Metro drops lien against Walters

Bill Gang

Thursday, Dec. 23, 1999 | 10:44 a.m.

The efforts by Metropolitan Police to seize Billy Walters' Desert Pine Golf Course because of allegations it was funded in part by illegally obtained gambling funds have been dropped.

Metro's attorney Ulrich Smith said today that the lien laying claim to the $20 million golf course has been withdrawn because Walters posted a letter of credit covering the $970,000 that is in dispute.

Walters is still fighting the seizure -- along with felony money laundering charges -- but his golf course at Bonanza and Pecos roads won't be at risk if he loses.

If that were to become a reality, Smith said the letter of credit amounts to "money in the bank" that would be turned over to the police department.

At the same time, while Walters is fighting his criminal case there is no lien to affect his credit or ability to re-finance or sell the golf course.

Walters, whose money laundering charges stem from his multimillion-dollar sports betting activities, has contended the effort to take control of the $20 million golf course is part of an ongoing police "extortion" plot against him.

"I think it's very obvious that this has never been about anything but money," he said after the civil forfeiture complaint was filed on Dec. 7. "Nothing more, nothing less."

In addition to the golf course funds, Metro is seeking the forfeiture of about $2.8 million seized in December 1996 and currently sitting in a bank account drawing interest until the criminal case is resolved.

Walters' attorney Richard Wright said the release of the lien against the golf course gives Walters the option to sell or refinance it, but when asked if that was the plan Wright only responded, "Maybe."

Two previous criminal indictments against Walters and several associates involving the same set of facts already have been dismissed.

A hearing has been set for January to determine if the latest case should be returned to the original judge who had dismissed the earlier indictments, District Judge Donald Mosley.

Walters, a well-known campaign contributor, has a 50-year lease from the city of Las Vegas to operate Desert Pines. He opened the public course three years ago.

In a 12-page forfeiture complaint filed by police, Special Prosector Ulrich Smith said law enforcement officials believe the $970,000 was obtained by Walters in late 1996 from a person identified as 'Kiki,' an agent for an illegal bookmaker who did business with Walters.

Police, Smith said, traced the money through a series of transactions that began in Canada and ended in Las Vegas, where the money wound up in the bank account of Southwest Golf, a limited partnership that developed Desert Pines.

"These transferred funds in the total amount exceeding $970,000 were utilized to finance, in part, the construction costs, including labor and materials for the defendant's Desert Pines Golf Club," Smith said.

Any action on the forfeiture is not likely until after the criminal case against Walters is resolved.