Wednesday, December 17, 2003
Copyright © Las Vegas Review-Journal

Galardi liquor license revoked

Commissioners ban Jaguars from selling alcohol

Club manager Tom Waddell speaks outside Jaguars, which lost its liquor license. Photo by Craig L. Moran. Deputy District Attorney Kathleen Janssen urges District Judge Jennifer Togliatti not to reverse the revocation of the liquor license for Jaguars during an emergency hearing Tuesday. Seated at right are Jack Galardi's attorneys, Dominic Gentile and Suzanne Coe. Photo by K.M. Cannon.

County commissioners banned Jaguars from serving alcohol Tuesday, marking the first significant regulatory action stemming from the political corruption case involving the topless bar's former owner, Michael Galardi.

Jack Galardi, who purchased the strip club from his son Friday, immediately asked a judge to block enforcement of the commission's decision. In a hastily scheduled hearing late Tuesday afternoon, District Judge Jennifer Togliatti denied the request.

The commission vote prompted strip club managers to shut down the business about 4 p.m. while they cleared out the booze and replenished the bar with non-alcoholic drinks. The club reopened about 9 p.m. Tuesday.

"We just never thought we would be spending upwards of $15 million for a juice bar," Jaguars Manager Tom Waddell said.

Commissioners revoked Michael Galardi's license after deeming him "unsuitable" to possess a privileged license.

He has pleaded guilty to federal corruption charges in Las Vegas and San Diego. In both cities, he admitted he paid bribes to government officials to influence their votes. He is awaiting sentencing.

In a deal finalized late Friday, Michael Galardi sold Jaguars to his father, Jack Galardi. But the younger Galardi is the only name listed on Jaguars' liquor license. His father would have to obtain a liquor license before he could serve alcohol. The same would be true of anyone who contracted to lease the club from him.

Attorney Dominic Gentile, who represents Jack Galardi, cautioned commissioners that their decision could result in hundreds of employees losing their jobs during the holiday season. Managers of the club said 80 percent of Jaguars' staff no longer would be needed without a liquor license.

"Six people today voted to put 500 people out of work nine days before Christmas," Jaguars Operations Manager Mark Rodney said.

The claim was quickly dismissed by Deputy District Attorney Mary Anne Miller.

"Adult entertainment can go on; the cocktail waitresses can serve juice," Miller said.

Gentile filed legal motions in District Court throughout the day in an attempt to stop the county from revoking liquor licenses for Jaguars and the Leopard Lounge, a topless club Jack Galardi purchased from his son last month.

The complaint claimed Jack Galardi's civil rights were violated because his interests in Leopard Lounge were being taken without due process. Jack Galardi had applied for a liquor license to operate Leopard Lounge but never heard from the county before Tuesday's revocation hearing, Gentile said.

Board members agreed to postpone their decision on the Leopard Lounge licenses until 9 a.m. today, but Gentile's last-minute action didn't go over well with commissioners.

"The political wranglings and maneuvers that took place this afternoon is most inappropriate and doesn't sit well with me," Commissioner Yvonne Atkinson Gates said.

A hearing was scheduled before Togliatti less than two hours after the board's decision to revoke Jaguars' liquor license. As county attorneys prepared to respond to the due process argument raised in the initial complaint, Gentile filed another motion requesting that the board's decision to revoke Jaguars' license be reversed.

Togliatti ordered commissioners to allow Gentile to speak during today's meeting so that he can explain his client's situation and why he believes the licenses should not be revoked.

"I will do my best to change the minds of people who have already made them up," Gentile said after the hour-long court proceeding. "They've taken an unreasonable position. Jack Galardi and his interests were not going to be taken into consideration."

The county initiated the revocation process on Michael Galardi's two strip clubs after learning last month that Galardi had pleaded guilty to federal racketeering charges. Galardi admitted paying between $200,000 and $400,000 to "certain public officials" in Clark County in exchange for votes that favored his clubs and hindered competing businesses.

Others charged in the federal probe include Commissioner Mary Kincaid-Chauncey and former commissioners Erin Kenny, Lance Malone and Dario Herrera. Kenny has pleaded guilty. The others are awaiting trial.

Kincaid-Chauncey abstained from Tuesday's vote.

Under the conditions of his plea agreement, Michael Galardi must divest himself of his businesses.

Miller said the county has the right to revoke Michael Galardi's liquor licenses because he has been deemed "unsuitable" to possess the privileged license.

If Michael Galardi's licenses were considered in good standing with the county, a new owner could have been granted a temporary license to keep alcohol flowing. A temporary license is issued while a police background check is completed on the new owner.

Laws related to the revocation of adult cabaret licenses are more strict. The county cannot take that license away from Michael Galardi until the conclusion of his criminal case.

In trying to convince commissioners and Togliatti that Michael Galardi no longer has any interest in the strip clubs, Gentile made his disdain for the troubled strip club mogul apparent.

"You will never hear anything come out of this mouth that is intended to benefit in any way Michael Galardi," Gentile said. "If I find out he has interest in this, you won't see me around anymore."

Gentile, who represents Malone in the criminal case, said Jack Galardi and his son are not on friendly terms.

Review-Journal writer Brian Haynes contributed to this report.