A shot in the dark

Hoda Kotb Correspondent • Profile

RENO, Nev. - There are mountains and valleys, deep lakes and high desert.

There are the darkest of nights and the brightest of lights.

One the fastest growing areas of the country, the Reno-Lake Tahoe-Carson City area of Nevada is full of contrasts.

It is beautiful and brash, in-your-face, on the move, looking ahead and self-confident.

And a woman who wielded power at the highest levels of government personified the place.

(KRNV-TV interview)
Kathy Augustine: Yes, I am a tough boss, I pride myself in the work that we've been able to accomplish.

She made her mark here and attracted attention right until the end.

Reno likes to call itself "the biggest little city in the world." This used to be the spot where Hollywood celebrities would come for a quickie divorce. Now it is the setting for a bizarre saga that could have been pulled from a Hollywood screenplay.

It's a story of power, ambition and enemies. Investigators say it's also a story of murder, what they believe could have been the perfect crime -- if not for one slip of the tongue.

The photos say it all. She was a prominent politician poised for an even brighter future. She posed with President Bush, with the First Lady, with the president's father, and Vice President Cheney.

Nevada state controller Kathy Augustine put herself front and center almost any chance she could get.

(KRNV-TV interview)
Kathy Augustine: Well, I have to be confident. I have to have a positive attitude.

Victoria Campbell (KRNV-TV): She was tough. And that was evident just upon meeting her. Firm handshakes. Looked you straight in the eye.

KRNV-TV reporter Victoria Campbell covered Kathy Augustine's career for years.

Victoria Campbell: Kathy Augustine was ambitious and tenacious and driven.

But when it came to her personal life, Kathy wasn't nearly as much in control, and the sorrow sometimes showed.

Victoria Campbell: When Kathy Augustine spoke, and she smiled, it was a smile that did not quite reach her eyes.

She started life as a California girl. Born Kathy Alfano in the Los Angeles area, she grew up in the '60s and '70s. Phil Alfano admired his big sister.

Phil Alfano: She certainly pushed herself. She was salutatorian and participated in associated student bodies.

That taste of student government soon developed into a passion for politics. In college, she majored in political science and won a coveted internship on Capitol Hill.

But after graduation, she took a more traditional route for a time. She went to work for an airline in crew scheduling and briefly as a flight attendant.

She traveled across the country, but the high flying may have come with a price.

One marriage failed and then another. Her brother says Kathy was always a bit naive when it came to relationships.

Phil Alfano: I think she could be too trusting of people. Some of the guys that she went out with were not what I'd describe as the as the best.
Hoda Kotb: What do you think drew her to the guys who didn't seem suited for her?
Phil Alfano: You know, I think it was just an impulsivity, I guess--
Hoda Kotb: Yes.
Phil Alfano: --would be the best way to describe it. I think she would regret it quickly.

And as she approached her thirtieth birthday, she was a single mother raising a daughter on her own.

Then, in 1988, a new man entered her life. He was a Delta Airlines pilot named Charles Augustine -- 15 years her senior.

When Kathy and Charles said "I do" it was his second marriage and her third. They lived in the Las Vegas area. And for a time, this marriage seemed built to last.

By the late '80s, though, her enthusiasm for politics came to the forefront once again.

Before long, Kathy Augustine was consumed by a newfound passion for the Republican party. Heidi Smith was Kathy's friend for two decades:

Heidi Smith: Kathy soon became addicted and she loved it. She loved the fight. She loved the pushing to get ahead and she just went for it.

In 1992 she was elected to her first public office, the Nevada assembly. The state senate followed. Then, in 1998, she got her most powerful job yet: Nevada state controller.

Heidi Smith: Kathy was a bill collector for the state. That requires somebody with a steel spine. She collected a lot of bad debt. You don't do that by being a sweet little thing.

While some state workers say you could hear the sound of her laughter booming through the hallways...

Victoria Campbell: I think some of her employees and people who also worked in the state capital building remember too that you could hear her shouting at her employees all around that building.

There was turmoil away from the capital, too. Charles Augustine hardly relished the role of political spouse. Over time, the marriage faltered.

Greg Augustine (Charles' son): I think at the end when she was the controller, I think that's-- that was it.

Kathy and Charles Augustine eventually decided on a divorce, but he was certainly not pushing for it, and neither was Kathy's family.

Phil Alfano: Chuck was a great guy. And our family, we all got along very well with him.
Hoda Kotb: Did you try to convince her not to break it off?
Phil Alfano: I did. Yeah.

And then, later in 2003, fate intervened. Charles Augustine suffered a stroke. Kathy spent long hours by his bedside. For a time he seemed to improve.

But after weeks in the hospital, Charles Augustine took a sudden turn for the worse. He suffered massive organ failure and died.

Greg Augustine: And this was a total shock. Because just days before we were talking about rehabilitation and we were talking about who's going to take care of this person.

It turns out that Charles Augustine would not rest in peace. For Kathy Augustine, Charles' death would be just the beginning of a bizarre chain of events.

She would marry again, but when settling into her new life storm clouds would gather. Enemies -- and a murder investigation -- loomed on the horizon.