Special prosecutor hired in Fort Dodge casino probe

DES MOINES – The Iowa Executive Council voted 3-0 Monday to enlist a special prosecutor to look into allegations of improper contributions to Gov. Chet Culver's re-election campaign from Fort Dodge casino interests.

The council agreed to hire former state attorney general Lawrence Scalise of West Des Moines for what was described as “an incredible bargain” price of $80 per hour – a rate considerably below what normally is charged by special prosecutors. It will be Scalise's job to probe allegations that Fort Dodge casino backers passed money through a third party to the Culver campaign.

Culver, who is chairman of the council and participated Monday by telephone hookup, did not participate in the discussion but cast an affirmative vote. Culver chief-of-staff Jim Larew said the motion to approve outside counsel would have been approved by Secretary of State Michael Mauro and Secretary of Agriculture Bill Northey had Culver decided not to participate because it would have been a majority of the three members present at Monday's meeting.

Julie Pottorff of the Attorney General's Office said her boss, Tom Miller, concluded the office had no actual conflict of interest, but had an appearance of a conflict because Donn Stanley moved from being a division head in Miller's office to managing the Culver-Judge re-election campaign.

“We believe it's merited to have a special prosecutor handle the rest of the criminal case,” Pottorff told reporters after the meeting.

Pottorff said it was unknown how much the special prosecution might cost of the timeline of the probe. She told council members she would provide periodic updates and cumulative costs estimates as the matter proceeds.

The state Division of Criminal Investigation is probing donations from three Fort Dodge businessmen who reportedly gave $25,000 to the Culver campaign last November and December after they had received $25,000 themselves from Peninsula Gaming. The company and businessmen are partners in an effort to get a casino license in Fort Dodge.

Culver, who publicly advised the Racing and Gaming Commission to issue licenses for casinos in Fort Dodge and three other communities, has denied any impropriety in regard to the contribution.

The donations to Culver's campaign raised questions about whether they were funneled from the casino company through the businessmen. It's illegal to make contributions from somebody else in your own name or to knowingly receive those donations. The company has denied any wrongdoing. The businessmen said the payments to them were for expenses related to the license application.

“It's my opinion, and I've offered it to the governor, that there's no reason to believe that either his office or he or the lieutenant governor are targets of the investigation,” said Jim Larew, Culver's chief of staff who formerly acted as the governor's legal counsel.

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