Legislation could help gambler regain millions

Brendan Riley

Friday, March 16, 2001 | 9:48 a.m.

CARSON CITY -- A key lawmaker is moving ahead with a bill that could help Las Vegas golf course developer and high-rolling gambler Billy Walters get back $2.8 million seized in an alleged money-laundering case.

Senate Judiciary Chairman Mark James said Thursday that he will amend his Senate Bill 36 to ensure half of the money seized yearly by authorities goes to education instead of just law enforcement.

But James said he doesn't plan to change a proposed tougher standard that authorities would have to meet in property seizure cases. A Judiciary Committee vote on SB36 could occur early next week.

Walters has said he favors SB36, but added the measure wouldn't affect his case. However, Walters' lawyer has said he'd take advantage of any changes in state law that might help his client get back the money seized in December 1996.

Prosecutors say the standards for property seizures under existing Nevada law mirror those in most other states, and only a handful have laws that make it tougher for authorities to hold property pending the outcome of criminal cases.

The standard in Nevada law for seizing someone's property requires authorities to show by "a preponderance of evidence" that property forfeiture is warranted. Under SB36, the new, higher standard would be "clear and convincing evidence."

Deputy District Attorney Bernie Zadrowski said during a Judiciary hearing last month that the effect of passing James' SB36 "would be to benefit drug dealers and pimps" whose property is seized when they're arrested.

The comment provoked James, who said, "They're not a drug dealer or a pimp until proven guilty."

James also said that while he talked to Walters' lawyer, Rick Wright, about SB36, Wright wasn't the source of the bill. He said other lawyers have endorsed the concept of a higher standard, and he's had concerns about the forfeiture standards for years.

The legislator also questioned whether Walters' locked-up millions would be affected because SB36, if signed into law, would apply to future cases and not be retroactive.

Wright said he didn't know whether the bill could apply retroactively, but as Walters' lawyer he'd argue that it does -- unless there was specific wording in the law saying otherwise. SB36 doesn't have a definite effective date.

Walters' money was seized in December 1996 and remains in an interest-bearing bank account pending resolution of the criminal case against him.

Prosecutors contend Walters participated in a conspiracy to illegally place bets with bookmakers in New York and then transport the winnings back to Nevada.

But three grand jury indictments against Walters have been thrown out. The state attorney general's office has appealed to the Nevada Supreme Court to reinstate the case.