Galardi sues son over LV topless club

Jace Radke

Tuesday, Jan. 6, 2004 | 11:03 a.m.

Jack Galardi is suing his son, Michael Galardi, claiming that the younger man embezzled money and diverted dancers away from their co-owned strip club to help establish a posh new club.

The suit filed Monday in Clark County District Court alleges that Michael Galardi took more than $530,000 from Cheetahs in Las Vegas and diverted those funds to Jaguars, located outside city limits.

The suit alleges it was Michael Galardi's intent to "destroy and or damage the business and property" of La Fuente Inc., the Jack Galardi-owned company that runs Cheetahs.

Dominic Gentile, Jack Galardi's lawyer, said his client feels badly about the suit, but had to do what needed to be done.

"(Jack Galardi) was the major shareholder in the club, but he spent a lot of time in Atlanta, where Galardi South is located," Gentile said. "It wasn't until he bought Jaguars and got a look at the books that he found out what was going on."

Jack Galardi owned 60 percent of Cheetahs during the time the alleged embezzlements occurred.

A call to Michael Galardi's attorney was not immediately returned this morning.

The 15-page suit lists alleged embezzlements from Cheetahs between Jan. 1, 1999 and May 31, 2003, each estimated at more than $10,000.

"I don't know an exact amount that was taken, but it looks like it was happening almost daily," Gentile said.

The suit seeks three times the actual damages sustained and attorneys' fees.

Michael Galardi also took advantage of confidential information about dancers at Cheetahs, using home addresses and phone numbers to contact them about working at Jaguars, according to the suit.

Jaguars and Michael Galardi are at the center of a federal public corruption case in Las Vegas, and Galardi is also the key figure in a similar probe in San Diego. Galardi pleaded guilty to federal charges in the probes that allege he paid politicians in order to benefit his businesses.

Current County Commissioner Mary Kincaid-Chauncey and two former commissioners, Dario Herrera and Lance Malone, have also been charged in connection with the federal probe in Las Vegas. Former County Commissioner Erin Kenny has pleaded guilty to wire fraud charges in the case.

Michael Galardi's clubs, Jaguars and the Leopard Lounge, as well as his shares of Cheetahs, have been purchased by his father. The County Commission has stripped the liquor licenses from Jaguars and the Leopard Lounge, and a hearing is scheduled for Wednesday before the Las Vegas City Council to determine if the tavern license for Cheetahs will be revoked. Las Vegas City Councilwoman Janet Moncrief is calling for the revocation of the license.

While arguing on behalf of Jack Galardi to keep liquor and tavern licenses for the clubs, Gentile has continually tried to separate his client from Michael Galardi, and the lawsuit may prove his point.

"I think it's safe to say I'm not looking out for his (Michael Galardi's) best interest," Gentile said.