Witness tampering by defense probed in Binion trial

Monday, July 19, 2004 | 11:03 a.m.

District Attorney David Roger said today his office is conducting a criminal investigation into witness tampering on the part of the defense in the Ted Binion murder case.

Roger said the probe, which has made use of electronic surveillance, focuses on the payment of $35,000 to a key prosecution witness by the "inner circle" of the defense team representing Sandy Murphy. She is a former Binion girlfriend accused of killing the 55-year-old casino man in September 1998.

Murphy, who once lived with Binion, and her co-defendant and former lover, Rick Tabish, were convicted in May 2000 of killing Binion. Their convictions were overturned last year by the Nevada Supreme Court. They are expected to be retried in the courtroom of District Judge Joseph Bonaventure on Oct. 11.

At least three people are targets of the district attorney's investigation but, because the probe is ongoing, Roger refused to reveal their identities.

The investigation centers on reported attempts to bribe prosecution witness Steven Kurt Gratzer, who has given the defense a sworn affidavit that last week formed the basis of a prosecutorial misconduct motion in District Court, Roger said.

Gratzer, who grew up with Tabish in Missoula, Mont., acknowledged in an interview with prosecutors in Las Vegas a month ago that defense team associates gave him $35,000 toward his legal fees in criminal cases in Montana.

He has faced drug possession charges and charges of driving under the influence of alcohol in Missoula.

"Gratzer has cooperated with us and confirmed that he received paid legal services," Roger said. "I don't think they were looking to become lifelong friends by helping him out with his legal problems. There is no doubt the money was intended to curry favor with him."

Murphy's lawyer, Michael Cristalli, could not be reached for comment this morning.

But Murphy's former lead attorney, Herb Sachs, criticized the probe.

"This shows the weakness of their case," Sachs said. "This shows that they will do anything to get a conviction."

Roger said he informed Cristalli two weeks ago about the investigation. This was before Cristalli filed a motion in District Court on Friday accusing prosecutors of misconduct in their handling of Gratzer prior to the first murder trial. Cristalli submitted an affidavit from Gratzer, which was taken nearly two years ago, to support his allegations.

In the affidavit, Gratzer contends that Murphy knew nothing about the plot to kill Binion and that Roger, who tried the first case, and his co-prosecutor, David Wall, withheld evidence favoring Murphy.

Cristalli also contended in the motion, which seeks to dismiss the charges against Murphy, that Gratzer's testimony is clouded by his acceptance of $20,000 in reward money offered by Binion's estate.

Gratzer, who has been a shaky witness for prosecutors at times, and six other witnesses shared a $100,000 reward after the trial.

Roger has denied any misconduct in dealing with Gratzer, who testified with immunity at the trial, that Tabish sought his help in killing Binion.

The witness tampering investigation has been taking place for about a year, Roger said. He would not disclose whether the electronic surveillance occurred in Montana, Las Vegas or in both places.

There were allegations of witness tampering in the first trial.

Jason Frazer, a former Tabish business partner, testified that Tabish tried to involve him in a plot to pay alibi witnesses.

Prosecutors also accused Murphy during the trial of trying to manipulate key prosecution witnesses.

Her defense the past several years has been bankrolled by William Fuller, a wealthy but mysterious mining executive in his 80s who has shied away from publicity.

Roger refused to say whether Fuller has come under scrutiny in the investigation.