"I knew that the day would come when I'd have to tell my young sons that their father was going to have to leave them for awhile.''
LANCE MALONE
IN A LETTER TO U.S. DISTRICT JUDGE
When former Clark County Commissioner Lance Malone learned in 2003 that federal agents had spent months eavesdropping on his telephone conversations, he knew he was in trouble.
"From the time that it became obvious that the government had wire-tapped my telephone for almost two years, I knew that there would be problems and that my future was no longer bright, my reputation no longer sparkling," Malone wrote in a 15-page letter submitted to U.S. District Judge Larry Hicks.
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Malone, who served as strip club owner Michael Galardi's bagman and delivered cash to his former colleagues on the county board, is to be sentenced by Hicks after a hearing that begins this morning.
"I knew that the day would come when I'd have to tell my young sons that their father was going to have to leave them for awhile," Malone wrote.
Malone admits paying former Commissioners Dario Herrera, Mary Kincaid-Chauncey and Erin Kenny, but he says they should have reported the money and abstained from certain votes.
"I told myself that it was their duty to announce any conflict of interest or abstain from a vote involving Michael Galardi's interests," Malone said in the statement.
Malone recalled paying Kenny $3,000 on six occasions. In addition, he gave her a $10,000 check for her campaign for lieutenant governor and another cash payment of $10,000.
He paid Herrera $3,000 on seven occasions and once delivered $9,000 after Herrera requested "three months in advance," Malone's statement says.
The government alleges Galardi and Malone paid Herrera $10,000 a month. When Herrera was in the midst of a divorce and asked for an advance, Malone delivered $30,0000 to him, prosecutors allege.
Herrera and Kenny justified the payments by claiming they were "consultants" working for Galardi, Malone said.
"I kept telling myself that money paid to Erin Kenny and Dario Herrera was being paid for their 'outside consulting' and not as bribes, and that it was their duty, not mine, to disclose it," Malone said. "I disgraced myself and my family by doing that and I'm sorry for it."
Galardi and the former commissioners were indicted in 2003. Galardi and Kenny pleaded guilty and cooperated with the government. Herrera and Kincaid-Chauncey were convicted of political corruption charges in May.
Malone signed a plea deal just days before he was to go to trial in September.
In his letter, Malone explained that he had refused to sign a plea agreement that accused him of being a corrupt politician during his tenure on the commission from 1996 through 2000. It was only after prosecutors dropped the language from the agreement that Malone signed.
"I cannot live with being viewed or punished for what I haven't done, or to have my sons and family be embarrassed for conduct that I didn't engage in," Malone said. "It is because of them and because the allegation that I was corrupt as a County Commissioner is not true that I did not plead guilty sooner to the Nevada charges."
Malone was convicted in 2005 of political corruption charges in a parallel case in San Diego. He was sentenced to 36 months in prison. He said since his arrest in 2003, he has tried to spend time with his sons, ages 6 and 8, to teach them right from wrong.
"I've tried to use the last almost four years to grow closer to them and to teach them what I know about morality, strength of character and right from wrong," Malone said. "That might sound odd coming from me, but part of what I've tried to teach them was driven and enlightened by my own weakness and mistakes in life."
Galardi hired Malone as a lobbyist soon after Malone was defeated in the September 2000 primary election. Malone, a former cop who served one term on the commission, said his loss to newcomer Chip Maxfield left him "stunned and afraid. I went from accolades to rejection overnight."
At the time, Galardi faced the challenge of opening up new strip clubs while battling an organized opposition to the adult entertainment industry. Malone said he faced a different challenge: He had a newborn child and no job.
"I felt that if I could make the kind of money that Michael Galardi was offering to pay me, I could perform a valuable service in exchange for it because of my experience as a County Commissioner," Malone wrote. "So I took the job."
In spring 2001, Malone, as Galardi's new employee, suggested to Galardi that he invite Herrera to join them for a round of golf. But, Malone wrote in his letter, he had no intention of recruiting Herrera to become part of a corrupt bribery scheme.
"Galardi and I were just exploring what our future relationship could be and I was trying to show him that I could arrange these types of social/business meetings and provide opportunities to get to know the elected officials better," Malone said.
Malone pleaded guilty to only one count related to serving as a middleman between Galardi and the elected officials after he left office. During the sentencing hearing, prosecutors are expected to attempt to show that Malone was corrupt while in office. If Hicks is convinced, he can enhance Malone's sentence.
The Bureau of Probation and Parole has recommended Malone receive a 41-month sentence, but prosecutors seek a more severe sentence.
One of the most significant issues will be whether the government can prove that Triple Five Development co-owner Eskander Ghermezian promised Malone and Las Vegas businessman Donald Davidson $250,000 for Malone to vote in favor of the controversial Spring Valley casino.
Malone startled observers during a January 2000 commission meeting when he reneged on a prior commitment to his constituents and Station Casinos. He had told them he would vote against Ghermezian's Spring Valley casino.
Malone and Davidson deny they received money in exchange for Malone's vote.
Malone said Triple Five representatives convinced him the project would benefit the Las Vegas Valley. And, he said, Kenny bullied him to support the casino, which was to be built in her district.
"They were persuasive and Commissioner Erin Kenny asked for my support on it," Malone said in his statement to Hicks. "She went so far as to imply that if I didn't support it, she wouldn't support things that I wanted in my district."
Davidson, who is facing an indictment of his own, says that there was no bribery connected to the Spring Valley casino vote.
"Not a single County Commissioner was offered any money or anything else of value in exchange for support of this project," Davidson wrote in a declaration to be used at Malone's sentencing. "No promises were made for any future benefits for the Commissioners either for their vote or if the project passed the County Commission with approval."
But during the trial of Herrera and Kincaid-Chauncey, Kenny told jurors that she accepted bribes for years from Triple Five. Triple Five officials have suggested Kenny's allegations were the fictional product of someone trying to curry favors with authorities with influence over her future.
Malone said although he did not take money from Triple Five, he took the company up on an offer to provide security for its Las Vegas properties.
He and Davidson planned to start the business together, and Ghermezian was willing to provide the financial backing, Malone and Davidson said.
"Neither Eskander Ghermezian nor Donald Davidson ever gave me or promised me anything while I was in office and had matters involving them coming before me," Malone wrote. "The funding for the security company never occurred because I took too long and the opportunity passed me by."
Triple Five issued a statement saying the company has been "victimized" by media reports regarding the Spring Valley casino.
"This is in realty a case of being victimized purely as an innocent bystander," the statement says. "The news articles do not include the entire record of events. Triple Five and its principals have engaged in no wrongdoing."
POLITICAL CORRUPTION Galardi Investigation News Archive