Berkley ethics case shakes up Nevada race

In a major blow to Rep. Shelley Berkley’s Senate campaign, the House Ethics Committee announced Monday that it will formally investigate the Nevada Democrat over allegations she used her office to aid her husband’s medical practice.

Berkley has denied any wrongdoing, but Monday’s announcement — which comes in the middle of Berkley’s challenge to GOP Sen. Dean Heller — could seriously shake up a Senate race that has national implications.

Berkley has been close in recent polls, and a Democratic victory in Nevada would help the party protect its slim, four-seat Senate majority.

If a Nevada pickup is off the table for Democrats, then states like Missouri, Montana and Ohio — where Democratic incumbents Claire McCaskill, Jon Tester and Sherrod Brown are looking to beat back GOP challengers — become even more critical for Democrats.

It also raises the political stakes for open-seat races in Arizona, North Dakota and Virginia, two of which are now held by Democrats. Polls show tight contests in all three of those states, any of which could now decide who controls the Senate come January 2013.

Berkley’s ethics problems began last September after The New York Times reported that Berkley used her office to aid her husband’s kidney transplant practice in Las Vegas. Federal regulators were looking to shut down the kidney center at University Medical Center in Las Vegas in 2008, concerned about the high failure rate among kidney recipients there. After Berkley’s intervention, the contract was extended.

According to the Times, Berkley’s actions “were among a series over the last five years in which she pushed legislation or twisted the arms of federal regulators to pursue an agenda that is aligned with the business interests of her husband, Dr. Larry Lehrner.”

Lehrner owns a number of dialysis centers in Nevada and “has played a central role in an industry campaign to lobby members of Congress — including his wife — on behalf of kidney care providers,” the newspaper reported.

Berkley vehemently denied the allegations of a potential conflict of interest between her official actions and Lehrner’s business activities.

Berkley noted that other Nevada lawmakers — including Heller and GOP then-Rep.

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