Russo raps Guinn's record in business

Kenny Guinn, the front-runner in the Republican race for governor, was forced to fend off stinging political attacks from challengers on two fronts Wednesday less than three weeks before the Sept. 1 primary.

Lt. Gov. Lonnie Hammargren, on the brink of withdrawing from the race because of a poor showing in the polls, accused Guinn of being part of a "corrupt" political establishment controlled by the casino industry.

And Hollywood producer Aaron Russo, said to be in the No. 2 spot in the race and gaining on Guinn in some polls, aired a new television ad alleging Guinn was a financial failure during his tenure at the helm of PriMerit Bank and Southwest Gas Corp.

The well-financed Guinn campaign, heavily backed by the casino industry and the business community, called Hammargren's assertions "a desperate attempt by a failed campaign."

Guinn's lawyers also informed Russo they would file a complaint against him with the Nevada Ethics Commission if the "false" ad continued to run.

"Being new to Nevada, you may not be aware that making false statements with the intent to impede the success of a campaign is expressly prohibited by law," Guinn's lawyers said in a two-page letter to Russo pointing out the ad's inaccuracies.

"Should you continue to publish false statements regarding Mr. Guinn and his background, Mr. Guinn will have no alternative but to seek redress from the Commission on Ethics and to exercise any and all rights Mr. Guinn may have under the law for the protection of his good name and reputation."

Copies of the letter were sent to the television stations airing the Russo commercial.

Campaigning in Reno late Wednesday, Russo said he had no plans to pull the ad.

"We have everything documented, so I don't know what could be false about it," he said.

The Guinn campaign, meanwhile, prepared today to launch its first television ad striking back at Russo after months of allowing Russo's attacks to go unchallenged over the airwaves.

The ad, which alleges the states of California and New York have hundreds of thousands of dollars in tax liens against him, portrays Russo as a crazed anti-government radical with no ties to Nevada other than coming here two years ago to run for governor.

Dramatic excerpts from a 1996 video tape Russo made, called "Mad as Hell," are featured in the television spot. The excerpts show Russo, sporting shoulder-length hair and an earring, ranting and raving about the government.

The ad concludes: "Aaron Russo ... Embarrassing to Nevada. Dangerous as governor."

Russo took the shot in stride, saying: "All they're doing is name-calling. It's malicious. When people get desperate, they resort to this kind of behavior."

He said a $126,000 tax lien against him in California was withdrawn after the state acknowledged making a mistake.

Tension in the race heightened Monday, when Hammargren, showing signs his campaign is sputtering, told the SUN that he believed state and local governments in Nevada were "totally corrupt and in the hands of big-money casino people."

On Wednesday, at a Republican women's club luncheon, Hammargren -- who acknowledged that he's considering bowing out -- clarified his remarks.

"It's the process that's corrupt," he said. "It isn't necessarily the casinos. It's the money."

He said it's foolish for people to believe that Guinn could accept $300,000 from one casino company (as Guinn did with Circus Circus properties) and claim it would not affect his judgment.

"I know it would affect my judgment," said Hammargren, who has admitted being "shut out" in his attempts to raise campaign funds from the gaming industry this summer. "So let's cut the crap."

Guinn Campaign Manager Pete Ernaut charged Wednesday that Hammargren has no credibility to criticize Guinn for accepting casino donations.

"It's pretty hypocritical for Lonnie to blame us for taking gaming money when he gladly accepted it four years ago when he ran for lieutenant governor," Ernaut said.

Hammargren, however, said the Circus Circus example is evidence that Nevada may need to follow New Jersey's lead and ban all casino companies from contributing to political campaigns.

The casino industry, Hammargren added, also can afford to pay more taxes in Nevada.

Hammargren again publicly praised Russo, fueling more speculation he planned to throw his support to his good friend before the primary election.

Russo, he said, stands for something, a claim Guinn has trouble making.

"Russo is within striking distance of a startling victory, an upset, which would shake the good old boy establishment to the very bone," Hammargren said.

Much of Russo's hope appears to be hinging on a surprising Review-Journal poll that shows him only 7 points behind Guinn.

The Guinn campaign's latest tracking polls, however, have Guinn up by about 22 points.

Guinn, meanwhile, was to receive another boost to his campaign today with the endorsement of Rep. Jim Gibbons, R-Nev.

The endorsement is seen as an effort to counter claims by Russo and Hammargren that Guinn is a RINO, a Republican In Name Only, who has backed several high-profile Democrats over the years.

Guinn had supported Democratic Gov. Bob Miller over Gibbons in the 1994 governor's race.

Russo, according to the Guinn campaign, does not appear to have registered to vote in the 25 years before he registered as a Republican here in March 1997. Hammargren was registered as a nonpartisan from 1981-1991.

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