Grand jury may meet on FBI’s club sting

Jace Radke

Tuesday, May 20, 2003 | 10:50 a.m.

A federal grand jury could hear testimony today in connection with search warrants served last week at local strip clubs as part of a two-year FBI investigation into public corruption.

Generally federal grand juries are convened on Tuesdays and Wednesdays inside the George Federal Building, but no one is confirming whether any of the politicians named in the search warrants will be testifying today, or if a grand jury will be seated.

"A grand jury is a confidential, secret proceeding and I'm not permitted to confirm if one is taking place," U.S. Attorney spokeswoman Natalie Collins said.

Las Vegas City Councilman Michael McDonald was subpoenaed last week to appear before a grand jury in connection with the case, a source close to the investigation said.

During a news conference Monday McDonald would not say if he was going to testify today, and his attorney Richard Wright also would not comment.

The FBI and Metro Police served search warrants at Cheetahs and Jaguars strip clubs and an office owned by Jack Galardi and his son Michael Galardi. An undisclosed local residence was also searched.

According to the warrants, authorities were looking for documentation of payments or gifts made by the Galardis to current and former politicians including McDonald, County Commissioner Mary Kincaid-Chauncey and former County Commissioners Erin Kenny and Dario Herrera.

Another central figure in the investigation is former Clark County Commissioner Lance Malone, a former Metro Police officer who went to work for the Galardis as a lobbyist after lost an election in 2000, sources close to the investigation said.

Malone was not named in the search warrants and has been unreachable since the warrants were served.

Kincaid-Chauncey would not comment this morning on reports that she had listened to a tape of herself discussing a $5,000 payment delivered by Malone on behalf of Mike Galardi.

She also would not comment on reports that she had received a letter from authorities advising her that she is a target of the investigation.

Kincaid-Chauncey told the Sun last week that the Galardis had contributed to a trust fund, but declined further elaboration. A county source close to the commission chairwoman described the fund as a scholarship program for young people. Kincaid-Chauncey has worked closely with foster children.

The other people who reportedly have received target letters are Herrera and Kenny.

Herrera's lawyer, Eric Goodman, the son of Las Vegas Mayor Oscar Goodman, said he could comment on any aspect of the FBI investigation. Herrera's cell phone has been disconnected and other efforts to reach him Tuesday were not successful.

Kenny has not responded to numerous telephone messages.

Malone also has not returned messages on his cell phone.

No charges have been filed against anyone named in the search warrants, Malone or the Galardis, but grand jury testimony could lead to indictments in the case.

A grand jury does not determine guilt or innocence, but only whether there is probable cause to believe that a crime has been committed and that a specific person or persons committed it. If the grand jury finds probable cause it will return a written indictment, and a trial follows.

The grand jury normally hears only evidence presented by an attorney for the government, which has the burden of proof. Once selected from a jury pool the 23-member panel is allowed to question the witnesses brought before it by the government.