FBI agents allegedly took comps at Galardi clubs

Jace Radke

Thursday, Sept. 25, 2003 | 11:27 a.m.

Federal authorities are investigating allegations that FBI agents received comps at Michael Galardi's strip clubs.

"We're aware of the allegations, and we're addressing them," FBI spokesman Special Agent Daron Borst said.

Borst said he did not know who was making the allegations or whether the allegations are being investigated by the FBI or by the Justice Department.

Galardi is a key figure in FBI political corruption investigations in San Diego and Las Vegas. Galardi has already pleaded guilty to one count of conspiracy to commit wire fraud in the San Diego case that involves payments of illegal campaign contributions to public officials in an attempt to loosen strip club regulations in that city.

Officials with the U.S. attorney's office in Las Vegas had no comment on the claims that federal agents received comps at Jaguars, Leopard Lounge or Cheetahs, Galardi's Las Vegas clubs.

No indictments have been released in the Las Vegas investigation, although Galardi and current and former Clark County politicians are said to be targets.

FBI officials said that it wouldn't be unusual for Galardi to have business cards of agents in his possession, because agents are routinely going to businesses to track leads and make contact with management.

Borst said he had no comment on the possibility that similar allegations of comps may have been what caused a switch of lead prosecutors in the case by the U.S. Attorney's office. Assistant U.S. Attorney Eric Johnson has been replaced on the case by Assistant U.S. Attorney Dan Schiess.

Natalie Collins, a spokeswoman with the U.S. Attorney's office, refused to comment on why Schiess had replaced Johnson on the case.

The San Diego investigation has resulted in the indictments of former County Commissioner Lance 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 three San Diego city 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, 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 both are reported to be targets of the parallel Las Vegas investigation, which 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 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 potential 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.

Last week the FBI 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.