Iowa: Casino execs charged over illegal contribution

Casino execs charged over illegal contribution to Culver's campaign

Des Moines, Iowa


Monday, special prosecutor, Lawrence Scalise, filed charges against two gambling groups and four men involved in campaign contributions make to Iowa Governor Chet Culver. The gaming interests were for a casino deal in Fort Dodge, Iowa (Webster County). The charges were filed in Polk County District Court. Attorney General Tom Miller appointed Scalise in July after questions and concerns were voiced regarding campaign contributions from the group and individuals who were seeking a state gambling license.

In April, 2010, Central Iowa Politics Examiner reported that the Iowa Department of Criminal Investigations (DCI) was investigating Dubuque-based Peninsula Gaming for donations that they made to Culver's campaign for re-election. According to Culver's campaign, the $25,000 from three casino supporters were donated to charity. At the time the alleged donation to charity was given specifically and split evenly between Door of Faith, Churches United and St. Vincent de Paul. After hearing of the DCI investigation, the Door of Faith homeless shelther in Des Moines, returned the money to Culver's office.

Initially Culver stated that he did not receive the donations, but his campaign later corrected the statements in May. Donn Stanley stated that Culver had made an error in April, when it was made public that the Governor had not contacted anyone associated to a casino license application after it had been filed. On May 13, the Iowa Racing and Gaming Commission met in Johnston and unanimously gave Lyon County the only state gambling license of the 4 bids in consideration. The commissioners said that they were concerned about financing and over-saturations of the gaming market in Iowa. Culver publically stated that he was disappointed that only one casino license was granted, and promised to "do everything...to assist communities in Webster, Wapello and Tama counties with their job preservation and creation efforts, now, and in the future".

That same month, Culver appeared on "Iowa Press", an Iowa Public Television production. Dean Borg, one of those interviewing the Governor, focused on Culver's repeated statements about the positives in his campaign for re-election. When asked about the DCI investigation Culver said, "casino interests have contributed to campaigns in this state for a long time. Since Terry Branstad introduced gaming to Iowa, Republican and Democratic candidates have accepted...". At that point Borg interrupted Culver and stated that gaming wasn't the issue, but credibility and reputation in regards to Culver being a candidate were.

"There is an allegation that three individuals made a donation that is not lawful. That's the investigation,” Culver said. "But our conscience is clear. I have 7,500 contributors across this state and across the country that have willingly stepped up to support my candidacy. We expect that every one of those contributors follows the rules and if they don't, there will be consequences."

It is illegal in Iowa, to make or knowingly receive a political contribution in another's name.

Charges


Those who were charged with making such campaign contributions were M. Brent Stevens (chief executive officer of Peninsula gaming); Jonathan Swain (chief operating officer of Peninsula Gaming); Curtis Beason (a Davenport attorney); Steven Daniel (a Fort Dodge businessman who headed Webster County Entertainment); Peninsula Gaming; and Webster County Entertainment.

The defendants are also charged with willful failure to disclose a campaign contribution. Beason was additionally charged with a single count of obstruction for his alleged production of altered documents which contained false statements given to investigators. This charge also alleges that Beason provided false statements to law enforcement officials.

The finance charges are considered serious misdemeanors and carry a maximum sentence of one year in jail and a $1,875 fine. The charge of obstruction against Beason is an aggravated misdemeanor and carried a maximum sentence of two years of imprisonment or one year in jail and a $6,250 fine.

Stevens, Swain, Beason, and Daniel, will be arraigned at 8 a.m. on November 1, 2010.

Daniel and two other partners in Webster County Entertainment, James Kesterson and Merrill D. Leffler, contributed a total of $25,000 to Culver in late 2009. Peninsula called the payment a consulting fee. Daniel told Des Moines Register reporters that the contributions were legal. He said, "I've never been told by Peninsula or anybody to make a contribution to Governor Culver." In an April memo, Beason said that a $25,000 payment was made from Peninsula officials to Daniel's management company, Webster County Entertainment. According to Beason, the payment was made to cover expenses as part of a deal to have Peninsula manage the Fort Dodge facility.

Kesterson and Leffler were not charged and are listed as witnessed for the prosecution.

Response by Peninsula Gaming


Peninsula Gaming is a casino entertainment holding company with gaming operations in Iowa and Louisiana. They operate the Diamond Jo casinos located in Dubuque and Worth County.

Their statement: "Peninsula has, during its 11-year history, always adhered to the highest standards of regulatory compliance and ethical business practices and has an impeccable record of responsibility and excellence in the gaming industry. We look forward to a positive resolution of this matter."