LAS VEGAS -- Nevada Senator John Ensign is in the crosshairs of a Department of Justice criminal investigation.
The criminal probe stems from a romantic affair Ensign had with the wife of his key staffer and close friend, Doug Hampton, and what Ensign has done to help Hampton financially.
Subpoenas have been issued to at least six las vegas businesses. The Justice Department came to Las Vegas to interview several prominent business and political figures in what appears to be a wide-ranging and deadly-serious criminal probe.
On March 8, 2010, a two person team from the DOJ came to Las Vegas with a fistful of subpoenas to serve on local businessmen who have had dealings with Senator Ensign or his staff since January 2008. The team consisted of a special agent from the FBI and a prosecutor from the Criminal Division, Public Integrity Section of the Department of Justice.
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The subpoenas sought any and all records; including emails, phone calls and calendars regarding any interaction the Las Vegas businesses may have had with Ensign, his Chief of Staff John Lopez, Doug Hampton, Hampton's wife Cindy -- the object of the senator's romantic interest -- Ensign's principal political advisor Mike Slanker, and Slanker's company November Inc. Slanker and wife Lindsay were hired by Ensign to run the fundraising effort for the National Republican Senatorial Committee.
After Ensign's affair with Hampton's wife became known, Ensign urged the Slankers to hire Hampton at November Inc. Hampton was later hired by two Nevada companies with known ties to Ensign, but the trail of subpoenas makes it clear the Justice Department wants to know if other Las Vegas businesses had their arms twisted to give work to Hampton, or whether they were pressured by Ensign or his senate staffers, and what the businesses expected in return.
According to multiple sources familiar with the grand jury subpoenas, investigators do not believe any of the Nevada companies did anything illegal. Their interest is focused on Ensign, Hampton, and others who may have assisted in trying to steer income Hampton's way.
The Washington grand jury wants all of the subpoenaed records by the end of this month, indicating the investigation is moving rapidly.
A parallel investigation by the Senate Ethics Committee has also generated subpoenas to Nevadans. Most of those subpoenaed by the grand jury were also subpoenaed by the Ethics Committee, but a few served by the Senate were not served by the DOJ.
The fact that the investigators came to Las Vegas, not just to interview people but to serve subpoenas, is a clue that they are pretty serious about this matter.
As the investigation expands, the FBI and U.S. Attorneys are looking for emails that may tie Ensign, Hampton and others to a plan for large cash donations and lobbying jobs.
From what emails and sources say, they were shopping Doug Hampton around, trying to get him jobs in exchange for silence. The senator would give Nevada companies help, but the overall message was to hire Hampton. $30,000 in donations to Republicans wouldn't hurt either.
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In early 2008, a group of prepaid credit card companies lost out on a federal bid and asked Senator Ensign's office for help. They wanted to learn from their mistakes and win the bid next time.
One of those companies was eCommLink, formerly run by Jack Williams, a man who claimed to have invented the gift card.
Senator Ensign's then-Chief of Staff John Lopez welcomed the opportunity to help a Nevada company. But sources say Ensign's office quickly seized on the opportunity to get something in return.
Sources close to the situation say Ensign's office warned eCommLink and others about pending prepaid card regulation and that donations and support could make those troublesome rules go away.
Ensign's office wanted a lunch meeting and a fundraiser. Then he planned an office visit a few weeks later. Then the big push -- more protection from regulation in exchange for a $28,000 contribution to the National Republican Senatorial Committee, the Majority Makers.
The contributions were set up by Lindsey Slanker, whose husband Mike was the very person said to be shopping Hampton around. All of this happened while the affair was unraveling in Washington and Doug Hampton demanded to get jobs.
Ensign's people wanted someone, anyone, to hire Hampton as a lobbyist. Many companies declined. Eventually Slanker took Hampton in, the lobbying began, and now the FBI and Senate must decide which laws may have been broken.
The net they cast in town last week is very wide. Senator Ensign continues to say he has done nothing wrong, legally or ethically and that he will cooperate with any investigations.
Slanker did not return calls for comment. Jack Williams is no longer with eCommLink and his current business has no listed number.
John Ensign
Doug Hampton
