SAN DIEGO -- Three San Diego city councilmen indicted on charges of taking bribes from a strip club owner to repeal a "no-touch" ordinance pleaded not guilty Friday to wire fraud, conspiracy and extortion charges.

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Michael Zucchet, (pictured, middle), Ralph Inzunza, (pictured, far left), and Charles L. Lewis, (pictured, left) were released on their own recognizance after pledging to Magistrate Judge Larry Burns that they would each post a $25,000 bond.

Lewis' aide David Cowan pleaded not guilty to a charge of making a false statement to the FBI and was released after agreeing to post the same bond as the councilmen.

Michael Galardi, who owns strip clubs in San Diego and Las Vegas, pleaded not guilty to charges of wire fraud, conspiracy, extortion and interstate travel in aid of racketeering. He was released after agreeing to post a $250,000 bond.

All were ordered to return to court on Oct. 23 for a motions hearing.

The City Council members were indicted Thursday on federal wire fraud and conspiracy charges. Zucchet and Inzunza also are charged with extortion. All three categorically denied committing wrongdoing.

Also indicted was Lance Malone, a former Las Vegas police officer and county commissioner who later worked for Galardi's Cheetahs clubs; and John D'Intino, another Galardi associate.

FBI agents raided City Hall on May 14, searching the offices of Lewis, Inzunza and Zucchet. Simultaneously, agents searched Cheetahs in San Diego and Cheetahs and Jaguars sites in Las Vegas, all owned by Galardi.

The indictment alleges that Galardi and his employees -- Malone and D'Intino -- sought the repeal of San Diego's "no-touch" provision of the Nude Entertainment Business ordinance, particularly as it applied to Cheetahs.

It also alleges that Galardi, Malone and D'Intino paid money to an undercover San Diego police vice detective and to the three councilmen to corruptly influence them in the performance of their official duties.

The vice officer was allegedly intended to provide warnings whenever undercover officers planned unannounced visits to Cheetahs in search of violations of the no-touch law.

The government also contends that the councilmen agreed to be corruptly influenced to advance the repeal of the "no touch" provision, and that they concealed, disguised and failed to disclose material information.

"The people of San Diego have a right to an open and honest government," U.S. Attorney Carol Lam, (pictured, right) said Thursday. "We are committed to ensuring that San Diego is represented by officials who are free from corrupt influence."

Galardi, Malone and D'Intino are also charged with interstate travel in aid of racketeering, according to the indictment.

The indictments were the product of a three-year investigation by the U.S. attorney's office and the FBI, which relied on wiretaps and listening devices planted in City Hall.

Council members were followed and their cellular telephone conversations recorded, according to the indictment.

In one phone call, Inzunza allegedly promised Malone that lifting the no-touch provision would be hidden in an overall review of the city's nude entertainment law that would include some new restrictions as a smokescreen, the Los Angeles Times reported.

Inzunza allegedly told Malone the new ordinance would have "four or five things that sort of slaps you guys on the hand and then we'll allow touching," according to The Times.

Dancers and owners of nude businesses complain that the no-touch rule costs them money because male patrons are more likely to tip a naked woman than one wearing panties and a G-string, as is required by the rule adopted by the council in November 2000.

According to the indictment, Galardi and Malone, (pictured, left), agreed to contribute thousands of dollars to the campaign funds of the three council members but to disguise the origin of the contributions by having other people sign the checks. City law limits individual contributions to $500 and prohibits anyone from reimbursing a contributor.

Violations of campaign laws are usually dealt with by state prosecutors and the state Fair Political Practices Commission, but the case became a federal matter because of the suggestion of bribery, Lam said.

The alleged covert campaign to change city law never succeeded and would have faced an uphill struggle even if three council members had supported it. Any bid to change the "no-touch" ordinance would have required five votes on the nine-member City Council.

City Attorney Casey Gwinn said the council members can continue to serve. However, a guilty plea or a conviction could result in their removal from office.

"It will be incredibly challenging for this city to keep operating with three council members under federal indictment," Gwinn said. "It will be very difficult as long as they remain in office."

If any of the council members were to resign, a special election would have to be held.

But Mayor Dick Murphy, a former Superior Court judge, said he believes that the three councilmen should remain in their posts during the criminal process.

"As the mayor of the city of San Diego, I want to assure the public that this city council will stay focused on the issues facing this city. San Diego is still America's finest city and we will continue to ensure that it remains a city worthy of your affection," Murphy, (pictured, left), said."

Murphy said these were not the first indictments of San Diego City Council members and not all indictments have ended in convictions -- a reference to a case in the 1970s in which a council majority was indicted for allegedly taking bribes from Yellow Cab Co.

One council member was convicted; cases against the others were dropped or ended in not-guilty verdicts.

Lewis and Inzunza were council aides before being elected to succeed their bosses, and both were criticized during their campaigns for taking contributions from associates of the nude entertainment industry.

Lewis was elected in 2002. Inzunza was elected in 2001 to fill out the term of Juan Vargas, a San Diego Democrat now serving in the Assembly, and then reelected in 2002.

Zucchet was director of governmental affairs for the firefighters union before his election in 2002.