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Strip Club Owner Testifies In City Council Trial

San Diego Councilmen Charged With Bribery

POSTED: 4:35 pm PDT June 9, 2005

A strip club owner testified Thursday that he gave thousands of dollars of his own money to the campaigns of three San Diego politicians in a bid to influence them into repealing a "no-touch" dancing ordinance.

Michael Galardi
Michael Galardi

Michael Galardi, 43, took the witness stand in the federal corruption trial of Councilmen Ralph Inzunza and Michael Zucchet, lobbyist Lance Malone and David Cowan, a former aide to Councilman Charles Lewis, who died last year.

The councilmen are accused of taking money from Galardi in return for help in changing San Diego's "no-touch" law, which was passed in October 2000. It prohibits touching between dancers and patrons in adult entertainment establishments.

Galardi testified that he decided to send Malone -- a former Clark County, Nev., commissioner -- to San Diego to lobby the City Council to change the "no-touch" law back to the less defined "lewd and lascivious" standards.

Galardi said he had already been paying Malone while he was a commissioner for help in getting the proper zoning requirements for two topless clubs that Galardi was opening in Las Vegas.

COUNCIL CORRUPTION

Malone was to be Galardi's front man whose sole purpose was to make sure "no-touch" didn't pass in San Diego or if it did, get the law changed, Galardi testified.

"I wanted him to come down to San Diego -- at any cost -- and get the law changed back to lewd and lascivious," Galardi said upon questioning by Assistant U.S. Attorney Robert Ciaffa.

"Whatever it took to get the law changed, whatever they wanted, I would do," he said.

Galardi -- who pleaded guilty in 2003 to conspiracy to commit wire fraud, along with Cheetah's San Diego manager John D'Intino -- had no interest in San Diego politics, but wanted the law changed to "benefit my business," he said.

The strip club owner also testified that he was willing to pay $50,000 to a San Diego vice officer who he thought was corrupt to go before the council and testify that "no-touch" was a waste of police resources and should be done away with.

"It was worth it to me," Galardi told the prosecutor.

If the vice officer were to testify that "no-touch" wasn't working, it would give the councilmen who voted to change the law "some cover," Galardi said.

Galardi wanted the council to include a proposal that would lengthen the distance between adult clubs -- something that would hurt his business -- as long as the repeal of "no-touch" was part of the deal, he testified.

Galardi said Malone had voted for passage of a similar distance increase between adult clubs in Las Vegas while he was a county commissioner.

The ordinance made it look like Malone hated the adult entertainment industry, Galardi said.

He said he started paying Malone $5,000 per month in 1999, while Malone was still a Clark County commissioner.

Galardi said he went to a Ford dealership and paid for half of a new Ford Excursion, giving Malone $25,000.

Later, Malone "demanded" a daily percentage of the proceeds at Cheetah's Las Vegas, Galardi said, adding that he also gave Malone a Rolex watch.

"He was taking care of business for me," Galardi testified.

Earlier, Cheetah's Las Vegas marketing director Mike Beezley testified that he helped Galardi and Malone execute a plan to give money to the campaigns of Lewis, Inzunza and Zucchet.

Beezley said his job was to get family, friends and Cheetah's employees to write $250 checks to the politicians. The donors would be later reimbursed in cash from Galardi, Beezley testified.

Beezley testified that he was told that the checks were going to San Diego councilmen would could be "adult-friendly" down the way.

The witness said his common sense told him the scheme wasn't legal.

"I was more worried about getting Mike (Galardi's) sandwich correct, if it had mayo or mustard on it," Beezley testified.

The councilmen 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.

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