Malone given lower bond

Jace Radke

Wednesday, Sept. 17, 2003 | 9:07 a.m.

An attorney for former Clark County Commissioner Lance Malone said the reduction of his client's bond is a sign that Malone is meeting the expectations of a federal magistrate.

U.S. Magistrate Nita Stormes reduced Malone's bond from $250,000 to $245,000 at a Tuesday hearing in San Diego after Malone demonstrated the equity in his home and sport utility vehicle was enough to cover the $245,000 bond.

Stormes also eased Malone's travel restrictions so that he can now travel anywhere in California, Utah or Nevada instead of just Southern Nevada and Southern California, said Malone's attorney, Jerry DePalma.

"I think these are acknowledgements by the court that (Malone) is doing whatever the court directs him to do," DePalma said.

Stormes had warned Malone last week that he would be jailed unless he could demonstrate he has sufficient assets to pledge as collateral.

Malone was indicted along with strip club owner Michael Galardi and others Aug. 28 on charges that they made illegal campaign contributions to three San Diego city councilmen to influence them to loosen restrictions on adult businesses.

Malone has pleaded not guilty to charges of wire fraud, extortion and racketeering in the case.

Galardi, who owns Cheetahs, the Leopard Lounge and Jaguars in Las Vegas and Cheetahs in San Diego, 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.

Malone and Galardi are both reported to be targets of a parallel political corruption investigation in Las Vegas, but no indictments or charges have been released in that case.

The Las Vegas investigation became public after Galardi's clubs and office were raided on May 14, the same day that the San Diego councilmen's offices were searched by authorities.

Clark County Commission Chairwoman Mary Kincaid-Chauncey, former commissioners Erin Kenny and Dario Herrera, and former Las Vegas City Councilman Michael McDonald are all alleged targets or subjects in the investigation that has been going on for more than two years.

Kenny has reportedly told friends and supporters that she is working with the authorities.

In San Diego, three city councilmen are accused of accepting illegal payments from Galardi, Malone, and the manager of Cheetahs San Diego, John D'Intino, in order to change a law that restricted dancers and customers from touching at strip clubs. The 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.

A "no touch" ordinance similar to San Diego's was considered and initially passed by the Clark County Commission last year before being repealed.