Ethics panel raps mayor

CARSON CITY -- Some members of the state Ethics Commission are mystified that Las Vegas Mayor Jan Jones talked only briefly with her husband about his $4 million land deal, a transaction that has prompted charges of misconduct against her.

Their mystification is recorded in transcripts from a closed preliminary hearing conducted a week ago by the commission, which is seeking answers to why Jones did not disclose possible business and political ties before she voted against an application for a restaurant at Sahara Avenue and Paseo del Prado Street.

The commission found probable cause to proceed with a formal hearing and scheduled it for Aug. 14 in Las Vegas.

A review of the 85 pages of transcripts shows that Ethics Commission Chairman Mary Boetsch told Jones, a Democratic candidate for governor, that she better step up communications with her husband, Richard Schuetz, in the future or she could face more allegations of unethical behavior.

Boetsch also said she was "horribly" troubled by the timing of a telephone call by Jones to Las Vegas casino executive William Boyd about campaign funds. That call came four days before the City Council was to vote on the controversial restaurant project, which Boyd opposed.

The chairwoman told Jones, "It looks like you are seeking a quid pro quo. And you are not supposed to do that."

The commission also ordered four City Council members -- Arnie Adamsen, Larry Brown, Michael McDonald and Gary Reese -- to explain why they did not disclose before the vote that they had received campaign contributions from the Boyd Gaming Group.

Jones has denied any wrongdoing and said she never knew the full details of the business deal of her husband of six months.

She said she voted against the restaurant because it was too big for the parcel. "My vote on this issue was in no way improperly influenced or swayed by BankWest, its board of directors or any campaign contributions or Richard's property purchase," she said at the hearing.

Jones and Schuetz have a prenuptial agreement and each have separate finances. She said she recalls only that Schuetz asked her whether it was all right to buy land in Las Vegas and that he may have mentioned the price.

On May 26, 1998, the council unanimously denied the application of Marc Gordon to build Nick's Fishmarket restaurant at the site. Neighboring tenant BankWest had opposed the project. Boyd was a founder of the bank and Perry Whitt was on its board of directors.

Boyd, Whitt and others were partners in the ownership of 80 acres near Floyd Lamb State Park. Schuetz and Circus Circus executives Clyde Turner and Dick Etter formed a company called TES, which purchased the land.

Schuetz held 25 percent and Turner and Etter each had 37 1/2 percent. Schuetz initially put up $187,000 to close the deal and testified he owes about $700,000 to complete his part of the transaction.

Schuetz said he never knew the property was being purchased from a group that included Boyd and Whitt. In fact, he testified he knew little about the deal but trusted Turner implicitly.

Jones testified that her discussion with Schuetz about the purchase was "very minimal at best. I recall Richard asking me if it would be proper for him to buy property in the city of Las Vegas, and I said it was legal as long as it was properly disclosed."

She said she was aware of the formation of TES and the price of the property but nothing else was discussed. And she testified she never knew until after the May 26 vote on Nick's Fishmarket the identity of the sellers, who were owed about $3.6 million by the Schuetz-Turner-Etter group.

Her financial-disclosure statement as a candidate for governor was filed on May 28 and disclosed the debt.

Ethics Commissioner Joni Wines said she was troubled "by the fact that a married couple isn't sharing knowledge and experience." She found it hard to believe that Jones and Schuetz didn't do that. Jones replied this transaction involved her husband's separate finances and didn't concern her.

Boetsch told Jones, "Most people think the fact that you had no conservation about that is bizarre. In most other relationships, husbands and wives talk about multi-million-dollar investments ..."

The issue before the commission, Boetsch said, is whether members believe Jones' denial of knowledge about the land deal and the involvement of Boyd and Whitt.

The chairwoman also emphasized her problems with the phone call between Jones and Boyd four days before the vote on the fish restaurant, a call that included discussion about campaign contributions for Jones' bid to become governor.

Boetsch said the Boyd Group can be a significant source of campaign funds. Jones maintained that she had always opposed the restaurant project and that the only lobbying done came from supporters of the project.

Boetsch said, "But there is a phone call made four days before that vote is coming up to someone (Boyd) who has some connection to that vote and who brings it up."

The chairwoman suggested that during the conservation, Boyd brought up the restaurant issue and that Jones said she opposed it, then switched the conversation to campaign contributions. Jones said she never asked Boyd for money but they agreed to discuss it at a later meeting.

Jones said she wasn't sure she would get anything from Boyd, whose group had already donated $70,000 to Republican gubernatorial candidate Kenny Guinn.

At one point in the hearing, Schuetz noted the irony of the business dealings. He was in partnership with two executives from Circus Circus whose casinos donated $300,000 to Guinn.

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