Two California officials who would have sat in judgment on the actions of a former fellow regulator they used to work with have stepped aside, citing conflicts of interest.
The former gambling regulator under scrutiny by the Gambling Control Commission is Robert Lytle, former chief of the gambling enforcement unit. He left state employ in 2007 and the next day went to work as a consultant for a card room.
He is accused of receiving confidential information on the investigation of one of his clients, a card club. His gaming license, which is required for anyone working in or representing anyone in the gaming industry, has come up for review by the commission.
On February 25 two members of the commission who used to work with Lytle, stepped down. They include commission Chairman Richard Lopes, who once worked under Lytle as deputy director of the Division of Law Enforcement of the Attorney General’s Office; and Tina Littleton, who is executive director of the commission. Her reason for stepping down is a relationship with a former special agent of the enforcement division who also once worked for Lytle.
Lytle has been accused of contacting an unnamed agent who was investigating his client and obtaining unauthorized information about that investigation. That agent may or may not have been James Parker, who is in a relationship with Littleton.
Casino watchdog Cheryl Schmitt of Stand Up for California, said the situation highlights the frequently cozy relationship between the regulated and the regulators in the Golden state.
“It’s disturbing,” Schmitt said. “It seems the relationships there at the commission are much too friendly. There should be distance between the regulators and those that they regulate. Regulators should live by a required code of ethics to protect the integrity of their decision-making. Otherwise, regulators give the appearance and perception of accommodating the industry.”
