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Miller seeks special prosecutor in casino case

Scalise may be tapped to probe contributions

By BILL SHEA Messenger staff writer
POSTED: May 6, 2010

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

Member Comments
View Comments: | 1-25 |26-35 | Post a comment
Ackerman
05-08-10 2:16 AM
Yes, we voted in favor of gambling. . .on a RIVER BOAT. That’s very much specifically where such gambling would be taking place. . .on a RIVER BOAT. The law has changed to allow casino gambling. . .change in law DOES NOT CHANGE our referendum; we voted a RIVER BOAT NOT A CASINO.

Saying our referendum passed anything other than a RIVER BOAT is just a fairy-tail the supports tell to inflict something upon us that no one wants: yes, the We’re All-In is a fairy-tail too–otherwise our city would not have needed to stoop to underhanded dirty tactics to present the falsehood of everyone being in! Welcome to Dirty Dodge!

FDGolfer
05-07-10 9:46 AM
Thanks, my point was exactly what you stated. While a boat was a requirement at the time (although I don't remember that) I do not think that is why anyone voted yes. I really hope this goes through next week, but then what will some people have to complain about?

keepngoal
05-07-10 9:13 AM
FD golfer:

Actually the ballot did specify for a riverboat, but it was for gambling. At the time Iowa law required the CASINO to be on water. That has changed and has allowed a better location for a better casino for FD. The premise of having a casino in Webster county was passed, just at the time the boat location was a requirement.

IMHO, it is parsing words for a last grasp at stopping a casino.

FDGolfer
05-07-10 8:49 AM
I thought we voted in favor of GAMBLING. As I remember, I voted to support gambling with no mention on the ballot of how or where that would happen. A boat was an idea at the time, but that is NOT why I voted yes.

Ackerman
05-07-10 2:53 AM
flapjaw, by your logic we don't get a casino then--we voted on a RIVERBOAT NOT A CASINO.

flap and racine are right the underhanded dirty tactics should not be tolerated. How dare they prevent opponents from attending rallies and pay supporters to attend. Oh wait, that was our cities dirty tactics. Sorry, confused Ft. Dodge and E'burg. What was that old saying: the city without sin casting the first stone wasn't it?

racine36
05-06-10 11:50 PM
I agree totally with flapjaw and I heard 1 of the E-burg guys said "I don't recognize a single face" looking at the FD group. You will NEVER see them again, losers!! Literally!

flapjaw
05-06-10 10:09 PM
Well I can say this, these people in this town have worked so hard to try and get this casino here. It was voted in and I think that should be the end of it. If all of the others that want a casino were voted in also, give them all a license. And as far as Emmetsburg losing their 21 percent of their business, they have already lost that from the Fort Dodge people and the surrounding communities as they will never come to Emmetsburg to the Wild Rose again, either way of the outcome. They would rather give it to Des Moines, than to help Emmetsburg, as they were so negative to us. They don't know it yet, but mark my words, they will suffer from their negative lashes at us.

CantUnderstandNegativeTalk
05-06-10 3:58 PM
I just wish people would start being more positive in this community.

keepngoal
05-06-10 3:13 PM
besides.. these stories are news. imagine the outcry if they didn't publish the stories.

keepngoal
05-06-10 3:12 PM
ksl: what bad press? the paper has been overwhelming for the casino. I can think of one good reason they are for it. But they have also printed/published stories/letters that are against or anti-casino. While not completely balanced (as they have been leaning FOR IT heavily) they have done a decent job of getting the other sides voice out there.

Anderson
05-06-10 3:00 PM
ksl: Let's get honest for once! That is nonsense about union PAC's only giving to the Democrats. Unions' biggest and most important contribution is in bodies who do the legwork of organizing and getting out the the vote. Virtually all union staffers from top to bottom are paid political operatives at election time and much of the time between, i.e. when they are not milking govts for financial support as in the case of SEIU and its late public, but now underground, community organizing wing, ACORN. Ditto, congressional staffers regardless of party. There are many ways of skinning the cat re legislative contribution prohibitions, thus the Supreme Court's recent decision re business/corporation contributions. An paid employee's labor is almost as fungible an item as is a dollar contribution.

fyiguy1
05-06-10 2:58 PM
No mambamajaBOY you need to put your shoes back on!!

ksl1984
05-06-10 2:38 PM
I'm glad this article admitted the reason for the 'Special Prosecutor' was because of Donn Stanley and a conflict of interest in the AG's office. Ground should be breaking on the casino here in month or two.

Now I just hope when the casino's marketing department starts their thing, they refuse to advertise in the Messenger because of all the 'bad press'. Why not give the marketing monies to FDWeb?

ksl1984
05-06-10 2:32 PM
My prediction is that if Fort Dodge doesn't get a casino license, nobody will...

Also, CoolHandLuke, Union's can only donate money from a PAC, not membership dues.

jean12
05-06-10 2:30 PM
fact owner of the wild rose gave 25,000.00 to the governers campaign, he lives in west des moines rubs elbows with all the right people had a 10 million law suit against his casino dropped does not want a casino in fort dodge is there some under handed things going on and should it be questioned? someone is using a lot of pressure in all of this more going on then what we are seeing

fyiguy1
05-06-10 1:57 PM
Yes, there is a strange smell in the air here in FD and its not Friskies or the river this time.

2cents
05-06-10 1:16 PM
From the smell of things lately, they'll probably need a scoop shovel, fyigy1. lol

fyiguy1
05-06-10 12:57 PM
The state will do to their spring cleaning and get the dirt out from under the rugs. Will they use a vacuum or broom?

Anderson
05-06-10 12:15 PM
Wasn't Scalise a member of the original R & G Commission? Guess he should know what goes on behind the scenes, but does his investigation represent DEMOCRAT Miller's idea of an "independent" prosecutor? How about someone without ANY connection to the Iowa gambling scene, past or present, or to Miller and the Democrat Party?

lucie1
05-06-10 12:12 PM
Who owns the property that the casino is going to be built on if approved....I heard these gentlemen have agreed to purchase the property if approved...seems to me if that is the case they have a much bigger stake than just wanting a casino for jobs and such

keepngoal
05-06-10 11:48 AM
fyiguy: track record? vague accusations.

I agree with FDGolfer .. successful business, successful people are not dummies.

FDGolfer
05-06-10 11:41 AM
While this is good conversation for a few, these are three successful businessmen and they are not dummies. I find it hard to believe any of these individuals would not have considered these things and all the hard work potentially lost in this situation. Makes for good babble though, doesn't it?

ThinkFD
05-06-10 11:25 AM
I will NEVER be going to the WILD ROSE again! Not that I went there often, but after seeing how they have been acting. No part of Emmetsburg will ever get any of my money again, period. They have acted like scared little babies. Grow up!

CoolHandLuke
05-06-10 10:08 AM
boatassembler, if it is against the law, then why do unions dontate millions to campaigns from unio dues, without the consent of all it members? Shouldn't that also be illegal?

duke
05-06-10 10:07 AM
OH NO ! The Gaming Commission is going to make their decision on the 13th , any All-IN backers superstitious ?

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