SAN DIEGO -- A newspaper article on campaign contributions prompted a strip club lobbyist to tell three councilmen that future contributions would come from San Diego instead of Las Vegas, according to court testimony Wednesday.
The jury in the federal corruption trial of councilmen Ralph Inzunza, Michael Zucchet, lobbyist Lance Malone and council aide David Cowan continued to hear secretly recorded conversations from 2001 and 2002.
Inzunza and Zucchet are accused of taking monetary bribes from Malone's boss, strip club owner Michael Galardi, in return for help in repealing San Diego's "no-touch" dancing ordinance.
The law, passed in 2000, prohibits any physical contact between dancers and customers in adult entertainment establishments.
Assistant U.S. Attorney Paul Cook asked FBI Special Agent Leonard Davey questions about the secretly recorded conversations.
On Aug. 5, 2001, Malone left a message on Inzunza's home phone regarding an article in the San Diego Union-Tribune indicating Lewis, who was running for City Council, had taken money from Las Vegas adult entertainment business owners.
"You should be able to take money from whoever you want," Malone told Inzunza. "Hopefully this hasn't caused much heartache for both of you."
In a later call, Galardi is heard talking to Malone.
"So we made the f------ing paper?" Galardi asked. "I don't want that. Get it to `em some other way."
Malone told Galardi, "In the future, we'll just do things differently."
In another secretly recorded call, Lewis told Malone that Zucchet leaked the contribution story to the newspaper because he was friends with Lewis' opponent.
"That was a hit on me," Lewis told Malone.
In the conversation, Malone told Lewis that if Zucchet becomes a "problem," he will report him for not returning checks Malone gave him within 10 days.
At the time, Zucchet was in a hotly contested race for District 2 and Inzunza was going to have an easier time getting reelected.
A subsequent newspaper story included quotes from Lewis' opponent demanding that he return money he got from Las Vegas.
Malone told Lewis that the adult entertainment business is legal and very well regulated.
In an Aug. 10, 2001 call, Malone told Galardi that reporters had been calling him.
"They want to know why we have such an interest in San Diego," Malone told his boss. "Now we have to ease off."
In a secretly recorded call from Sept. 5, 2001, Inzunza told Malone that a man at a luncheon was questioning Lewis' motives for taking Las Vegas money from strip club owners.
"I'm not worried about it at all," Inzunza told Malone.
In a Feb. 7, 2002, conversation, Inzunza told Malone that he was "the man."
"I think Zucchet is coming on. He's my boy," Inzunza told Malone.
Inzunza told Malone that he had raised $16,000 for Zucchet and plans to raise another $8,000 at an upcoming luncheon.
"Can I put you down for a couple thousand?" Inzunza asked Malone, who agrees.
"If you need more money, we'll just get it through San Diego," Malone told Lewis.
Inzunza, Zucchet, Lewis and Malone were charged nearly two years ago with extortion, wire fraud and conspiracy to commit wire fraud. Cowan is charged with lying to the FBI.
Lewis died last summer of complications from liver disease.
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