wisconsin Gov. Scott Walker's presidential campaign was crashing around him even as he attempted to rally supporters last week at XTreme Manufacturing in Las Vegas.

The line to greet him was short. People stayed away in droves for the conservative Republican's drop-in at the local forklift factory on Bonanza Road.

This week, Walker shut down his campaign and limped back to Wisconsin. That's no sin.

As he did so, he tried to drop a hint to other bit players on the raucous GOP stage dominated by Don Rickles impersonator Donald Trump.

"I encourage other Republican presidential candidates to consider doing the same, so that the voters can focus on a limited number of candidates who can offer a positive, conservative alternative to the current front-runner," Walker said.

But, let's see, Walker dropped out after visiting XTreme Manufacturing. In 2012, Newt Gingrich visited the Don Ahern's company, saw his shadow and returned to his burrow.

Coincidence? Hey, the mystery continues.

Have an item for Bard of the Boulevard? Email comments and contributions to jsmith@reviewjournal.com or call 702-383-0295. On Twitter: @jlnevadasmith.