Cal-Neva Transport and Tow has filed a federal suit against the Nevada Attorney General's office and Carson City, charging a conspiracy to put the company out of business.
Tianna Clore, representing Cal-Neva owner Daiana Azbilcueta, said the problems began after Azbilcueta told authorities she thought Progressive Casualty Insurance company was issuing false identification cards to illegal aliens.
"She is very upset with everything she was put through just for happening to come across something she believed was illegal," said Clore.
Cal-Neva had earlier filed with the city to be one of the tow companies used by the sheriff's office and other city agencies in 2004. The suit accuses Undersheriff Steve Albertsen, Chief Deputy Steve Schuette and Kevin McCoy of Carson's code enforcement of preventing the company from getting city business by harassing and threatening Azbilcueta.
The suit says sheriff's officials told deputies not to impound any vehicles while Cal-Nevada was on its rotation as the department's towing company, which resulted in loss of income.
The suit also accused several state officials including Charles Tolotti of the transportation authority of harassment.
At one point, Azbilcueta was charged with embezzlement and conspiracy to commit theft by the attorney general's office. According to the complaint filed in Reno's U.S. District Court, those charges were dismissed this past February.
The suit says the attorney general's office had her "maliciously harassed, arrested and prosecuted," costing her more than $80,000 in legal fees.
Carson District Attorney Neil Rombardo declined to comment in detail because it is an open case.
"I think the allegations are unfounded," he said.
Spokeswoman Edie Cart-
wright confirmed the attorney general has received the suit.
"We believe it has no merit and will vigorously defend it," she said.
The attorney general has filed a motion to dismiss the lawsuit.