Las Vegas- Former strip club owner Michael Galardi rattled off a list of public officials Monday to whom he said he made cash payments and confirmed that he had several sexual encounters with former Clark County Commissioner Erin Kenny [pictured].
Galardi stunned the courtroom when he testified that Kenny performed oral sex on him about six times during the time she served on the County Commission and took cash bribes to lobby for legislation beneficial to his topless club empire.
“Oh, for heaven’s sake,” a woman in the federal courtroom audience muttered after Galardi’s admission.
But that was not the only bombshell Galardi dropped during his third day on the witness stand in the political corruption trial of former county commissioners Mary Kincaid-Chauncey and Dario Herrera.
Galardi testified he gave District Attorney David Roger $20,000 cash, he paid then-county business license director Ardel Jorgenson $20,000 cash and that Clark County Manager Thom Reilly accepted a $5,000 cash bribe.
“It’s disturbing and ridiculous,” Reilly said Monday. “I’ve never met Galardi.”
Roger, reached Monday evening, called Galardi’s comments “false,” but said he did not want to comment further because he could be called as a witness in the case. Jorgenson could not be reached for comment.
In 2003, Kincaid-Chauncey, Herrera, Kenny and former commissioner Lance Malone — who eventually became Galardi’s right-hand man — were indicted on charges they accepted cash bribes from Galardi in exchange for favorable votes on Galardi-related matters.
The former commissioners were also charged with depriving the public of honest services after they failed to disclose their relationship with Galardi before voting on issues related to his two strip clubs, Jaguars and Leopard Lounge.
Galardi was charged with bribing the public officials.
He and Kenny struck plea bargains with the federal government, and in exchange for leniency, pleaded guilty to reduced charges and are testifying on behalf of the government.
Malone goes to trial in August.
Defense attorney Jerry Bernstein, who represents Herrera, wrapped up his cross-examination of Galardi by playing for jurors an intercepted telephone conversation between Galardi and then-Las Vegas City Councilman Michael McDonald. During the September 3, 2001 conversation, McDonald told Galardi that Herrera was spotted with an unidentified investigator.
McDonald told Galardi that Herrera and the detective were overheard discussing Galardi and Malone. Galardi did not seem concerned by McDonald’s comments: “I don’t do nothing illegal with the guy,” Galardi said.
That comment contradicted testimony he gave last week and again on Monday regarding payments to Herrera. Galardi testified he paid Herrera either $5,000 or $10,000 a month.
Bernstein and Richard Wright, Kincaid-Chauncey’s attorney, questioned Galardi’s credibility primarily because statements he made to FBI agents in 2003 conflicted with his testimony on the stand. Galardi also had trouble recalling what he said during separate interviews with his attorneys, FBI agents and prosecutors.
Galardi said he was so rattled at the time, he doesn’t remember what statements he made.
“I was scared to death,” he said.
The defense asked Galardi about each payment he claimed to have delivered to public officials, attempting to convince the jury Galardi was lying about those payments just as he is lying about bribing their clients.
According to Galardi’s testimony, he used cash or women from his strip clubs to get what he wanted from elected or public officials.
In 2002, Malone and Galardi met Jorgensen for lunch and handed her a Crown Royal bag stuffed with $20,000 cash. Galardi said Jorgensen was preparing to retire and he wanted to thank her for her assistance with licenses critical to the opening of Jaguars.
“She never asked for us to pay her; I didn’t consider that a bribe, no,” Galardi said. But when Bernstein pressed him further on the incident, Galardi conceded that “it was not a legal payment, no.”
Galardi testified that he signed a $20,000 check for Roger’s district attorney race, but Roger did not want to take money from a strip club owner. He said his long-time lawyer, Pete Christiansen, suggested that the contribution be paid in cash so the money could not be traced.
Malone delivered $5,000 cash to Reilly for protecting Jaguars from potential snags in the bureaucratic process, Galardi said. He said he did not see the delivery of the money but believed Malone had delivered it because Reilly “kept helping us out.”
In 2002, when Clark County Commissioner Yvonne Atkinson Gates introduced an ordinance tightening strip club regulations, Galardi paid attorney Jay Brown to pull her proposal. On Monday, Galardi said he was prepared to pay Brown an additional $50,000 if he was successful.
Galardi testified that he offered to pay Atkinson Gates $100,000 if she backed off her ordinance. Galardi said that while taking a tour of Jaguars, Atkinson Gates commented to Malone that “$100,000 would make any problems go away.”
Atkinson Gates, who on Monday received a subpoena to testify on behalf of the defense, on Monday flatly denied making such a comment.
During one of Galardi’s first meetings with the federal government in 2003, he said he recognized Assistant U.S. Attorney Eric Johnson. On Monday, he repeated claims that Johnson had received lap dances in his Las Vegas club, Cheetah’s. Although the Justice Department investigated the claims and found no wrongdoing, Johnson was removed from the case.
Galardi testified that he also had an “in” with the Las Vegas FBI office. He said during the eight years prior to the 2003 indictment, he provided lap dances, free drinks and cash to FBI Agent Bob Pellet.
The allegations against Pellet are not new and are the subject of an independent probe, said Special Agent Dave Staretz, a spokesman for the Las Vegas field office of the FBI.
“The Department of Justice Inspector General’s office has been looking those allegations,” Staretz said Monday evening. “There has not been a resolution to that investigation.”
Staretz said he did not know how long the Los Angeles office of the FBI Inspector General has been reviewing Galardi’s claims against Pellet.
Galardi also testified he gave campaign contributions to district judges George Assad, Donald Mosley and Municpal Court Judge Toy Gregory. He said that he and his father, Jack, contributed $10,000 apiece to Oscar Goodman when Goodman was considering running for Las Vegas mayor.
Goodman said the only money he knows about receiving from Galardi were two contributions of $5,000 each given during his run for re-election in 2003.
“I wouldn’t know this guy if I fell over him,” he said. “If it was a social setting, a fund-raiser, I have no recollection of it. But I could pass a polygraph that I haven’t met this fellow.”
Galardi said Christiansen and McDonald repeatedly told him that cash payments to elected officials and comped lap dances and drinks for attorneys were not illegal.
“I heard that all the time,” Galardi testified, adding that Christiansen told him “everything you’re doing is legit.” In hindsight, Galardi said he believes Christiansen reassured him “to keep the flow coming.”
Galaridi was admonished numerous times during his testimony. He repeatedly ignored pleas from U.S. District Judge Larry Hicks and Bernstein to stop his long-winded answers that veered away from the question posed.
For example, when Galardi acknowledged that he paid strippers to perform sex acts on politicians, district attorneys and police officers, Bernstein said he could have been charged with prostitution.
“How is it a crime when I’m doing it to a D.A.? He has to charge me. Is he going to charge me with getting Dario Herrera (oral sex)?” Galardi said.
Herrera’s sexual exploits have been discussed throughout the trial. Galardi said strippers provided Herrera oral sex inside Cheetah’s and during a golf outing at the Southern Highlands Golf Club. The prosecution said that sex was “the currency of their corruption.”
But Galardi revealed Monday that Herrera was not the only commissioner who was after sexual favors. Galardi said Kenny, who is married and has five children, asked if she could perform oral sex on him. Aside from their six encounters, Galardi said, “she wanted to have sex with me.” He said that did not happen.
Defense attorneys also continued with their theory that it is conceivable that Malone stole thousands of dollars in cash that Galardi intended to be delivered to politicians.
Galardi confirmed that when Malone was a commissioner, Galardi gave him $20,000 cash as a down payment for a Ford Excursion. But Malone put $9,000 down on the vehicle and kept the balance.