Prosecutor replays Malone tape in closing arguments

Elliot Spagat

Thursday, July 7, 2005 | 11:02 a.m.

SAN DIEGO -- A strip club lobbyist recruited three San Diego councilmen to accept campaign contributions in exchange for efforts to repeal a ban on customers touching dancers at nude bars, a federal prosecutor said Wednesday in closing arguments of a corruption trial.

Councilmen Michael Zucchet and Ralph Inzunza are on trial along with Lance Malone, a former Clark County commissioner and lobbyist for Las Vegas strip club owner Michael Galardi, who owned a San Diego club called Cheetahs.

The third councilman, Charles Lewis, died of liver illness last year at age 37.

Assistant U.S. Attorney John Rice told jurors that Inzunza helped raise money from Malone for Zucchet's 2002 campaign, expecting Inzunza to deliver enough votes on the City Council to overturn the no-touch law. The law was adopted in 2000 and was never repealed.

"No one's going to stand on a street corner and say, 'Hey, I'll take a bribe in return for helping you.' That's not they way it works," Rice argued.

The prosecutor played a series of secretly recorded conversations dating back to 2001 between Malone and his boss, Galardi, and between Malone and the three councilmen.

In a tape from July 2002, Inzunza referred to Zucchet as "my boy" and told Malone that Zucchet needed money.

"There's one thing that these numerous conversations that we listen to make dreadfully clear. There was only one thing on Lance Malone's mind when he came to San Diego: Get rid of no-touch," Rice said.

Rice said Malone and the councilmen developed a scheme to slip the repeal of the no-touch law into a broader set of regulations governing adult entertainment. The prosecutor used a large screen to show photographs of the defendants with dollar signs next to each one.

The screen showed the phrases "disguised money," "sham issues," "bogus e-mails," "counterfeit concerned citizens."

The councilmen were indicted in 2003 on charges of fraud and conspiracy to commit wire fraud. Zucchet and Inzunza also were charged with extortion. Prosecutors allege that the councilmen received cash bribes and campaign contributions totaling $34,500 between July 2001 and April 2003.

Galardi was a key prosecution witness and testified last month that he hatched the plan to bribe the councilmen.

He pleaded guilty to conspiracy and is awaiting sentencing. He also has pleaded guilty in a parallel corruption probe in Las Vegas, which is scheduled for trial in January.

The government played a profanity-laced tape in which Galardi complained to Malone in February 2003 that the councilmen weren't doing enough to overturn the ban.

"Why is Mr. Galardi so upset?" Rice asked. "Because (the councilmen) are not coming through with their part of the agreement."

The trial is nearing an end as Zucchet prepares to become interim mayor. As San Diego's deputy mayor -- an appointed and largely ceremonial post -- Zucchet is in line to replace Dick Murphy when the mayor's resignation takes effect July 15.

Murphy is resigning seven months into his second term amid a growing pension-fund scandal. An election to replace him is scheduled July 26. If no one wins a majority, the top two finishers will compete in a runoff Nov. 8.

Prosecutors are expected to resume closing arguments today.