Ely banker John Gianoli was jovial and confidant when asked of rumors that the rail road board directors including himself might be facing criminal charges relating to a ‘forensic’ audit finished earlier this year.
“Anyone can start a rumor,” Gianolli said dismissively. “But I sincerely doubt anything will come of it.”
Last week the Advocate reported that political opponents of the Railroad management board could be searching for ways to overcome their minority status to bring criminal charges confidential sources revealed this week. While no smoking gun of out right felony fraud or embezzlement was discovered in a city paid for forensic audit of the Railroads finances last year there may have been enough incidents of sloppy accounting to merit perhaps misdemeanor criminal charges against either the railroad board of directors or executive director Mark Basset.
Even before the ‘forensic audit was performed last year the fact that the Ely railroad lived a hand to mouth existence was not exactly secret. In fact the rail management board was taken to task by its own auditors for the past two years before. Those audits of the railroad found far from stealing from the railroad, its employees particularly Executive Director Mark Bassett have lent the organization money when they should not have.
In fact it was those improper loans to the railroad the council first used as its reason to assert its control over the railroad and ‘clean house’.
What is troubled many Ely residents is that after the “cleaning” there might not be much of a house left. This June Ely voters repudiated City Councilman Marty Westland- the leader of the anti railroad board, in the municipal election that swept most of the new good ol’ boys out of power and put a new slate on the council.
Recently Westlund has been seen with Ely Mayor Melody Van Camp and rumors have been spreading that some kind of action is in the works.
Twice earlier this year Van Camp’s effort to replace Railroad board directors was stymied by this new majority and it is very probable that a vote to make a criminal complaint against the Railroad would also die on a 3-2 vote.
There could however be other options such as going privately to the White Pine District Attorney or even making a complaint to the Sheriff’s office.
According to Gianolli the rumor bill is not only off base but actually silly.
“Does anyone actually think that given the history between the city and the rail road that if there was a hint of impropriety over the past three years it would not have come out already.” He added. “This whole thing has been a monumental and expensive waste of time.”
