Tuesday, June 10, 2003 | 11:16 a.m.
Las Vegas Councilman Michael McDonald appeared this morning before a federal grand jury that is investigating possible political corruption tied to topless clubs.
McDonald showed up at the George Federal Building about 8 a.m. with his attorney Richard Wright at his side. Asked how he felt about his grand jury appearance, McDonald declined comment, but confidently winked at reporters. Wright, who also declined comment, was carrying a thick legal briefcase.
After they emerged from the grand jury room at 8:40 a.m., both men again declined to comment. McDonald smiled and referred all questions to Wright, but Wright would not even say whether McDonald had testified.
The grand jury is following up on a more-than-two-year FBI probe into possible political corruption tied to the owners of Las Vegas' Jaguars and Cheetahs strip clubs in Las Vegas and San Diego. When the clubs, the owners' offices and San Diego city counilmen's offices were raided May 14 by the FBI, one of the Las Vegas search warrants noted that agents were looking for, among other things, documentation of payments or gifts to McDonald and three other politicians: County Commission Chairwoman Mary Kincaid-Chauncey and former county commissioners Dario Herrera and Erin Kenny.
McDonald has maintained that he is not a target of the probe. He has acknowledged that FBI agents subpoenaed records from him and at a May 19 press conference he said he had met with the FBI but agents had asked him "to keep the details of that meeting confidential."
Kincaid-Chauncey, a former longtime North Las Vegas city councilwoman, has denied any wrongdoing but she acknowledged to the Sun that she had received money from the Galardis for "a trust fund." Since making that initial comment, however, she and her lawyer have refused to elaborate about that money.
Herrera, a former commission chairman who ran unsuccessfully in November for Congress, and Kenny, who lost a bid last year for lieutenant governor, have denied any wrongdoing.
Kincaid-Chauncey and Kenny have received letters saying they are targets of the investigation. Sources close to Herrera say he has also been notified that he is a target.
The name of a third former county commissioner, Lance Malone, did not appear on the search warrants executed at the clubs, but he is reported to be central figure in the investigation. Malone, who like McDonald is a former Metro Police officer, has been a lobbyist and consultant for Michael Galardi on projects in Las Vegas and San Diego since he left the commission in 2000.
Malone has denied any wrongdoing and has denied that he is cooperating with authorities.
McDonald was the only one of the current and former politicians who is known to have appeared before the grand jury so far.
After arriving at the courthouse this morning, McDonald and Wright rode the elevator to the second floor where the grand jury was meeting. As Wright opened the door to the grand jury room at 8:03 a.m., both men were greeted by Assistant U.S. Attorney Eric Johnson, who heads the Las Vegas Organized Crime Strike Force, which is conducting the investigation.
"Ah, there you are," Johnson said, as he let McDonald and Wright inside.
Assistant U.S. Attorney Kathleen Bliss, another member of the strike force, entered the grand jury room a couple of minutes later without commenting on the proceedings.
Johnson went back to his office after McDonald's appearance.
The grand jury had previously heard from accountants who worked for Jack and Michael Galardi, the owners of Jaguars and Cheetahs strip clubs.
McDonald has acknowledged that he received monthly payments under a contract to provide consulting to Mike Galardi.
McDonald has refused to say how much he was paid. "Mike trusts me, and I use my knowledge to help him but not my influence,' McDonald said at his May 19 news conference.
He has said he advised Galardi on such matters as possible locations for new sports bars. Galardi has not opened any sports bars in Las Vegas since McDonald was contracted.
McDonald has said he did not start working with Galardi until after he was elected to the City Council, He has said that was something that was covered in the meeting with the FBI.
"I've committed no wrongdoings on behalf of Mike Galardi," McDonald has said. "I've never lobbied the council on his behalf. And I abstained from voting on any issues that involved him. I have nothing to hide and that's why I'm fully cooperating with the FBI and opening up my records."
McDonald has said he has other consulting contracts but has refused to name his other clients. He says the pact with Mike Galardi is the only one involving a strip club.
After he lost his re-election bid this month, McDonald said the investigation and the subsequent controversy helped his opponent, Janet Moncrief. She will replace McDonald on the city council on June 18.
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