Council sets date for decision on strip club license

Sito Negron

Thursday, Nov. 6, 2003 | 11:46 a.m.

Despite a change within the owner corporation of Cheetahs strip club, the Las Vegas City Council on Wednesday set Jan. 7 as the date to decide whether to revoke the tavern license held by the club's owner, La Fuente Inc.

Michael Galardi, who pleaded guilty Sept. 8 in San Diego to one count of conspiracy to commit wire fraud stemming from government charges that he tried to bribe three San Diego City Council members, no longer owns any interest in Cheetah's, said Dominic Gentile, the lawyer for the new sole owner, Jack Galardi, Michael's father.

A nearly six-month-long FBI probe into possible public corruption in the Las Vegas Valley was launched at the same time as the San Diego cases, but a Las Vegas grand jury has yet to publicly issue any indictments. The indictments are believed to be imminent, sources close to the case have said.

Two former Las Vegas city councilmen, two former Clark County commissioners and one current commissioner have been identified as subjects or targets of the investigation that started with raids at the Jaguars strip club in Clark County and Cheetahs in Las Vegas. Michael Galardi had a stake in both clubs at the time.

But now, Gentile told the council, Michael Galardi "has been 86'd from the premises" of Cheetahs. Gentile produced documents he said showed that the younger Galardi had given up his interest in La Fuente and had agreed not to set foot in Cheetahs.

Michael Galardi had been a 40 percent owner in La Fuente prior to the agreement, in which he retired his shares of stock in the company in exchange for his father forgiving a debt that totaled close to $4.5 million. Jack Galardi owned the other 60 percent, and becomes the sole owner of La Fuente.

Gentile argued that because Michael Galardi no longer is associated with La Fuente and Cheetahs, there is no reason for the city to pursue its complaint.

The complaint, Gentile argued, was in reaction to Michael Galardi's actions in San Diego, where Jack Galardi has no interests.

But Deputy City Attorney Bill Henry said the complaint is against the licensee, La Fuente Inc., not Michael Galardi. He said the municipal code provides that the licensee may be subject to disciplinary action if a principal broke the law related to the same or a similar business. When the complaint was made, Michael Galardi was a principal in the company, Henry said.

The council vote to set a hearing date for the complaint was unanimous, with Ward 6 Councilman Michael Mack abstaining because he is a consultant for Treasures, a competing strip club. Mayor Oscar Goodman, who disclosed that Gentile is a consultant for the city in relation to a civil case against the mayor, voted on the item.

Gentile said Jack Galardi also is negotiating with Michael Galardi for the purchase of Jaguars and the Leopard Lounge, two strip clubs in Clark County in which the younger Galardi has an interest.

Federal authorities in San Diego say Michael Galardi and former Clark County Commissioner Lance Malone paid San Diego city officials to lift a ban on contact between topless dancers and their customers. Malone and three San Diego city councilmen await trial on public corruption charges.

In Las Vegas, sources say that indictments are imminent, stemming from the May raids of Jaguars, Cheetahs and the Leopard Lounge. Based upon what happened in San Diego, Galardi is expected to strike a plea bargain in the Las Vegas cases too, if he hasn't already.

The other subjects or targets of the Las Vegas investigation include former Las Vegas city councilmen Malone and Michael McDonald, former Clark County Commissioners Erin Kenny and Dario Herrera, and Mary Kincaid-Chauncey, a current commissioner.

Mack's name became linked to that list in recent days when his name popped up with their names on a list of people whose financial records were obtained by federal officials under the Patriot Act's provision for money laundering investigations. A video showing Mack in one of the clubs was one of the items seized by FBI agents during the raids.

Kenny was named in a sealed criminal complaint and has reportedly told her friends that she has struck a deal with federal authorities to cooperate in exchange for leniency. Kenny has refused to comment on the matter publicly.