Donations that three leading Fort Dodge casino advocates made to Gov. Chet Culver's re-election campaign may be probed by a state special prosecutor.
Iowa Attorney General Tom Miller said Wednesday that he will ask a panel of some of the state's top elected officials to name a special prosecutor.
His recommended choice for the job is former Attorney General Lawrence F. Scalise, a Des Moines attorney. Scalise has had a long career in law and government service. From 1995 to 2002, he was an aide to a federal special prosecutor investigating Henry Cisneros, the former secretary of housing and urban development.
Jim Kesterson, one of the men whose political contributions would be examined during a probe led by Scalise, said Wednesday afternoon that he's not worried about it.
''We have nothing to fear because there were no improprieties,'' he said.
''I think they'll end it with a finding of this being a non-issue,'' Kesterson added.
Calls seeking comment from the other two men, Steve Daniel and Merrill Leffler Jr., weren't immediately returned.
Daniel, Kesterson and Leffler are leaders of Webster County Gaming LLC. That group is helping to lead the effort to secure a state license to open the Diamond Jo Fort Dodge casino.
The sum of $25,000 is at the heart of the matter Scalise may be investigating.
Carrie Tedore, director of public relations for Peninsula Gaming, has said the company gave the three a $25,000 consulting fee in November 2009. Peninsula Gaming would operate the Fort Dodge casino if a license is awarded for it.
Daniel has said that he, Kesterson and Leffler contributed a combined $25,000 to Culver's re-election campaign late last year. He and Kesterson have both said their portions of the $25,000 came from their own money, and not from the consulting-fee payment.
The Culver campaign has said the $25,000 was donated to charity.
Culver has asked the Iowa Racing and Gaming Commission to award casino licenses to Fort Dodge and planned projects in Lyon County, Ottumwa and Tama. The commission is scheduled to consider awarding those licenses on May 13.
The impact Miller's request for a special prosecutor may have on the local bid for a casino license is not known. Jack Ketterer, administrator of the Iowa Racing and Gaming Commission, referred all inquiries to Miller's office. A call seeking comment from commission Chairman Greg Seyfer wasn't returned.
In a written statement announcing his decision, Miller said his office has ''no actual conflict of interest in this case.''
''However, I have also concluded that there is an appearance of a conflict of interest in this matter that is sufficient to lead me to seek a special prosecutor for this action,'' Miller added.
Eric Tabor, Miller's chief of staff, said the fact that Culver's campaign manager, Donn Stanley, worked for the attorney general's office prompted the request for a special prosecutor. He said Stanley was an assistant attorney general who took a leave of absence to work for Culver.
Tabor said Miller acted out of an ''abundance of caution'' to ensure public confidence in the process.
Miller's request to appoint Scalise will be considered by Culver, Agriculture Secretary Bill Northey, state Auditor David Vaudt, Secretary of State Michael Mauro and state Treasurer Mike Fitzgerald. Those officials will meet together as the state's Executive Council on May 17 to consider the special prosecutor appointment.
The Executive Council has existed since 1860. Its duties include approving the banks that state money is deposited in, canvassing state election results and approving out-of-state travel by Iowa officials.
Tabor said if Scalise is appointed, he will work with the Iowa Division of Criminal Investigation to determine if any charges should be filed.
Gary Dickey, a Des Moines attorney, had previously reviewed the situation on behalf of Peninsula Gaming, and on Wednesday he offered to present his findings to Scalise.
''Peninsula Gaming takes its reputation very seriously and is unable to simply ignore the unwarranted attention this matter has drawn,'' Dickey wrote in a letter to Scalise.
Dickey didn't describe his findings in the letter.
Tedore, who provided a copy of Dickey's letter, said Peninsula would have no other comment on the matter Wednesday.
Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net