Attorneys: Galardi probably is stuck with guilty plea

Steve Kanigher and Jeff German

Thursday, Jan. 8, 2004 | 11:02 a.m.

Prominent local criminal defense attorneys said Wednesday that former strip club owner Michael Galardi would stand little chance of withdrawing his guilty plea in a Las Vegas political corruption case if he attempted to do so.

And even if he was able to withdraw his plea to federal racketeering charges, Galardi faces the possibility that the plea admission he signed on Oct. 24 could be used against him in trial, the attorneys said Wednesday.

"You'd have to think the odds would be very much against him," former federal prosecutor Stan Hunterton said Wednesday. "About 90 percent of the people who are charged in the federal system end up getting convicted. It may be about 80 (percent) in political corruption cases but the defendant is still the big underdog."

Las Vegas attorney David Chesnoff said he would consider helping Galardi if the embattled businessman chooses to withdraw his guilty plea.

Chesnoff, a law partner of Las Vegas Mayor Oscar Goodman, said he was contacted about two weeks ago by Galardi. Chesnoff said that Galardi, who formerly owned Cheetahs, Jaguars and the Leopard Lounge, inquired about seeking legal assistance to change his plea.

But Chesnoff said Galardi has not gotten back to him.

"I have not been retained," Chesnoff said. "But I would consider it as long as he wants to fight the case. I'm ready, willing and able to help anyone who wants to fight the government."

Galardi stipulated in the plea agreement that he participated in schemes that amounted to bribes of between $200,000 and $400,000 in money, property and services to elected officials in exchange for beneficial treatment for his businesses. The plea agreement covers a period from 1994 to May 2003 but the federal indictment concentrated on events from 1999 forward.

Former Clark County Commissioner Erin Kenny also pleaded guilty to one count of conspiracy to commit wire fraud and two counts of wire fraud in the case and has agreed to cooperate with prosecutors. County Commissioner Mary Kincaid-Chauncey and former commissioners Lance Malone and Dario Herrera have pleaded not guilty to federal charges of receiving money and services from Galardi.

Las Vegas attorney Frank Cremen, who represents Kenny, said Wednesday that his client has no intention of withdrawing her plea, even if Galardi chooses to do so.

Like Hunterton, Cremen said he thought it would be "far-fetched" for Galardi to withdraw his plea because his admission could be used against him in trial.

"I can't believe he'll do it," Cremen said. "The ramifications of that would harm Galardi. You either make a deal or you don't."

Fellow Las Vegas attorney Dominic Gentile, who represents Malone, also said he doubted Galardi could successfully withdraw his plea.

"I don't think the government will let him do it," Gentile said. "He would incur the wrath of the United States. The government would be coming after him."

Gentile, who filed a civil racketeering lawsuit against Galardi this week on behalf of Galardi's father, Jack, suggested that the younger Galardi may be looking to back out of the plea agreement as part of a desperate effort to return to the luxurious lifestyle he once had.

Since the deal was struck with prosecutors, Galardi has had to give up his lucrative topless clubs, agree to pay hefty fines and forfeiture fees and put his $20 million home up for sale. As it stands now, he has no chance of ever returning to the topless nightclub businesses, the only occupation he has known.

"Maybe reality is setting in," Gentile said. "He's starting to see the big picture."

Chesnoff said an agreement could be made to dissolve the deal with the government, but he declined to give specifics.

"A creative lawyer can certainly find some issues here," he said.

But Hunterton, a Las Vegas lawyer now in private practice, said it is "extremely rare" for guilty pleas to be successfully withdrawn in federal court because of the detailed process involved in reaching a deal. The defendant normally understands the ramifications of the agreement by the time he signs it, Hunterton said.

"The process you go through in pleading guilty in federal court is far more elaborate than in state court," he said. "It's hard to say that you don't understand the agreement."

Hunterton said he was surprised that Galardi would consider withdrawing his guilty plea "but everything about his involvement in this case surprises me."

Assistant U.S. Attorney Dan Schiess, who is involved in the case, said he had no comment on the possibility Galardi could change his plea.

Galardi has also pleaded guilty to federal charges in connection with a parallel political corruption case in San Diego. Malone, who reportedly lobbied for Galardi, and three San Diego city councilmen have pleaded not guilty to charges in that case.