Las Vegas Sun

March 29, 2024

Galardi hopes to win back liquor license

In a 6-0 vote this morning the Clark County commissioners revoked the liquor license for the Leopard Lounge topless club after revoking the license for Jaguars on Tuesday.

Jaguars and its former owner, Michael Galardi, are at the center of a federal public corruption case in Las Vegas. Galardi is also at the center of a probe in San Diego.

Dominic Gentile, attorney for strip club owner Jack Galardi, Michael Galardi's father, asked the commissioners to stay the revocations until they could be reviewed by a court saying that were infringing on his client's constitutionally protected property rights.

"We will go to court," Gentile said after the hearing. "I don't know if it will be today, but it will be soon."

He said he was "not surprised they did this because it's a political decision."

Current Commissioner Mary Kincaid-Chauncey and two former commissioners, Erin Kenny and Launce Malone, have also been named in the federal probe.

In a stipulation agreed to before District Judge Jennifer Togliatti on Tuesday evening, Gentile won the right to try to change the minds of the commissioners who voted 6-0 Tuesday to pull the liquor license for Jaguars.

Jaguars and the Leopard Lounge previously were owned by Michael Galardi, but have been sold to his father, Jack Galardi. The younger Galardi pleaded guilty to federal charges in a political corruption probe in Las Vegas and San Diego, and that makes him unsuitable to hold such licenses, county officials said.

A third club formerly owned by Michael Galardi, Cheetahs, is within the Las Vegas city limits, where the City Council set a Jan. 7 hearing on whether to revoke the tavern license. Michael Galardi, who owned 40 percent of the club, has sold his stake to his father.

Commissioner Bruce Woodbury made the motion to revoke the Leopard Lounge liquor license.

"The record is clear that Michael Galardi admitted to corrupt and criminal activity, and it makes him unsuitable to hold the license," Woodbury said.

Gentile argued that county code makes it clear that the adult cabaret licenses for the clubs include liquor licenses and that taking away only the liquor portion deprives his client of his due process rights.

"There's no such thing as a topless dance license without a liquor license according to their rules," Gentile said. "They're making it up as they go."

Jaguars did reopen Tuesday night without allowing any alcohol sales, and county staff was to be dispatched to the club to make sure that alcohol wasn't being sold.

During Tuesday's hearing before Togliatti, Gentile and Jack Galardi's other attorney Suzanne Coe argued that their client is being unfairly treated by the commission and the department of business licensing.

"We put in for a temporary license and they say we can't have one," Coe said. "They (the county) say we don't own anything, and we say we do. They're making things up every time we turn around, and the requirements are just a complete vague mess."

Clark County Deputy District Attorney Kathleen Janssen said that a temporary liquor license cannot be granted to Jack Galardi because the underlying license that belonged to Michael Galardi is not in good standing.

Jack Galardi, who owns topless clubs in Atlanta, Miami, Tampa and other Southeastern cities, has applied for a liquor license for the clubs, but a background investigation has not yet been completed by Metro Police, Janssen said.

Janssen said that Jack Galardi's application was put on the next board agenda scheduled for January, but was not completed in time to be discussed at Tuesday's meeting.

"(Jack Galardi) has an extensive number of similar adult entertainment businesses and it takes some time for Metro Police to get travel funds and conduct an investigation across the country," Janssen said. "This kind of investigation may not take as long for someone who has similar businesses locally because we already have background compiled and an update may be all that's needed."

Revocation of the adult cabaret licenses for the clubs could also occur, but action on that issue is on hold until Michael Galardi is sentenced, county officials said.

"He (Michael Galardi) has not been convicted yet," said Marc Cook, Michael Galardi's lawyer. "There is a plea agreement, but there is ample case law that he has not been convicted."

Gentile argued that a liquor license is tied to the adult cabaret license in county regulations making for "a self-contradictory, unwieldy ordinance" that does not meet the standards of the first amendment.

"Over the last 10 years the Supreme Court has been very active in issues dealing with the adult entertainment and liquor licenses, and the procedures for Clark County are clearly an archaic mess," Gentile said. "While we're not happy about the situation at least we have the chance to advise the county of the problems."

Janssen said that she didn't see anything to stop the clubs from applying for exotic dance licenses and converting to all nude dancing.

"The county is basically telling us that, 'We're not going to let you have alcohol, but we'll let you take your pants off,' " Gentile said.

Togliatti told Gentile during Tuesday's court hearing that if after speaking to the commissioners Wednesday he still felt his client's First Amendment rights were being violated he could appear before her again to ask for relief.

Kincaid-Chauncey abstained from the votes because of her connection to the political corruption investigation involving Michael Galardi.

Kincaid-Chauncey and former commissioners Lance Malone and Dario Herrera have been indicted, but have all pleaded not guilty to federal charges that they accepted money and services from Michael Galardi in exchange for political favors.

Former commissioner Erin Kenny has pleaded guilty and agreed to cooperate with federal prosecutors in the investigation.

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