Second complaint expected to be filed against Cheetahs

Sito Negron

Monday, Feb. 9, 2004 | 11:01 a.m.

A second complaint is expected to be filed against the liquor license of the topless club Cheetahs, which last week successfully delayed paying a more than $1 million fine based on an initial city complaint.

Mayor Oscar Goodman said this morning he has asked city staff to file the second complaint based on the guilty pleas last year of former co-owner Michael Galardi in a federal political corruption probe in San Diego and Las Vegas.

The first complaint filed against the license resulted in a fine of more than $1 million and was appealed by the current owner of Cheetahs Jack Galardi, who now owns 100 percent of the club.

Las Vegas ordinances allow liquor license holders to be disciplined up to $1,000 a day for each day of offenses. On Jan. 7 the City Council levied a $1.095 million fine against the license for the time period during which Michael Galardi was a part owner and committed his crimes.

Goodman said this morning that he also asked the city attorney to look into a second potential violation -- not coming to council for approval of an ownership transfer when Michael Galardi gave up his share in the company to his father.

The city rules say that ownership transfers of more than 10 percent must be approved by council. Galardi's attorney Dominic Gentile has argued that Michael Galardi simply retired his 40 percent stake in Cheetahs in October, rather than transferring any ownership interest.

On Friday Gentile argued that the city had no jurisdiction to fine Cheetahs, noting that the separate parts of the city code regulating liquor license state that a license holder must be convicted of crimes and require only that the person have committed illegal acts.

District Judge Jennifer Togliatti issued a stay of the fine to provide time to get more information from the city about what the council's intent was in passing the ordinance more than 20 years ago.

That could include transcripts of the council meetings, for example. Togliatti set Friday as the first deadline to assess the information. She did not set a deadline for ruling.

After that meeting, Gentile said he was satisfied with the judge's action.

"I came here to get a stay, and we got a stay," Gentile said.

He was not available this morning to comment on the possibility of a new complaint being filed.

William Henry, the city's chief litigation counsel, declined comment Friday.

Goodman said he does not plan to call for any special council meetings, preferring to wait until the end of the week to see how the court proceeds.

Jack Galardi's appeal of the fine -- which both sides agreed should be reduced to $1.017 million -- was a rejection of a compromise that allowed the club to stay open, Goodman has said.

"That's what courts are for and lawyers are for, but as the mayor I consider the appeal to be a slap in my face," Goodman said this morning.

The city could have revoked the license outright, something that Councilwoman Janet Moncrief proposed, he said.

Moncrief, whose ward contains Cheetahs, said Friday she still thinks the city should have revoked the license.