Judge tosses charges against Walters

Kim Smith

Wednesday, Oct. 2, 2002 | 11:03 a.m.

Golf course developer Billy Walters' worries may finally be over after a judge Tuesday morning dismissed yet another indictment against the politically connected Las Vegas resident.

Chief District Court Judge Mark Gibbons ruled that a third indictment already thrown out against Walters by the Nevada Supreme Court was a superseding indictment, thus rendering the original indictment returned in April 1998 moot.

Unless the Nevada Attorney General's Office successfully appeals Gibbons' decision to the state's high court, Walters will never face trial on those money laundering charges.

A fourth indictment cannot be sought because the statute of limitations has expired, said Chief Criminal Deputy Attorney General Gerald Gardner.

"We have to think about appealing (the ruling)," Gardner said. "We will evaluate all of our options."

Walters and three associates, Daniel Pray, James Hanley and John Tognino of New York, were indicted on money-laundering charges in April 1998, several months after authorities seized about $3 million in cash in lock boxes that belonged to Walters.

Authorities alleged the men unlawfully transferred proceeds from a massive sports betting operation throughout the country and overseas.

The April 1998 indictment was dismissed because of defects, prompting the Nevada attorney general's office to file an appeal with the state Supreme Court. Before the high court could rule on the appeal, the AG's office obtained a second indictment against the men.

The second indictment, too, was thrown out and again, the AG's office appealed. A third indictment was obtained before the high court could rule on the appeal.

Ultimately, the Supreme Court agreed with the lower court's decision to toss out the second and third indictments. In the middle of the battles, however, the high court reinstated the first indictment.

Walters' attorneys successfully argued that the first indictment was rendered moot by the third indictment.

Defense attorneys Richard Wright, JoNell Thomas and John Moran Jr. have long argued that the attorney general's office had ulterior motives in pursuing Walters and engaged in misconduct in its dogged pursuit of him.

In fact, Wright noted Tuesday that the acts alleged in the first two indictments were not even considered crimes under existing Nevada law at the time they were committed.

Gibbons ruled Tuesday that he found no misconduct.

After Gibbons' ruling Wright said Walters' business ventures have been impacted greatly because of banks' reluctance to finance someone who has had a criminal indictment hanging over his head for so long.

Walters was not in court Tuesday and Wright said he may not yet have returned from attending the Ryder Cup in Sutton Coldfield, England.

Gibbons made the right decision, Wright said.

"This has been a long and ugly contested matter and we expect them to do the correct thing and not pursue further litigation," Wright said.

Now that the AG's office is taking up the slack for the U.S. Attorney's Office -- which is now devoting more time to the war on terrorism -- Wright said he believes the office should have "better things to do than to pursue a six-year-old case."

Moran said that finally, "justice has been done."