District judge won’t step down from money-laundering case unless removed

Bill Gang

Thursday, Jan. 27, 2000 | 11:49 a.m.

District Judge Donald Mosley has refused to remove himself from the money-laundering case of sports bettor and politically connected golf course operator Billy Walters and three others.

But that doesn't mean he will stay on the case that stemmed from a third indictment of Walters and three others. Two prior indictments were dismissed by Mosley because of what he ruled were technical irregularities.

Walters, James Jay Hanley, computer expert Daniel Pray and New Yorker John Tognino are charged with illegally funneling gambling proceeds in and out of Nevada as part of Walters' international betting operation.

There are no allegations of illegal bookmaking by the defendants, but the charges allege that the group dealt with illegal bookmakers in placing bets.

Because the Nevada Attorney General's Office filed a motion seeking Mosley's disqualification, citing questions about his impartiality, the issue now will go to Chief District Judge Lee Gates for a hearing.

While Mosley could have stepped down and had the Walters case assigned to another judge, Mosley instead filed affidavits late Wednesday denying bias for or against anyone in the case.

In the process, Mosley chastised Deputy Attorney General David Thompson for filing a motion to "force" reassignment of the case rather than discuss face to face the possibility of the judge voluntarily stepping down in an open hearing.

The state's motion contends that Mosley's personal friendship with John Moran Jr., who represents Hanley, is so close that Mosley couldn't be impartial.

Mosley denied the relationship is too close and charged the prosecutors "have attempted to manufacture bias" to get Mosley dismissed.