Las Vegas Mayor Oscar Goodman said Wednesday that he wants the city and Crazy Horse Too Gentleman's Club to compromise on a penalty for the business related to club officials' recent guilty pleas to federal charges.

The City Council scheduled a disciplinary hearing on the business' tavern license for Sept. 6.

The council could decide to revoke or suspend the club's license to serve alcohol and fine the club up to $2.192 million.

Goodman disclosed he had represented club owner Rick Rizzolo as a criminal attorney 21 years ago and said he still considers him a friend.

"I've stated publicly that I believe that he has done good charity work," the mayor said.

But, Goodman added, he thought he could be objective, and he voted with the council to schedule the hearing date.

Anthony Sgro, the attorney representing Rizzolo and the club, said he has met with council members to address false impressions presented in the criminal complaint filed by the city.

Deputy City Attorney Bill Henry also attended meetings between council members and club representatives, Sgro said.

Under the plea agreement with the federal government, owners of the Crazy Horse Too have agreed to pay fines totaling $17 million.

Sgro questioned the need for the city to impose additional fines.

"With the federal government's punishment, our concern is that the city will want their own pound of flesh," he said after the meeting.

Councilman Steve Wolfson asked whether the city would be interfering with federal prosecutors by taking its own action.

But Henry told the council that he had talked to a federal prosecutor involved in the case, who told him that investigators expected that the city would issue fines.

"They contemplated it. They were well-aware of Mr. Galardi," Henry said, referring to a $1,017,000 fine handed down by the City Council in 2004 to Michael Galardi. Galardi, who co-owned Cheetah's topless club with his father, Jack Galardi, pleaded guilty to federal corruption charges in San Diego.

On June 1, Rizzolo and 16 workers pleaded guilty to charges for actions between 2000 and 2005. Several of the charges were related to tax fraud.

The Power Co., which holds the tavern license, pleaded guilty to one count of "conspiracy to participate in an enterprise engaged in racketeering activity" between 2000 and 2005.

The city allows fines up to $1,000 per day for a licensee business that "has been or is being conducted in an unlawful, illegal or impermissible manner."

In the plea, according to the city's complaint, The Power Co. admitted that Crazy Horse Too "sought to extort payment from patrons through explicit or implicit threats of violence, or through actual use of force."

Steve Miller, a critic of Goodman and his ties to Rizzolo, has called for a hearing into the club's tavern license.

On Monday, Miller filed a complaint against Goodman with the Nevada Commission on Ethics and said the mayor should not vote on matters related to Rizzolo and the club.