Saturday, June 07, 2003
Copyright © Las Vegas Review-Journal

Galardi concerns ignored

Police knew FBI was interested in family in 2001

Erin Kenny target of investigation Mary Kincaid-Chauncey target of investigation Dario Herrera has not said if he is a target Lance Malone focus of FBI investigation Michael McDonald says he is not a target of investigation

Three times Las Vegas police detectives went to the Clark County Commission with concerns while the Galardi family was trying to open Jaguars.

Three times commissioners brushed these concerns aside, ultimately approving all the permits required to open the massive strip club that was raided May 14 by FBI agents probing political corruption.

The most recent of the three occasions occurred in September 2001, when police sought to stall the issuance of land use permits for Jaguars.

At that meeting, Capt. Daniel Patrick Barry told commissioners the Galardi family had deceived county officials by insisting Jack Galardi had no interest in Jaguars and would not benefit from the strip club.

Commissioners Dario Herrera, Mary Kincaid-Chauncey and Erin Kenny all told Barry to stick to the specific agenda item -- a use permit to allow the consumption of alcohol at Jaguars. Commissioners then approved the use permit.

In an interview Monday, Barry said he knew at the time of that meeting that the FBI was looking at Mike and Jack Galardi. He said he wanted to get the findings of a police probe on the record before the commission approved permits for Jaguars.

"We knew from the outset two years ago that the FBI was looking at them," Barry said.

Barry said he got the "cold shoulder" from several commissioners, whom he declined to name, during the September 2001 meeting.

"I wanted to get the facts on the record because there were a lot of things going on and I wanted to bring it to their attention," Barry said. "I didn't feel that they realized the severity of it, and it appeared that they weren't that concerned with what was being presented."

Federal officials have not indicated the extent to which they are interested in the meetings where commissioners rebuffed police.

However, FBI agents on May 14 interviewed Ardel Jorgensen, director of the county Business License department, about a meeting in which she unsuccessfully urged commissioners to let police travel to Atlanta to investigate Jack Galardi.

County Counsel Mary-Anne Miller said in May that the two FBI agents who interviewed Jorgensen repeatedly mentioned former County Commissioner Lance Malone, who went to work for the Galardis after he was defeated for re-election in 2000.

She said their questions focused on "whether any representatives of Galardi, including Lance, had ever given any favors to expedite any applications regarding Jaguars."

The FBI on May 14 executed search warrants at Jaguars and two other Galardi-owned strip clubs in Las Vegas and San Diego.

A search warrant indicated agents were searching for any evidence of hidden ownership in the Las Vegas clubs.

The warrant also said agents were searching for records that included evidence of gifts or payments to Herrera and his wife, Emily; Kenny and her husband, John; Kincaid-Chauncey and her husband, Robert; and Las Vegas City Councilman Michael McDonald.

Attorneys for Kenny, Kincaid-Chauncey and Mike Galardi have said the FBI informed their clients they are targets of the investigation. McDonald has said he is not a target.

Herrera, whose home was searched by the FBI on May 29, has declined to say whether he is a target.

Malone also has been identified as a focus of the investigation.

Jaguars opened on Procyon Street in spring 2002 with a capacity of 900 guests and a price tag of $15 million.

An attorney for Mike Galardi said his client owns Jaguars, which is located in unincorporated Clark County. Mike and his father, Jack, own the Las Vegas Cheetah's, which is located inside the city of Las Vegas, the attorney said.

During the permitting process for Jaguars, police on at least three occasions registered their concerns about the Galardis.

In July 1999, police sought permission to travel to Atlanta to investigate Jack Galardi. Commissioners denied the request.

In September 1999, police told commissioners Jack Galardi had links to organized crime and Mike Galardi had "established a pattern of unlawful activity" at his other strip clubs. Then-commissioner Malone accused police of spreading "innuendos" about the Galardi family and said the allegations "probably don't need to be brought up."

In September 2001, commissioners interrupted Barry and told him to limit his remarks to whether the land was suitable for a strip club.

"I appreciate you coming here today, captain," Kenny told Barry. "I wish we'd known what your concerns were earlier. We're constrained on what we can consider before us."

