Hi. This scenario came across today as I played a game against Rhino. He was carrying an object and my opponent declared using his CCE against my V Criminal.

Must Rhino use the object first before using CCE?

Yes. When carrying an object, you HAVE to use it for Close combat. However, you can use Range while holding an object.

So with this, CCE cannot be used while using an object.

Ghost rider is correct: He would have to use the object if he tried to make a close combat attack while carrying an object.