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Aug. 24, 2006
Copyright © Las Vegas Review-Journal


JANE ANN MORRISON: Some politicians find it incredible that judge finds Galardi credible

Michael Galardi, the human ATM machine for at least three Nevada politicians, one San Diego councilman and possibly others, is a credible witness. At least U.S. District Judge Larry Hicks thinks so.

People whom Galardi claims he bribed can't be real happy about the judge's comments Monday. Las Vegans who haven't been indicted and who have denied taking bribes from the former topless club owner -- and there are about 60 of them, including judges and attorneys -- see Galardi as a lying dog.

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At best, he's confused, some say privately. And it's likely some who received money from him considered it a campaign donation, and listed it as such, and that Galardi simply doesn't distinguish between a bribe and a campaign contribution.

Hicks called Galardi a credible witness when sentencing former Clark County Commissioners Mary Kincaid-Chauncey and Dario Herrera, and that can't lift Lance Malone's spirits. The former cop, county commissioner and promoter of strip clubs starts his trial in Las Vegas on Sept. 18. Malone's trial was separated from Herrera and Kincaid-Chauncey's because part of their unsuccessful defense is that Malone was taking bribe money from Galardi and pocketing it himself.

Malone already has been sentenced to three years in prison for his first conviction in San Diego.

As in the case of Kincaid-Chauncey, Malone's attorney fees are now paid by you, because he's considered indigent. (In the federal system, tax dollars pay attorney fees for about two-thirds of the defendants.) Malone joined those ranks Jan. 26, and Dominic Gentile, who represented him in San Diego, was appointed to represent him in Las Vegas, at far lower fees.

Before he became an indigent defendant, Malone and his wife of 11 years, Rosemary Palacios-Malone, divorced in April 2005, just days before the start of his corruption trial in San Diego.

At that trial, she accompanied him walking hand in hand, appearing like the loyal spouse, despite their fresh divorce. His business, the popular Subway at the Orleans Hotel, became her business.

Just guessing, however, that Rosemary won't be doing the hand-in-hand walk to court with Malone this time. If it is a sham divorce to protect assets, the couple wouldn't want to be quite so blatant this go-around.

Malone's defense is expected to include an attack on Galardi's credibility.

During the debate between prosecutors and defense attorneys over how much Galardi paid Kincaid-Chauncey and Herrera in bribes, Hicks said, "I don't feel Galardi was lying, but there was so much uncertainty about the actual amounts he paid."

Hicks said he had no doubts that Galardi paid both former commissioners more than the government proved ($19,000 to Kincaid-Chauncey and $60,000 to Herrera) and he had no doubts that the payoffs were bribes.

But part of Hicks' position is based on that old Russian proverb: "Doveryay, no proveryay."

Judge Hicks took the same approach with Galardi's testimony that President Reagan took with Soviet Union President Mikhail Gorbachev: "Trust, but verify." Wiretaps and what Hicks described as "impressive testimony" from Erin Kenny were used to verify Galardi's testimony.

Assistant U.S. Attorney Dan Schiess argued that, based on Galardi's testimony, Herrera took between $150,000 and $200,000 from Galardi and Kincaid-Chauncey pocketed as much as $85,000. But Hicks used the more conservative bribery numbers, sentencing Herrera to 50 months and Kincaid-Chauncey to 30 months.

Kenny, the corrupt county commissioner who pleaded guilty but has yet to be sentenced, said Galardi paid her about $60,000 and remembered amounts others paid her.

"There was some inherent reliability regarding her payments from Galardi," Hicks said.

Galardi is scheduled to be sentenced Nov. 20. After many postponements, that probably will be the date when we see how much of a break you get for being the first to plead out and testify against others.

Kenny's sentencing is expected after she testifies in the Malone case and after she testifies against developer Don Davidson, who is scheduled for trial Jan. 22 on an accusation he paid her $200,000 in bribes.

Once Galardi and Kenny are sentenced, it's a sign that the government no longer needs them as witnesses and that the FBI's political corruption probe based on their testimony is over.

Anyone else bribed by Galardi or who bribed Kenny but didn't get indicted can then sleep easier.

Jane Ann Morrison's column appears Monday, Thursday and Saturday. E-mail her at Jane@reviewjournal.com or call 383-0275.

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