Columnist Jeff German: Lawmen continuing to pursue Walters

Friday, April 6, 2001 | 4:54 a.m.

Jeff German is the Sun's senior investigative reporter. He can be reached at (702) 259-4067 or by e-mail at german@lasvegassun.com.

LAW ENFORCEMENT authorities want to indict politically connected gambler Billy Walters for what may be a record fourth time.

Three previous indictments against Walters, all stemming from his legendary sports betting activities, have been dismissed in court within the last three years.

But now Metro Police intelligence detectives and the attorney general's office are looking for one more shot in what has become an all-out war with Walters, who believes he's the victim of a vendetta.

"All three indictments were thrown out on technicalities," one lawman close to the case says. "Let's just get it to a jury."

Walters, a wealthy golf course developer who contributes regularly to charities and political campaigns, sees things differently.

He sees the three dismissals as a clear sign detectives have been unable to come up with any credible evidence against him.

"I think it's pretty obvious that the only motivation here is vindictiveness," he says. "Who would have ever dreamed that law enforcement, especially in Nevada, would be targeting someone for making a sports bet?"

Authorities, however, aren't persuaded that Walters is an innocent bettor. They believe his multimillion-dollar gambling operation has funneled money to illegal bookmakers across the country, an allegation Walters strongly denies.

In recent weeks intelligence detectives have been keeping an eye on two local gambling cases, one in federal court and the other in District Court, with the hope the defendants will lead them to more evidence against Walters.

The defendants, who reportedly have done business with Walters, are working out plea agreements, which means they could be witnesses by the time investigators go back to the grand jury.

Before reopening the case, the attorney general's office is waiting for the Nevada Supreme Court to decide whether to overturn the dismissal of the last two indictments. A ruling could be months away.

Over the years Walters has accused authorities of mounting a "witch hunt" against him.

Detectives, he says, have kept up the heat so they can keep $2.8 million they confiscated from him in a 1996 raid on his betting operation. Walters has become so incensed over the seizure that he has lobbied the Legislature to tighten forfeiture laws to prevent others from suffering his fate.

Walters believes Attorney General Frankie Sue Del Papa has pressed ahead with his investigation because he has not been one of her political supporters. Word has gotten back to him that Del Papa was upset about a $10,000 campaign contribution he once made to an opponent of the attorney general's.

"I think her office is completely out of control," he says. "Hopefully, the voters have seen it, and they'll act accordingly."

Walters aims most of his anger at Del Papa's top deputy and close friend, David Thompson, who Walters says has run amok at the helm of the gambling investigation.

Attorney Richard Wright, who represents Walters, agrees.

"I can't believe that honorable prosecutors would attempt a fourth indictment after years of vindictive prosecutorial efforts," he says.

Thompson, who has denied any misconduct, is at the center of another controversial case involving allegations he spearheaded a secret intelligence investigation of casino regulators, including former Gaming Control Board Chairman Bill Bible, another Del Papa political adversary.

Mike Anzalone, a former Del Papa investigator, is suing the attorney general for forcing him to resign because he wouldn't participate in the intelligence probe. The court case has provided much embarrassment to Del Papa.

And Walters says Del Papa should be embarrassed over his case, too.

He plans to keep fighting, even if the attorney general brings a record fourth indictment against him.