Las Vegas Sun

March 28, 2024

County’s move to shut down topless clubs could hit snags

The Clark County Commission will get a shot at revoking the liquor licenses for strip clubs at the center of a federal investigation next week -- but don't expect Jaguars or the Leopard Lounge to immediately close their doors.

A tangle of licensing requirements and probable legal action could keep the liquor flowing and the women topless in the clubs. County officials say they will move to revoke the liquor licenses of both clubs on Tuesday, a month after revocation proceedings began, but a legal appeal could stay the action even if it is approved by the County Commission.

Revocation of the "adult cabaret" licenses for both clubs is also open to appeals, but county action on that front is on hold until Michael Galardi, license holder for the clubs, is sentenced, Clark County Business Licensing Director Jacqueline Holloway explained.

The liquor license can be simpler to revoke in part because shutting down nude dancing establishments raises potentially thorny First Amendment issues, she said.

Holloway said a federal conviction and sentencing hearing for Galardi is scheduled early next month in San Diego, and that hearing could serve as the trigger for immediate county action to terminate the adult cabaret licenses.

"Clearly, the Dec. 16 hearing is based on the liquor license only at this time," Holloway said. "For the adult cabaret license, a conviction must be in place. We will rely on the decision in San Diego."

Galardi has pleaded guilty to federal charges that he bribed public officials in Las Vegas and San Diego. Former Clark County Commissioner Erin Kenny also has pleaded guilty and agreed to cooperate with federal prosecutors in the federal corruption investigation.

Commissioner Mary Kincaid-Chauncey and former Commissioners Lance Malone and Dario Herrera have been indicted but all have pleaded not guilty to multiple corruption-related counts. Three San Diego city councilmen, where Galardi had another club, also have been indicted.

Federal prosecutors allege that the politicians took cash from the strip club owner in exchange for favorable votes. The county, citing Galardi's guilty plea, took the first steps last month to revoking Galardi's right to operate clubs in unincorporated Clark County.

Clark County Deputy District Attorney Kathleen Janssen said Tuesday that she expects the commission will revoke the license for the club owned by Michael Galardi but an appeal would keep the business operating until the issue is resolved in District Court.

Galardi is following a similar path in San Diego, where last month the city's police department rejected Galardi's request to renew the annual permit for his San Diego club, Cheetahs.

Galardi's lawyer, Roger Jon Diamond, sent a notice of appeal to the San Diego city manager and police this month. Cheetahs will remain open until an appeal hearing is scheduled. If he loses the appeal, the club could be shut down.

"If we lost the administrative hearing before the city manager's office, we would go to court and challenge any denial," Diamond said. "During that time the business could remain open."

Diamond, from his office in Santa Monica, Calif., said he is not familiar with the Las Vegas situation and could not immediately comment on the issues here.

In Las Vegas the situation is complicated because Michael Galardi sold the Leopard Lounge to his father, Jack Galardi, last month.

Although Jack Galardi has purchased the Leopard Lounge, the county must approve the license for him to hold the strip club's adult cabaret and liquor licenses. Until those licenses are approved, the younger Galardi holds the right to serve liquor and conduct business with nearly naked women.

Michael Galardi also sold his 40 percent stake in Cheetahs, the strip club in the city of Las Vegas, to his father, who already owned the other part of the club. The Las Vegas City Council last month set Jan. 7 as the date to decide whether to revoke the tavern license.

For the county, despite the transfer of ownership "there's no temporary or any limited license situation" that would forestall license revocation, Janssen said. "We'll be going forward on Tuesday to revoke both licenses" for Jaguars and the Leopard Lounge.

Holloway said that although the procedures can be complex, it is important for the county to follow the licensing and revocation process carefully.

"The process is complicated and we make every effort to maintain a consistent process," she said. "We have followed every legal and procedural requirement."

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