Thursday, September 04, 2003
Copyright © Las Vegas Review-Journal

POLITICAL CORRUPTION INVESTIGATION: Malone enters innocent pleas

Ex-commissioner accused of offering bribes to influence San Diego strip club law

Members of the media follow former Clark County Commissioner Lance Malone as he arrives Wednesday at the Edward J. Schwartz Federal Building in San Diego. Photo by Amy Beth Bennett.

SAN DIEGO -- As former Clark County Commissioner Lance Malone awaited his arraignment in federal court Wednesday, an elderly man tapped him on the shoulder.

The former Las Vegas police officer smiled when the man said he didn't look like the sort to commit a crime.

"We agree," Malone said, nodding his head.

Moments later, Malone pleaded innocent to all charges contained in an Aug. 28 federal indictment that alleges he and others bribed politicians in an attempt to rescind the city's ban on physical contact between strippers and patrons.

The 41-year-old lobbyist for strip club owner Michael Galardi was released on $250,000 bond.

U.S. Magistrate Nita Stormes agreed to Malone's request to use his Las Vegas home and another property as collateral in lieu of a cash bond. He is scheduled to appear in court Oct. 23 for a motion hearing.

Dressed in a light gray suit and red tie, Malone turned himself in at San Diego's FBI headquarters shortly before 8 a.m. Wednesday.

Attorneys Dominic Gentile and Jerry DePalma accompanied him to his 10:30 a.m. arraignment in downtown San Diego.

As he arrived at the courthouse, Malone ignored reporters and stopped only to make sure a cameraman pursuing him was not injured when he fell over a planter box in front of the courthouse doors.

Inside the courtroom, a more light-hearted Malone made small talk with Las Vegas reporters prior to his arraignment.

Malone had spent Tuesday afternoon with prosecutors before turning himself in Wednesday.

Of the seven defendants named in the public corruption indictment, he was the last to make his initial court appearance.

Galardi pleaded innocent Friday to charges that include wire fraud, conspiracy and interstate travel in aid of racketeering. He is free on $250,000 bond.

San Diego Councilmen Ralph Inzunza, Charles Lewis and Michael Zucchet also pleaded innocent Friday to charges that include wire fraud and conspiracy. Lewis aide David Cowan on that same day pleaded innocent to making a false statement to a government agency. All are free on $25,000 bond.

John D'Intino, who managed a Galardi-owned strip club in San Diego, pleaded guilty Tuesday to one count of conspiracy to commit wire fraud and one count of conspiracy to possess unregistered firearms and firearms with obliterated serial numbers.

D'Intino, who will remain in custody pending sentencing in January, is expected to testify on behalf of the prosecution at the trials of his co-defendants.

Douglas McNabb, a Houston defense attorney who specializes in white-collar federal cases, reviewed the plea agreement for the Review-Journal and said it contains a promise by prosecutors to recommend a total prison term of about five years for D'Intino.

In his plea agreement, D'Intino says he, Galardi and Malone paid a San Diego police officer "to obtain advance information of police department vice raids at Cheetah's."

He also says he, Galardi and Malone paid the three San Diego councilmen in an attempt to reverse a city law that prohibits touching between strippers and customers.

The councilmen have said they did nothing wrong and any money they accepted involved legitimate campaign contributions.

The no-touch law remains on the books.

A proposal to revisit laws regulating adult businesses was introduced by a San Diego City Council committee on April 30.

But no vote was taken prior to May 14, when the FBI raided Galardi strip clubs in Las Vegas and San Diego and the offices of the three City Council members.