Cathy Tull, former chief marketing officer for the tourism agency, pleaded no contest through her lawyer to a misdemeanor charge. She had been charged with felonies.
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The action comes two years after the state Ethics Commission opened an investigation of Rossi Ralenkotter as he was about to retire from the influential agency.
The talks with prosecutors could allow the former Las Vegas Convention and Visitors Authority CEO to plead guilty to lesser charges, according to a source.
Cloobeck left Diamond International Resorts in 2016 to pursue other business ventures and remains a major Democratic donor and local philanthropist.