Friday, Nov. 7, 2003 | 11:41 a.m.
Clark County commissioners traded their votes for money, a sports utility vehicle and lap dances, according to a federal indictment released Thursday.
Federal prosecutors allege that Commission Chairwoman Mary Kincaid-Chauncey and former commissioners Lance Malone and Dario Herrera took thousands of dollars in exchange for using their votes and influence to help strip club owner Michael Galardi's businesses.
Galardi and former commissioner Erin Kenny pleaded guilty to charges stemming from the political corruption probe, according to documents released Thursday, and agreed to testify against others.
"When you have individuals attempting to trade votes for money it's very serious and a priority for the U.S. Attorney's Office," said Dan Bogden, U.S. Attorney for the District of Nevada. "We'll continue to investigate political corruption wherever it leads us.
"This is an ongoing investigation and we intend to move forward with it."
The indictment charges Kincaid-Chauncey, Herrera and Malone with one count each of conspiracy to commit wire fraud, and 14 counts each of wire fraud.
In addition Malone was charged with racketeering, Herrera faces eight counts of extortion, and Kincaid-Chauncey faces four extortion counts.
Unsealed Thursday were the guilty pleas of Kenny to one count of conspiracy to commit wire fraud and two counts of wire fraud, and Galardi, who pleaded to a racketeering charge. Both have agreed to cooperate in the prosecution of other defendants in the case, and Bogden said both would face jail time when sentenced.
Galardi has also agreed to forfeit $3.85 million to the government, pay $200,000 in restitution to both the City of Las Vegas and the county, and give up ownership of his clubs, Cheetahs, which is in Las Vegas, and Jaguars, which is in the county. Kenny has agreed to forfeit $70,258.53.
U.S. Magistrate Judge Robert Johnston ordered Malone, Herrera and Kincaid-Chauncey to appear in court on Nov. 21 and issued summons for them to appear.
Drawing on wiretaps, prosecutors allege that Galardi had been trying to bribe politicians, funneling $200,000 to $400,000 to commissioners. The indictment says Galardi tried to bribe public officials between 1994 and 2003, but the indictment focuses on events from 1999 to 2003.
Prosecutors say the commissioners voted to change an ordinance regulating the touching at a strip club and change zoning ordinances to help his business. The indictment alleges that the commissioners "controlled and harassed" Galardi's competitors and voted to deny a promotion for a county employee who didn't move quickly enough on a license for one of Galardi's businesses.
Galardi allegedly bought a Ford Excursion for Malone while he was serving as a commissioner, and after Malone left office, Galardi hired him and used him to deliver much of the money, prosecutors allege.
According to the indictment, at least as early as 1999 Malone had solicited money, property and services from Galardi in exchange for furthering Galardi's interests.
"Ultimately Malone became a middleman for Galardi, funneling goods, services and money to Kincaid-Chauncey, Herrera, and Malone to buy influence," Bogden said.
At one point, according to the indictment, Malone promises Galardi the three commissioners were with him on a proposal to change the so called "no touch" ordinance that restricted dancers' interaction with club patrons.
"You've had Dario from the very beginning," Malone says according to the indictment. "I mean, dude, that's your, that's your person. Erin's your person. ... Mary's your person."
Kincaid-Chauncey, who is alleged to have arranged to get free lap dances for her son and ski-school tuition for her grandson, said Thursday night she was not guilty.
"I haven't done anything," she said. "I have been accused, but I haven't bee convicted of anything. I know I'm innocent."
Her attorney, Rick Wright, said she would plead not guilty.
Attorney Dominic Gentile, who represents Malone, said he was confident that his client would be acquitted at trial.
"Lance Malone didn't break any laws," Gentile said, adding several allegations in the indictment were factually wrong.
Gentile said he believed the case against Malone will come down to the "sincerity" of the government's key witnesses, Galardi and Kenny, both of whom he said had huge incentives to strike deals with prosecutors.
The trial, Gentile said, probably would last two months and likely won't take place until well into 2005 because of the massive amount of evidence, primarily 72,000 hours of intercepted conversations, that must be reviewed.
Gentile said he had no argument with prosecutors calling Malone a "middleman" for Galardi.
"He was a lobbyist," Gentile said. "All lobbyists are middlemen."
The wiretaps show a series of conversations in which Galardi and Malone discuss giving money to the commissioners and in some cases the commissioner plead for money.
Kenny asked for money during her failed run for lieutenant governor. The indictment says on Sept. 30, 2002, they had a conversation. and Malone said Galardi had given "everybody so much money, and yet, when (he) need(s) something, (he) can't get it on."
"That's not true," Kenny is quoted as saying. "You know what, that's (expletive). You know I have come through for him on Jaguars and every other ... thing."
On Oct. 28, Kenny asked for more money, according to the indictment.
"Tell me what I've got to do, but I've gotta have money from him. ... I'm begging now. ... I'm on my knees begging."
Herrera is accused of having taken lap dances and money. In September 2001, Herrera told Galardi and Malone that he was separating from his wife "so I might need a little bit of help getting, you know, getting a place and stuff, so, I'll let you know."
Herrera's attorneys issued a statement calling the charges "as outrageous as they are untrue."
"We believe that when all of the facts are presented to a jury of Mr. Herrera's peers his innocence will be established," the statement, signed by Eric Goodman, Las Vegas Mayor Oscar Goodman's son, and David Brown.
The bribes allegedly given by Galardi included money for cars, and often the services of dancers from his clubs, according to the indictment, including:
Other issues included: the issuance of liquor licenses and zoning use permits for Jaguars, the controlling and harassing of competing strip clubs, Divas, Spearmint Rhino and Chez Moi, and the defeat of an ordinance that would have limited all touching between dancers and customers in strip clubs.
If convicted Malone could face up to five years in prison on the conspiracy charge, up to 20 years on each wire fraud charge, and 20 years on the racketeering charge. If convicted on all charges Malone could forfeit $1.45 million to the government.
Herrera and Kincaid-Chauncey could face maximum sentences of five years in prison on the conspiracy charge and 20 years on each wire fraud and extortion charge. Kincaid-Chauncey could forfeit $100,000 and Herrera could forfeit $170,000.
The wire fraud charges could also carry up to $250,000 fines.
The investigation began more than two years ago, Bogden said. It became public with the May raids by the FBI of Galardi's office and his Las Vegas clubs.
During the investigation the FBI confirmed that agents used the Patriot Act to access financial records as part of the political corruption probe.
Among those whose records were accessed were Kincaid-Chauncey, Herrera, Kenny, Malone, and Las Vegas City Councilman Michael Mack and former councilman Michael McDonald, sources said. Mack, who works as a consultant to Treasures strip club, and McDonald, who had been reported to be part of the probe, were not mentioned in any of the court documents released Thursday.
In a parallel investigation, federal authorities in San Diego raided the Galardi-owned Cheetahs there and the offices of three San Diego city councilmen on the same day the raids took place in Las Vegas.
Galardi pleaded guilty to one count of conspiracy to commit wire fraud in the San Diego case, which involves payments of illegal campaign contributions to public officials in an attempt to loosen strip club regulations in that city.
The San Diego investigation has also 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 city officials.
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