Commissioner Bruce Woodbury said this week it is unusual to discuss an applicant's suitability for ownership of a club when the matter at hand deals with land uses.

But, he added, in hindsight the commission could have held the agenda item to learn more about the Police Department's concerns.

"You can't say we don't have discretion on use permits," said Woodbury, who joined Kenny, Kincaid-Chauncey, Myrna Williams and Yvonne Atkinson Gates in approving the land use permit. "We do have some discretion."

Woodbury said that during his two decades on the board, it has been unusual for board members to overrule requests made by police.

"I can't remember specific situations, but there have been occasions over the years when the commission voted against the recommendation of Metro," Woodbury said. "But it's not too often and especially if they have significant concerns."

Jack and Mike Galardi submitted an application for Gold Club, later named Jaguars, in March 1999. Police then commenced a "suitability" investigation into Jack Galardi, which is routine for privileged license applicants.

In July 1999, Las Vegas police detectives requested $11,000 to travel to Georgia to determine whether Jack Galardi had a close relationship with Atlanta Gold Club owner Steve Kaplan, a reputed organized crime associate. Commissioners denied the request.

Attorney Peter S. Christiansen, who represented Jack Galardi during the commission hearings, said this week that Las Vegas police never proved any relationship between his client and Kaplan.

"For two years, Jack Galardi was painted to be part of or be in bed with Kaplan and the Gold Club of Atlanta," Christiansen said Thursday. "Since that time, Mr. Kaplan has had a trial. Jack Galardi was never named as a witness; he had zero involvement. None."

Jack Galardi resigned as a shareholder in Jaguars soon after the July 1999 commission meeting, leaving the business to his son.

At the September 1999 board meeting, Las Vegas police Sgt. Vincent Cannito expressed concerns about Jack Galardi's involvement in Jaguars.

"Since we've begun our investigation, we have confirmed Jack Galardi is a close associate of organized crime," Cannito said. "This is not innuendo; this has been documented through business contacts and personal relationships with various organized crime figures."

Cannito, who has since been promoted to lieutenant, also expressed concerns about Mike Galardi.

"Mike Galardi has established a pattern of unlawful activity; not sporadic, mind you, but clustered and consistent," Cannito said. "He does it in other states, he does it in the city and if you grant him the license, he'll do it in the county."

At that time, Christiansen expressed disbelief at the police department's allegations.

"It is beyond belief that (police) can come before you in a public forum and absolutely besmirch the good name of the Galardis," Christiansen told commissioners. "I guess if you're Italian and you happen to own a topless club, you're in the mafia. That implication is something you folks should consider."

During that same meeting, Malone criticized police for spreading "innuendos" about the Galardi family.

Two years later, on Sept. 19, 2001, Barry visited commissioners in an attempt to stall the issuance of land use permits for Jaguars.

During that meeting, Barry told commissioners that Jack Galardi had not distanced himself from the project.

Barry said Jack Galardi did indeed pull out of the company that owned Jaguars, but he owned the four acres on Procyon Street where the topless cabaret is located. Mike Galardi leased the land from his father, Barry said.

"I believe the Galardis, both Jack and Michael, have misled the Planning Commission as Mr. Galardi maintains a personal and financial interest and influence in Jaguars adult cabaret," Barry told commissioners. "I felt an obligation to bring my concerns to your attention."

Barry's testimony was interrupted by Herrera, who asked the organized crime investigator to stick to the issue -- a use permit to allow the consumption of alcohol at Jaguars. Kincaid-Chauncey and Kenny also told Barry the commission was only interested in the suitability of the land for a strip club.

"There would have to be something substantial brought to us that, you know, that there are churches on all four sides (of the Jaguars site) or four elementary schools on all four sides," Kenny said during the meeting. "Something that would be so compelling that we would say we just couldn't put this use here."

Kenny made the motion to approve the use permit. Joining her in approving the motion was Woodbury, Herrera and Kincaid-Chauncey.

By the next meeting, Sept. 25, Jack Galardi had sold his property to Mike Galardi.