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Council Meets For First Time After Indictments

Two Employees Of Strip Club Owner To Surrender

POSTED: 8:33 am PDT September 2, 2003
UPDATED: 11:31 am PDT September 2, 2003

The San Diego City Council are meeting for the first time today since three of its members were indicted on extortion, wire fraud and conspiracy charges.

Michael Galardi

Meantime, two employees of strip club owner Michael Galardi (pictured, left) are due in court to plead to charges that they helped him bribe the three councilmen in an effort to have the city's "no touch" nude dancing ordinance repealed.

Lance Malone, a lobbyist for Galardi's Cheetahs clubs, and Cheetahs night manager John D'Intino are scheduled to be arraigned at the downtown federal courthouse.

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The two men are charged in a 39-count indictment handed down last week, which also accuses San Diego city councilmen Ralph Inzunza, Charles Lewis and Michael Zucchet of wire fraud and conspiracy. Zucchet and Inzunza are also charged with extortion.

The councilmen pleaded not guilty to the charges Friday and were released on their own recognizance after each posting a $25,000 bond.

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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.

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.

Zucchet, Lewis and Inzunza said they would not resign from office.

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, 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 allegedly was supposed to tip off the operator whenever undercover officers were on their way to Cheetahs.

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.

D'Intino is also charged with interstate travel in aid of racketeering.

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.

According to the indictment, Galardi and Malone agreed to contribute thousands of dollars to the campaign funds of the three council members and 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, according to U.S. Attorney Carol Lam.

The alleged 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.

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.


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