Governor candidate faces ethics hearing

The hearing will be just two weeks before the Sept. 1 Democratic gubernatorial primary, in which Jones is the leading candidate.

The commission Thursday decided to investigate the financial relationship between Jones, her husband, Richard Schuetz, and casino executive William Boyd. The case involves the Las Vegas City Council's rejection of a proposed restaurant that Boyd opposed.

One of Jones' opponents for the governor's race, state Sen. Joe Neal, said the decision to proceed with the case will likely cost Jones support in the primary.

"I think anytime anyone has to go before the Ethics Commission and answer questions regarding ethical violations, it's going to hurt in an election such as ours," he said. "We'll just have to wait and see what the Ethics Commission is going to do.

"I'm glad it's her and not me," Neal said.

A spokesman for Kenny Guinn, the leading Republican candidate for governor, said Guinn would not comment on the decision.

The Ethics Commission also decided to review the "no" votes cast by the other four city council members on May 26 against a seafood restaurant proposed for property in front of the BankWest building on Sahara Avenue west of Interstate 15. Boyd, the founder of the bank, opposed the upscale Nick's Fishmarket restaurant proposed by Marc Gordon and others.

In addition to Jones and the council, Boyd and others involved in the controversy could be subpoenaed to testify, commission Chairwoman Mary Boetsch said. The commission approved subpoenas for Boyd, BankWest Director Perry Whitt, BankWest President Larry Woodrum and former Circus Circus Enterprises Inc. Chairman Clyde Turner, who is a partner with Schuetz in a limited liability company at the center of the controversy.

Jones, who attended Thursday's closed-door hearing in Reno with Schuetz, emerged after two hours without stopping to answer questions.

Schuetz pushed a news reporter away from Jones, who offered only a terse "no comment."

Boetsch said three issues will be examined at the August hearing regarding Jones:

-Whether Jones should have disclosed her campaign contributions from the Boyd Gaming Corp., of which William Boyd is the chief executive officer, before voting against the restaurant;

-The timing of a telephone call Jones made to Boyd to set up a meeting regarding her bid for the Democratic nomination for governor in relation to her vote against the restaurant;

-Jones' representations that she knew nothing about the investments of her husband and his business relationship with Boyd and BankWest at the time of the restaurant vote.

For three council members - Arnie Adamsen, Michael McDonald and Larry Brown - the only question to be reviewed is whether they should have disclosed Boyd campaign contributions before voting on the restaurant issue.

For Councilman Gary Reese, the campaign contribution issue will be examined and whether he should have abstained from the restaurant vote because of his friendship with Woodrum.

The ethics complaint was filed by Steve Miller, a former Las Vegas city councilman who ran unsuccessfully against Jones for mayor in 1991. Miller also has a slander lawsuit against Jones pending in the state Supreme Court and dating from the 1991 mayoral race.

"This is not a happy day," Miller said after the hearing. "How can you be happy over something like this?"

But Miller said the commission made the right decision in going forward.

The restaurant proposal has become an ethics question primarily for Jones because of complicated financial and personal relationships among Jones, Schuetz and Boyd.

Boyd and and fellow bank director Whitt helped finance a $4.3 million land purchase by Schuetz that was finalized four days before the city council vote on the restaurant.

Boyd, who also founded BankWest, opposed the restaurant project proposed for property in front of the bank.

Jones confirmed that she contacted Boyd before the hearing on the restaurant, but that the conversation dealt with her campaign for governor.

But Boyd said he did talk to Jones about the restaurant during the conversation "several days" prior to the restaurant hearing. BankWest officials opposed the restaurant saying it would impede the view of the bank and hinder customers.

Las Vegas city staff recommended approval of the restaurant project after traffic and parking concerns had been resolved.

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