County takes steps to remove strip club licenses from Galardi

Friday, Nov. 14, 2003 | 11:22 a.m.

The Clark County Commission took the first steps today toward revoking strip-club owner Michael Galardi's licenses to operate two clubs, setting a Dec. 16 hearing that could shutter Jaguars and Leopard Lounge.

Jacqueline Holloway, director of business licensing, said the County Commission took clear steps toward revoking Galardi's licenses, but the final decision will come at a follow-up hearing scheduled for Dec. 16. County statutes do not allow for the immediate revocation of the adult cabaret and liquor licenses.

The license revocation hearing comes after Galardi pleaded guilty to federal charges in political corruption cases in Las Vegas and San Diego.

The two clubs may face separate fates.

Michael Galardi's father, Jack Galardi, has purchased Leopard Lounge as of Thursday, attorney Dominic Gentile, representing the elder Galardi, told the commissioners.

Jaguars, the far larger club, is still apparently owned by Michael Galardi.

"There really are negotiations going on here," Gentile said. "There have been negotiations on Jaguars. The negotiations are stalled."

According to the purchase agreement filed with the county, which Gentile presented to the commission during the discussion of the licensing issue, the purchase price for Leopard Lounge was $10 million and the deal was effective Thursday.

"Mike Galardi is no longer a 100 percent shareholder, or even a 1 percent shareholder," in Leopard Lounge, Gentile told the board.

The political corruption probe that brought Galardi's guilty plea has led to an agreement by former Clark County Commissioner Erin Kenny to plead guilty and cooperate with the investigation, and to the indictments of former commissioners Dario Herrera and Lance Malone and three San Diego city councilmen.

Also indicted was Clark County Commissioner Mary Kincaid-Chauncey. Kincaid-Chauncey said Wednesday that she would step down from the chairwoman's position but keep her seat while she fights the indictment on multiple charges of wire fraud, extortion by a public official and conspiracy. Kincaid-Chauncey, who said Wednesday that she did not know if she would have to abstain during today's licensing hearing on Galardi's clubs, did not attend the county hearing.

Jack Galardi will have to go through a background investigation conducted by business licensing and Metro Police investigators before he can operate Leopard Lounge. The process could take months.

The County Commission has had the opportunity to investigate Jack Galardi before, but he withdrew his application to co-own Jaguars with his son in 1999 rather than go through the process.

"He's going to have to follow the same process as anybody else who files for a license," Commissioner Yvonne Atkinson Gates said following the half-hour licensing hearing.

Gates said the county could offer Jack Galardi a temporary license during the investigation but is not obligated to grant the temporary privilege. She promised that the look into Jack Galardi's past would be thorough.

"It's important for us to do our due diligence," Gates said. "One of the things we want to do is make sure the deal, the purchase that was brought to our attention today, is a legitimate one.

"This board does not want another embarrassment the way this one has turned out to be, so we're going to be very cautious."

Gates said both clubs could be closed as of the Dec. 16 hearing. Leopard Lounge will have to win a temporary license under Jack Galardi's name. Jaguars, however, would close immediately if it remained unsold and the board revokes the license, which Gates said is likely.

Pleading guilty to federal felony crimes, as Michael Galardi has done, means that the person loses the privilege license from the county to operate an "adult cabaret" and sell liquor, she said.

"We believe if you have made a deal with them, then you certainly aren't eligible to have a license with us," she said.