Las Vegas- Michael Galardi testified Tuesday that he was so fearful about going to prison after FBI agents raided his strip clubs in May 2003, he began drinking heavily and taking the prescription drug Zoloft.
The combination affected Galardi to the point that federal agents had to cut short an interrogation session because he was acting “loopy,” he said.
“I was totally scared to death,” Galardi said under questioning from Assistant U.S. Attorney Daniel Schiess. “The stress has been unbearable.”
The defense attorneys’ case has centered on Galardi’s truthfulness and his memory of events between 2000 and 2003, when the federal government alleges former Clark County Commissioners Dario Herrera and Mary Kincaid-Chauncey pocketed cash bribes from Galardi.
Galardi’s admission that he drank and took antidepressants raised further questions about information the former strip club owner provided to FBI agents in 2003 before he signed a plea agreement that defense attorneys have called a “great deal.”
Galardi concluded his testimony Tuesday in the trial of Kincaid-Chauncey and Herrera.
The two former commissioners with their former colleagues Erin Kenny and Lance Malone were indicted in 2003 and accused of accepting bribes from Galardi in exchange for voting favorably on matters concerning his strip clubs, Jaguars and Leopard Lounge. Galardi was indicted on charges of bribing the commissioners.
Kenny and Galardi agreed to plead guilty and cooperate with prosecutors for leniency at sentencing.
Malone, who Galardi and prosecutors allege delivered Galardi’s payments to elected officials, is scheduled to go to trial in August.
Galardi told defense attorneys Tuesday that all of his testimony has been factual. If he lies, his plea agreement, which allows for no more than five years in prison, is void, he said. Kenny’s plea deal includes the same language regarding her testimony.
But one of the prosecution’s two star witnesses apparently was not truthful on the stand.
Last week, defense attorney Jerry Bernstein asked Kenny whether she had a “sexual or romantic relationship” with Galardi.
“Absolutely not,” she answered.
On Monday, Galardi testified that Kenny performed oral sex on him on six different occasions.
Kenny testified that a bout with vertigo has made her memory of past years foggy. Galardi’s credibility has been repeatedly disparaged by defense attorneys Jerry Bernstein and Richard Wright. They have said Galardi is a liar.
The defense challenged Galardi’s Monday assertion that he gave District Attorney David Roger a $20,000 check during his campaign for office. When Roger declined to accept the check, Galardi said he gave his attorney, Pete Christiansen, $20,000 cash to deliver to Roger.
Reached Monday night, Roger called Galardi’s testimony “false” but declined to elaborate.
In court Tuesday, prosecutors played a June 2002 telephone conversation between Malone and Galardi. Galardi explained to Malone that Roger did not want to accept a contribution from the strip club industry.
“That’s why I had to give it to him another way, through Pete,” Galardi told Malone.
Galardi testified Monday that at a UNLV basketball game Roger had thanked him “for taking care of him.”
On Tuesday, Galardi continued to name other officials he claims to have paid.
He said he delivered a $5,000 cash bribe to Clark County Assessor Mark Schofield with hopes of having his property taxes reduced. Galardi said he does not think he received a break on his taxes.
Schofield told The Associated Press that he received a $5,000 campaign contribution from Galardi in 2002 and properly reported it. Schofield called Galardi’s claims “blatantly false.”
Galardi testified that he gave a $10,000 campaign contribution to Lynette Boggs McDonald when she was a member of the Las Vegas City Council. In 2003, according to defense attorneys, Galardi told FBI agents he could capture Boggs McDonald accepting a bribe if he wore a body wire.
In a statement issued Tuesday, Boggs McDonald said the only money she received from Galardi was a $1,000 check during her 2002 congressional race. She said she reported the contribution on her federal campaign forms.
“If Mr. Galardi has in fact stated or insinuated that I was paid in any manner in exchange for favoritism, influence or votes he is a flat-out delusional, pathological liar,” the statement said.
