Rory Reid Faces Questions Over Campaign Finance

LAS VEGAS -- Serious allegations were leveled Friday against former gubernatorial hopeful Rory Reid.

The political action committees under his control funneled hundreds of thousands of dollars back into his campaign, which is a possible violation of Nevada law.

Reid allegedly used his main PAC to send $10,000 contributions out to dozens of smaller PAC's. They were registered to a small, single family house, but still sent the money directly back into the Reid campaign.

That may have allowed him to raise more money that would be properly allowed under current campaign rules.

Nevada Secretary of State Ross Miller has started an investigation, while Reid's attorney believes no laws were broken, claiming the Secretary of State's Office signed off on the plan.

Reid's attorney released a statement saying, "The Reid campaign requested counsel on the legalities of structuring multiple political action committees. Through my research of the Campaign Practices Act, I found no legal prohibition in Nevada on the PAC structure the campaign wished to use. I consulted with the Secretary of State's office, who confirmed that this structure is legal."

Late Friday, Miller released a statement saying, "I believe this is a case of first impressions. I don't yet have all the facts and will look at them very carefully when I do. I will consult with the Election Integrity Task Force and the Attorney General if the facts rise to that level."


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