Attorneys attack prosecutor payments
Having casino company pay isn’t right, they claim in Daniel case filings
By BILL SHEA, Messenger staff writer , Messenger News
Peninsula Gaming, the company picked to run a proposed Fort Dodge casino, and its top two executives appeared to be in legal trouble as 2010 drew to a close.
Special Prosecutor Lawrence Scalise filed criminal charges in October of that year against the Dubuque company; Brent Stevens, its chief executive officer; and Jonathan Swain, its chief operating officer; in connection with a contribution to the re-election campaign of former Gov. Chet Culver by Steve Daniel, a Fort Dodge man leading the effort to bring a casino to his town. Daniel, Webster County Entertainment and Davenport attorney Curtis Beason were also charged in the case.
The legal fortunes of Peninsula Gaming, Stevens and Swain have since improved. All charges against them have been dismissed, and the company is now paying for the ongoing prosecution of Daniel, Webster County Entertainment and Beason.
That arrangement is now the target of a fresh offensive by defense attorneys seeking to get the special prosecutors disqualified and the charges against the remaining defendants thrown out.
Daniel's attorney, Monty Fisher, of Fort Dodge, and Beason's attorneys, Leon Spies, of Iowa City, and Mark Weinhardt and William Ortman, of Des Moines, have filed motions in Polk County District Court claiming the payment arrangement violates ethics rules.
''Allowing the well heeled defendant, PGP (Peninsula Gaming), to escape prosecution by agreeing to pay for the prosecution of others violates not only the plain language of the ethical rules as argued by defendant Beason, but also clearly violates the spirit of the rules and the entire administration of a fair and impartial justice system,'' Fisher wrote in a motion filed Thursday.
The payment arrangement is outlined in a May 12, 2011, letter to Scalise from Guy Cook, the Des Moines attorney representing Peninsula Gaming. In the letter, Cook writes that the charges will be dismissed and adds ''finally, Peninsula Gaming will pay the costs of the prosecution of the charges previously brought through conclusion of this matter.''
On May 13, 2011, the prosecutors dropped the charges against Peninsula, Stevens and Swain.
Scalise's law firm, Coppola, McConville, Coppola, Hockenberg & Scalise, of West Des Moines, has been paid more than $100,000 so far for his work as a special prosecutor.
''The state of Iowa is not going to end up having one penny paid out to us that has not been reimbursed, so the taxpayers aren't footing the bill,'' Scalise said during a Nov. 17, 2011, hearing.
The charges against all the defendants in the case were filed on Oct. 11, 2010, following a probe by the Iowa Division of Criminal Investigation.
Daniel and Webster County Entertainment are scheduled to go on trial in Des Moines beginning Jan. 23 on charges of making a campaign contribution in the name of another and willful failure to disclose a campaign contribution. Beason, who is charged with failure to disclose a campaign contribution and obstruction, is also scheduled to go on trial that day.
The trial may be delayed, depending on what Polk County Associate District Court Judge William Price does with the six motions filed by the defense attorneys. Each of those motions addresses a different aspect of the legality of the payment arrangement between Peninsula Gaming and the special prosecutors.
A call seeking comment from Scalise wasn't returned Friday. A staffer in his office said he was meeting with Attorney General Tom Miller about a different issue.
Scalise and fellow Special Prosecutor Richard McConville claim that Daniel funneled campaign cash to Culver on behalf of Peninsula Gaming when he made his donation in November 2009.
During a pre-trial hearing in November 2011, Scalise said that Beason was the ''director, architect and orchestrator of the entire program to disguise the true source of the dollars.''
Attorneys disagree on how much money was donated. Scalise and McConville have said the amount was $25,000. Fisher has said the total was $11,000 paid in increments of $4,500, $4,500 and $2,000.
The prosecutors say the donation was made shortly after Peninsula Gaming paid Webster County Entertainment, a group led by Daniel, a $25,000 consulting fee. According to Scalise, within days of the $25,000 being deposited in the Webster County Entertainment account, checks were written to Daniel, Jim Kesterson and Merrill Leffler Jr. Kesterson and Leffler are Fort Dodge men who were partners with Daniel in Webster County Entertainment.
Scalise said the three men promptly wrote checks to Culver's re-election campaign.
Kesterson and Leffler were never charged with any crimes.
The effort to create the Diamond Jo Fort Dodge casino ended in May 2010 when the Iowa Racing and Gaming Commission declined to issue the needed license.
Showing posts with label Webster County Entertainment. Show all posts
Showing posts with label Webster County Entertainment. Show all posts
Saturday, January 7, 2012
Wednesday, October 13, 2010
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."
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."
Tuesday, October 12, 2010
Iowa: Charges filed in Iowa casino investigation
Charges filed in Iowa casino investigation
DES MOINES, Iowa
A special prosecutor has filed charges against four people and two gambling entities after an investigation into campaign contributions made to Iowa Gov. Chet Culver by gaming interests in Webster County.
Special Counsel Lawrence F. Scalise says he filed the charges Monday in Polk County District Court.
Martin Brent Stevens, Jonathan Swain, Steve Daniel and Curtis Beason, as well Peninsula Gaming Partners LLC and Webster County Entertainment were charged with violating campaign disclosure laws. Beason faces an additional count of obstruction.
Attorney General Tom Miller appointed Scalise in July after questions were raised about campaign contributions from a group seeking a state license to operate a casino in Fort Dodge.
Scalise says there is no evidence of wrongdoing by anyone other than those named, apparently clearing Culver of any involvement.
Telephone messages left for Stevens, Swain and Beason were not immediately returned. A listing for Daniel couldn't be immediately located.
DES MOINES, Iowa
A special prosecutor has filed charges against four people and two gambling entities after an investigation into campaign contributions made to Iowa Gov. Chet Culver by gaming interests in Webster County.
Special Counsel Lawrence F. Scalise says he filed the charges Monday in Polk County District Court.
Martin Brent Stevens, Jonathan Swain, Steve Daniel and Curtis Beason, as well Peninsula Gaming Partners LLC and Webster County Entertainment were charged with violating campaign disclosure laws. Beason faces an additional count of obstruction.
Attorney General Tom Miller appointed Scalise in July after questions were raised about campaign contributions from a group seeking a state license to operate a casino in Fort Dodge.
Scalise says there is no evidence of wrongdoing by anyone other than those named, apparently clearing Culver of any involvement.
Telephone messages left for Stevens, Swain and Beason were not immediately returned. A listing for Daniel couldn't be immediately located.
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