Malone attorneys to quiz Galardi this week

Monday, June 13, 2005 | 11 a.m.

SAN DIEGO -- After days of potentially damaging testimony from the head of a two-state chain of strip clubs, the attorneys for former Clark County commissioner Lance Malone and three city officials here should have the opportunity to cross examine the witness this week.

Michael Galardi, who lost his small empire of strip clubs in Las Vegas and a single club in San Diego when he pleaded guilty to bribing public officials and agreed to cooperate with federal prosecutors, has characterized thousands of dollars in campaign contributions in San Diego as bribes. He said Malone was his "bag man."

Malone faces four years in federal prison for charges that stem from his lobbying to overturn the "no touch" rule that banned Galardi's dancers from physical contact with customers at the San Diego Cheetahs. Galardi has said the rule imposed in 2000 financially crippled the club.

Malone faces similar charges in a parallel prosecution in Las Vegas expected to begin next year.

Dominic Gentile, Malone's attorney, said over the weekend that Galardi's testimony is vulnerable to cross-examination. Defense attorneys are focusing on their opportunity to question the former strip club owner, probably next week.

"It is definitely going to be important," Gentile said.

Defense attorneys have said they will bring up charges that Galardi made against Eric Johnson, an assistant U.S. attorney in Las Vegas. After Galardi was charged in 2003 -- but before he agreed to cooperate with the government -- Galardi said that Johnson, who was then leading the investigation into the alleged cash-for-influence scandal in Las Vegas, had accepted comps at his strip clubs.

Johnson, who was taken off the strip-club case, denied the accusation and a subsequent federal investigation found Johnson's denial to be "credible." Defense attorneys believe that bringing up the Johnson issue will damage Galardi's credibility.

It places the government in a tight spot, trial participants believe. Either the government allows Galardi's accusation to stand and impeaches the reputation of one of their colleagues, or Galardi withdraws his charge and damages his own truthfulness.

Federal prosecutors had tried to bar discussion of the allegations against Johnson, but U.S. District Court Judge Jeffrey Miller denied the request. In response to a request from Assistant U.S. Attorney Robert Ciaffa, Miller on Friday repeated that the issue would be allowed into the San Diego trial.

He also repeated his warning to the jury to ignore Galardi's references to bribery of Las Vegas public officials.

"The testimony of Michael Galardi that basically was this, that he paid certain Las Vegas elected officials, was stricken and you were instructed to disregard that testimony," Miller said. "Today, the court repeats that instruction."

Miller asked that any of the jurors or alternates raise their hands if they felt they could not follow that instruction. No one raised a hand.

The focus of Friday's testimony was on Galardi's alleged 2001 and 2002 payments to San Diego city councilmen Ralph Inzunza, Michael Zucchet and particularly a man who died last year, former councilman Charles Lewis. Galardi said he and Malone tried to give Lewis $2,500 in cash in May 2001.

Lewis returned the money. Galardi said that came as a surprise because Lewis "had taken cash before," $500 during a visit to Las Vegas.

"We wanted to see if Mr. Lewis would keep the money," Galardi said of the $2,500. "If he did, we figured he'd be a player, he'd be on our side."

Galardi said Malone was an important part of the financial effort to bring San Diego politicians to his side of the "no touch" debate. Galardi was trying to get San Diego to overturn its ordinance that outlawed touching between a topless dancer and a customer, and Malone worked with him on the effort.

"Lance was the bag man," he said. "He always delivered the money."

At another point Galardi described a close personal relationship between himself and the former Clark County commissioner and one-time Metro Police officer.

"I'd see him every day," he said. "We worked out together, played racquetball, played golf, lifted weights, everything."

A May 2001 recorded conversation between Malone and Galardi brought in several Las Vegas officials. Malone told Galardi that Clark County Manager Thom Riley and "Erin," apparently a reference to former Clark County Commissioner Erin Kenny, were considering Malone for the position of director of the county Parks and Recreation Department.

Malone, in the phone conversation, told Galardi that he could continue lobbying San Diego officials if he were working for the county.

In a February 2002 recording of a telephone conversation, Malone described efforts by two Las Vegas candidates for office -- "Erin and Dario" -- who needed financial support from Galardi. Then-county commissioners Erin Kenny and Dario Herrera were both seeking other offices and the financial support they needed to run statewide campaigns.

Kenny has, like Galardi, pleaded guilty and is cooperating with federal prosecutors. Herrera, who in 2002 was chairman of the Clark County Commission, has maintained that he is innocent, and has another former colleague on the commission, Mary Kincaid-Chauncey.

Another recording of a telephone conversation launched a ripple of laughter from the press crowded into the San Diego courtroom. Malone, on the 2001 tape, explained to Galardi that he did not return a phone call from a San Diego Union-Tribune reporter seeking comment on Las Vegas contributions to San Diego politicians.

Since he had lost his re-election bid in 2000, Malone said he no longer had an obligation to return media calls.

"It's so nice not to have to call these (expletives) back," Malone said.

In a February 2002 tape, Galardi and Malone complained about the press and politics. Galardi noted the San Diego media's attention to his campaign contributions to local political races.

"The newspapers, why do they make such a big deal about it?" he asked Malone. "Like we're evil."