Galardi said he initially paid off elected officials so they would protect his strip club empire from harmful legislation. He feared that if he stopped payments, politicians might retaliate by introducing stricter regulations on the clubs, he said.
Former Las Vegas City Councilman Michael Mack was a perfect example, Galardi said. Mack acted like he owned Cheetah’s, Galardi’s strip club in Las Vegas and would command club managers to “‘bring me your best whores,'” Galardi testified.
Mack told Galardi he would push for an ordinance that required dancers to perform six feet away from patrons if Galardi stopped paying him or stopped providing him with women who would perform sex acts on him.
“We got tired of being strong-armed by Mr. Mack, so we decided it was time to play dirty back,” Galardi testified.
Managers at Cheetah’s captured security footage of Mack receiving oral sex from a stripper. Galardi saved the video and said he planned to release it to the media if Mack introduced his ordinance.
A video labeled “videotape of Mike Mack” was listed among items seized by FBI agents in their May 2003 raid of the strip club.
Mack did not return calls for comment Tuesday.
Galardi said no such video exists of Herrera, who Galardi has testified received monthly cash payments and comped lap dances and oral sex at Cheetah’s.
Galardi testified that FBI agents also took advantage of the strip club owner. Galardi said he paid for golf outings, vacations and sexual favors for FBI Special Agent Bob Pellet. Galardi said the agents, not all of whom were named, also borrowed his luxury cars and attended parties at his home.
The agents participated in a Cheetah’s golf tournament where strippers served as caddies. Galardi testified that he paid one “caddie” $500 to have sex with Pellet.
“Yes, I paid a girl to have sex with Bob Pellet,” Galardi said.
FBI officials said they are investigating the allegations.
Galardi told jurors Tuesday that in August 2003, he was taken into protective custody because he feared for his life after telling FBI agents of illegal acts committed by politicians, law enforcement agents and prominent businessmen.
He testified he was concerned because Malone had taken money from three hotel operators who own “one-half to one-third” of the hotel-casinos in the Las Vegas Valley.
“They were pretty powerful people,” said Galardi, who never disclosed the casino owners.
Following Galardi’s testimony Tuesday, Kincaid-Chauncey’s daughter, Mary Jo Ruppert, took the stand to discuss a $4,000 contribution Galardi made toward the cost of her son attending an Olympic ski school.
In the indictment, the federal government labeled the contribution a cash bribe. But Ruppert said she asked several prominent Las Vegas businessmen for contributions.
Kincaid-Chauncey helped Ruppert make a list of possible donors.
“I asked if she knew anyone who would be interested in donating funds,” Ruppert said.
She presented her son’s resume to Malone when Malone visited Kincaid-Chauncey’s flower shop in 2002.
“He said, ‘Would $5,000 help?’ and I said, ‘Yeah, a lot,'” she said. “He said, ‘Let me talk to my boss.'”
Kincaid-Chauncey accompanied her daughter to Jaguars on June 26, 2002, to pick up the money.
Ruppert said she was surprised when Malone handed her an envelope of cash. She said developers Randy Black and Russ Dorn also made contributions but paid with checks. On the way to the bank that day, Ruppert said she counted the money and discovered Malone had given her $4,000 only.
Ruppert said that in 2003, a man called her Wyoming home and identified himself as a German sportswriter who was working on a story about up and coming skiers. He said he wanted to interview her son, Russell Ruppert.
But when the man arrived at the house, he said he was an FBI agent. The agent insisted he had a tape of Kincaid-Chauncey and Malone talking after Ruppert left Jaguars.
In his report, the agent wrote that Ruppert acknowledged that Malone called her mother after they left the club, a fact Ruppert denied before a grand jury and again on Tuesday.
“The FBI agent claimed he knew of such a call, and he wanted you to admit it,” Wright said to Ruppert.
Ruppert said that was correct.
“To this day, I haven’t heard the phone conversation,” Ruppert replied.
