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November 27, 2009

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Sex favors allegedly arranged for cops

Thursday, Dec. 2, 2004 | 11:05 a.m.

Metro Police and the Clark County district attorney's office officials are frustrated that the FBI hasn't given them much information on allegations that officers and prosecutors took comps and sexual favors.

Former strip club owner Michael Galardi, who has pleaded guilty to bribing officials in a political corruption case, has told the FBI that he gave police and prosecutors comps and arranged for sexual favors.

Galardi is cooperating with federal investigators, but the FBI is keeping Sheriff Bill Young and Clark County District Attorney David Roger in the dark about who Galardi has named.

Metro Police Undersheriff Doug Gillespie said that he and Young feel that their hands are tied without knowing which of their officers have been named by Galardi.

"It's very frustrating to us that we don't have the information to conduct an internal inquiry, and we know that this issue is going to linger until we get that information," Gillespie said. "The allegations of employee misconduct are out there and we want to investigate them.

"We want to clear the name of the organization."

Gillespie said the FBI has told police about the allegations and that the FBI has found that no crimes were committed.

"They haven't told us a whole lot in regards to the allegations, but my understanding is that (the FBI's) interpretation is that none of the allegations rise to the level of a crime," Gillespie said. "We have our own policies however, and anytime we receive information of possible employee misconduct we have an obligation to look into it."

Gillespie said that the department also has a responsibility to the officers who have been named and their reputations.

Galardi told the FBI that about two dozen Metro officers and county prosecutors received free lap dances, drinks and sexual favors at his clubs.

Roger said that he doesn't even know for sure what the allegations are that have been made against his prosecutors.

"It's frustrating," Roger said. "All that I'm hearing about are rumors, but no one has told me what the allegations are. I've spoken to the U.S. attorney, but they are being very tight-lipped."

Special Agent David Schrom, a spokesman with the FBI, declined comment, saying that the political corruption case involving Galardi is part of, "an ongoing investigation, and the FBI does not comment on ongoing investigations."

Natalie Collins, a spokeswoman for Nevada's U.S. Attorney Dan Bogden, said that Justice Department policy precludes comment on ongoing investigations and information that is not part of the public court record.

Clark County Manager Thom Reilly said that when he heard about the Galardi allegations he called the FBI and was told that investigators had no interest in any Clark County employees as targets or subjects of the investigation.

Galardi has already pleaded guilty to federal charges involving the bribing of outgoing Clark County Commissioner Mary Kincaid-Chauncey and former Commissioners Lance Malone, Darrio Herrera and Erin Kenny with money and gifts in exchange for favors for the clubs he owned at the time: Cheetahs, Jaguars and Leopard Lounge.

Like Galardi, Kenny has also entered into a plea agreement with federal prosecutors and is cooperating with their case against Kincaid-Chauncey, Malone and Herrera.

The FBI has compiled more than 120,000 wiretap intercepts in connection with the case that is tentatively set to go to trial in U.S. District Court sometime next year. The tapes allegedly contain evidence that Kincaid-Chauncey, Herrera and Malone took thousands of dollars from Galardi in exchange for their votes and influence over matters involving the strip clubs.

This is not the first time that allegations made by Galardi implicating authorities in possible wrongdoing have surfaced in the case.

Assistant U.S. Attorney Eric Johnson, who was originally assigned to prosecute the corruption case, was removed from the case after Galardi made allegations that Johnson had visited his clubs and received gifts and comps. Johnson denied the allegations saying that he had never been in one of Galardi's clubs and had never met Galardi prior to becoming involved in the case.

A Justice Department investigation found that the charges against him were not supported by a preponderance of the evidence, and Johnson was cleared of any wrongdoing. Johnson has said in the past that he was removed from the case because of a potential conflict of interest created by a prosecutor handling a case against someone accusing him of wrongdoing.

While the strip club portion of the FBI investigation is awaiting trial, agents are also investigating developers who may have paid commissioners to influence their votes.

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