The
Nevada Policy Research Institute uncovered fiscal mismanagement with the Las Vegas Convention and Visitors Authority, a public agency in Las Vegas which is funded by visitor-paid room tax dollars. According to NPRI's investigation the LVCVA entered into a ten-year no-bid contract with R&R, a marketing firm, where R&R overcharged the LVCVA and despite the LVCVA uncovering the over-billing management refused to seek repayment. The LVCVA also allowed R&R to approve its own expenses, and failed to question or oversee most of the expenses being billed to them. The contract with R&R is worth $87 million, including a $40 million advertising contract, which includes a commission for R&R, where the LVCVA cannot identify R&R's expenses. Public records show that
Rossi Ralenkotter approved approximately $30,000 in spending that included multiple dinners with bottles of wine, veal, fillets, chocolate mousse dessert and a $25,000 donation to the National Jewish Medical and Research Center, a Denver-based hospital which was giving Ralenkotter an award that year. The documents also show that Ralenkotter used tax dollars to pay for limousine services and a tuxedo. According to NPRI, the LVCVA is funded by the room tax ($220 million in revenue), taking in more money than the Clark County School District, and is also a state agency subject to state laws regarding employees, benefits, and travel expenses. According to the Las Vegas Convention and Visitors Authority, the problems uncovered by NPRI's reports were already documented by an internal auditor and the problems have been addressed by management. In 2018, an audit committee report disclosed, among other irregularities, board members had been using gift cards, which
Southwest Airlines had been providing since 2012, for personal travel. Misuse of the cards had been known since February, 2017. In March 2020, Ed Finger, the
chief financial officer for LVCVA, and Luke Puschnig, the agency's former
legal counsel, were among a half-dozen witnesses
subpoenaed to testify at a hearing in front of Las Vegas
Justice of the Peace, Harmony Letizia.
Ethics Cases The gift card scandal eventually resulted in several members of the LVCVA agreeing to violations of the Nevada Ethics Law including board members Rossi Ralenkotter, Lawrence Weekly, Brig Lawson and LVCVA staff member Cathy Tull. ==References==