Indictments ‘imminent’ for LV targets

Jeff German and Jace Radke

Monday, Sept. 22, 2003 | 11:06 a.m.

Federal prosecutors have told the Las Vegas targets of the political corruption investigation linked to strip clubs that they only have days left to make deals because more indictments will be handed down as early as this week.

"They've advised us that indictments are imminent," said attorney Dominic Gentile, who represents former Clark County Commissioner Lance Malone.

Gentile said prosecutors told him late last week that Malone will be among those charged in connection with the FBI probe of strip club owner Michael Galardi. The investigation has been going on for more than two years.

"They discussed with us what they felt the indictment would include," Gentile said. "They indicated that, if we were inclined to enter a plea, they would want to discuss it with us."

But Gentile said he wasn't inclined to make a deal on Malone's behalf.

Natalie Collins, a spokeswoman with the U.S. attorney's office, and FBI spokesman Special Agent Todd Palmer declined to comment on the investigation.

Malone, Galardi and others were indicted Aug. 28 in San Diego on charges that they made illegal campaign contributions to three San Diego city councilmen to influence them to loosen restrictions on adult businesses.

Galardi made an agreement with federal prosecutors in San Diego to plead guilty to a fraud charge in exchange for testifying in a political corruption case there.

Sources close to the Las Vegas probe said prosecutors were talking to several potential targets to obtain guilty pleas in exchange for reductions in charges or lesser sentences before any indictments are returned.

Word of the pending Las Vegas indictments comes in the wake of the filing of charges in a similar political corruption probe in San Diego.

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, 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.

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

Malone and Galardi are reported to be targets of the parallel Las Vegas investigation, which became public after FBI agents raided Galardi's clubs and office. Agents also searched the offices of the San Diego councilmen the same day.

The names of Clark County Commission Chairwoman Mary Kincaid-Chauncey, former commissioners Erin Kenny and Dario Herrera, and former Las Vegas City Councilman Michael McDonald all have surfaced as either subjects or targets in the Las Vegas investigation.

Kenny has reportedly told friends and supporters that she already has struck a deal and is cooperating with the authorities.

Kincaid-Chauncey, Herrera and McDonald could not be reached for comment.

Attorney Richard Wright, who represents Kincaid-Chauncey and McDonald, also could not be reached for comment.

Herrera's lawyer, Eric Goodman, said he had no comment on the possibility of his client being approached about a deal.

In San Diego the three city councilmen are accused of accepting illegal payments from Galardi, Malone and D'Intino 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.

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