CasaBlanca shareholder's ties to men questioned

SUN CAPITAL BUREAU

CARSON CITY -- James Ritchie is a former federal prosecutor and state gaming regulators Wednesday expressed amazement that he has associated with people with questionable backgrounds.

Ritchie received preliminary approval from the state Gaming Control Board to hold 12.3 units in the CasaBlanca hotel-casino in Mesquite, but not before he was quizzed about his ties to two individuals.

Ritchie at one time headed a U.S. Justice Department Strike Force that focused on Nevada gambling, later was head of a federal gambling study commission and has been working in the gaming industry for years.

Board Chairman Bill Bible said he found it "incredulous" that Ritchie would have associations with Emmett Munley and John Christopher Kennedy.

Bible described Munley, who lives in Las Vegas, as a person who has had "problems" with gaming regulators in the past. There were also allegations at an Indian reservation in New York that Munley had skimmed profits. And Munley withdrew his application to be licensed by the state at the Edgewater resort in Laughlin after questions arose about the source of his funds.

Bible called Kennedy "a sort of a flim flam man" who was passing himself off as head of a group that wanted to buy the Desert Inn on the Las Vegas Strip.

Bible told Ritchie, "You just wander in without doing diligence," in getting involved with people.

Ritchie said he did not know about the background of Munley.

He disclosed he had loaned Munley $400,000 without interest and without a note to allow him to invest in Louisiana gambling. Munley lost the money, but paid Ritchie back.

Munley later borrowed more money without interest and without a note from Ritchie. Since he learned of Munley's problems with state regulators, Ritchie said he has disassociated himself from Munley and asked for his money back.

Ritchie said Kennedy represented he had a group of people who wanted to buy the Desert Inn and there were a number of meetings. If the deal was completed, Ritchie was to be chief executive officer of the Desert Inn. But Kennedy balked at going forward when he was told he would have to undergo licensing.

"It became clear Kennedy could not meet the deadline he set for himself," in arranging the deal, Ritchie said. During these negotiations, Ritchie compiled a list of possible officers to head the Desert Inn.

Included was Deputy Attorney General Kirk Hendrick, who represents the gaming control board. Without Hendrick's permission, Ritchie circulated his name and resume to possible investors.

Ritchie agreed that was not appropriate and he apologized to the board. He also said that he didn't have the resources to check the background of Munley and Kennedy.

Board member Steve DuCharme said he was concerned Ritchie got involved with Kennedy, given Ritchie's law enforcement background.

Because of the concerns, the board voted to limit the license to two years and one month to see if Ritchie cleans up his associations.

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