Feds seeking to indict 3 for racketeering

Thursday, Nov. 6, 2003 | 11:51 a.m.

Federal prosecutors were seeking indictments today in the FBI's political corruption probe involving Las Vegas strip clubs run by Michael Galardi.

Racketeering charges were being sought against County Commission Chairwoman Mary Kincaid-Chauncey and former County Commissioners Dario Herrera and Lance Malone.

It also was anticipated that court documents regarding plea agreements between federal prosecutors and Galardi and former County Commissioner Erin Kenny could be unsealed as early as today. Both have reportedly been cooperating in the ongoing corruption investigation.

The charges against Kincaid-Chauncey, Herrera and Malone involve alleged efforts to corruptly influence County Commission matters relating to Galardi and his clubs.

The indictments would bring to a head an FBI investigation that has been ongoing for more than than two years, one that has made use of extensive court-approved wiretaps.

Galardi pleaded guilty in September to one count of conspiracy to commit wire fraud in a parallel investigation in San Diego involving an alleged scheme to bribe three San Diego councilmen.

The San Diego investigation has resulted in the indictments of Malone and three San Diego city councilmen. Malone, Galardi and others were indicted Aug. 28 in San Diego on charges that they made illegal campaign contributions to the three councilmen to influence them to change a policy that didn't allow patrons to touch topless dancers.

Malone has pleaded not guilty to charges of wire fraud, extortion and racketeering in the case, and is free on $245,000 bond.

Galardi, who owns Cheetahs in San Diego along with his Las Vegas clubs, Jaguars and Leopard Lounge, originally pleaded not guilty to the same charges, but has since pleaded guilty to one count of conspiracy to commit wire fraud. He has also agreed to testify for prosecutors in the case. This week Galardi turned over his interests in Cheetahs in Las Vegas to his father Jack Galardi.

Cheetahs San Diego manager John D'Intino also pleaded guilty to a charge of conspiracy to commit wire fraud in San Diego.

Both investigations became public after FBI agents raided Galardi's clubs and offices in May. Agents also searched the offices of the San Diego councilmen the same day.

The FBI has picked up records from Clark County that sources say involved documents and meeting minutes relating to business licences, land-use and adult-use ordinances. FBI officials have said that all the documents from the county were matters of public record. A 'no-touch' ordinance similar to San Diego's was considered and initially passed by the Clark County Commission last year before being repealed.

In San Diego three city councilmen are accused of accepting illegal payments from Galardi, Malone, and D'Intino, in order to change the "no-touch' law there, but that matter never made it onto the agenda of a council committee that reviews proposed laws.

All three councilmen, Charles Lewis, Michael Zucchet and Ralph Inzunza, have maintained their innocence.