Las Vegas Sun

March 28, 2024

Malone pleads not guilty to federal charges

SAN DIEGO -- Former Clark County Commissioner Lance Malone pleaded not guilty today to political corruption charges in federal court.

Malone was set to be released on a $250,000 personal appearance bond. He was expected to put up his Las Vegas residence as collateral.

Malone was expected to be released later today. His attorneys Dominic Gentile and Jerry DePalma had no comment after the hearing.

Malone was expressionless as reporters whirled around him this morning as he entered the federal courthouse to be arraigned on charges of wire fraud, extortion and racketeering.

Malone arrived at the courthouse about 9:30 a.m., changing his expression only once to humorous surprise when a television cameraman fell down.

Malone, who has said he did nothing wrong and whose attorney has vowed to fight the charges, did not answer questions from the media as he went inside the courthouse for a 10:30 a.m. arraignment before U.S. Magistrate Nita Stormes. He was ordered to return Oct. 23 for a status hearing.

Malone's arraignment comes a day after San Diego strip club manager John D'Intino's guilty plea to charges that he participated in a scheme to pay three San Diego city councilmen for political favors.

D'Intino's plea could be a bad sign for Malone and fellow defendants, including strip club owner Michael Galardi and the three San Diego councilmen, according to a former FBI organized crime expert.

George Togliatti, who used to lead the organized crime task force of the Las Vegas FBI office, said D'Intino's plea could lead to a role as a key witness.

"This is a big coup for the prosecution," Togliatti said. "We're just speculating, but with what he could know, and the possibility of him having a close relationship with the other defendants, it's a big move.

"He could have been privy to the entire process alleged in the indictment."

Prosecutors with the U.S. attorney's office in San Diego would not comment on whether D'Intino is cooperating with federal officials as part of the agreement, or on an addendum to the agreement that was sealed by U.S. District Judge Jeffrey Miller.

The indictment made public last week alleges that D'Intino, Malone and Galardi made illegal campaign contributions to three San Diego city councilmen to get them to relax regulation of clubs.

Galardi owns Cheetahs and Jaguars in Las Vegas and Cheetahs in San Diego, where D'Intino works.

As part of a plea agreement with prosecutors, D'Intino admitted he conspired with Galardi and Malone to pay money to the three councilmen "to corruptly influence them in the performance of their official duties, specifically, to advance the repeal of a 'no touch' provision," according to the plea agreement.

D'Intino also admitted that he "agreed with Galardi and Malone to pay money to a San Diego Police Officer (working undercover) in order to... obtain advance information of police department vice raids at Cheetahs."

The agreement further details that D'Intino has admitted he directed employees of Cheetahs, adult entertainers and others to write checks to various San Diego City Council candidates. D'Intino has also told prosecutors that he and others reimbursed those who made payments to the councilmen to disguise the true source of the funds.

D'Intino pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to possess unregistered firearms and firearms without serial numbers. Each count carries a maximum penalty of five years in prison and a $250,000 fine.

D'Intino was originally charged in two separate indictments, one listing 39 counts of wire fraud, conspiracy to commit wire fraud, extortion, racketeering, and aiding and abetting, and a second indictment involving nine counts of firearms violations.

D'Intino could have faced life in prison if convicted on all charges. Each carries sentences of five to 20 years in federal prison.

He was held without bail following his guilty plea and will remain in custody pending his January sentencing.

Galardi and the councilmen, Michael Zucchet, Ralph Inzunza and Charles Lewis, and Lewis' aide David Cowan all pleaded not guilty Friday and were released on bond. Galardi and Malone, who was working as Galardi's lobbyist, are charged with wire fraud, extortion and racketeering.

The councilmen are charged with wire fraud and conspiracy to commit wire fraud, and Zucchet and Inzunza are also charged with extortion.

Galardi wanted to get the council to repeal the city's "no touch" provision, which bars dancers from making contact with club patrons, according to prosecutors. A proposal to have the City Council reconsider the law never made it onto the agenda of a council committee.

A "no touch" ordinance similar to San Diego's, which made it illegal for topless dancers to touch patrons at strip clubs, was considered and initially passed by the Clark County Commission last year before being repealed.

The FBI's Las Vegas investigation remains open. The investigation became public after Galardi's clubs and office were raided on May 14, the same day that the San Diego councilmen's offices were searched by authorities.

Clark County Commission Chairwoman Mary Kincaid-Chauncey, former commissioners Dario Herrera and Erin Kenny, and former Las Vegas City Councilman Michael McDonald are all alleged targets or subjects in the Las Vegas investigation.

There have been no public indictments from the federal grand jury in Las Vegas in connection with the FBI investigation, which has been going on for more than two years.

Longtime Las Vegas attorney Stan Hunterton said the San Diego case's impact on the local federal case is "speculative" at this time.

The separate federal investigations in each city "may be entirely apples and oranges," Hunterton said.

The Associated Press contributed to this story

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