George Knapp, Investigative Reporter
Operation G-Sting: Exclusive Look at Documents
(Nov. 23) -- Operation G-Sting is alive and well. Eyewitness News broke the story of alleged political corruption last year, and although it's been quiet of late, Eyewitness News has obtained new information.
The I-Team has learned about the potential scope of the investigation. Eyewitness News got an exclusive look at documents related to the investigation, documents which reveal the true depth and breadth of what the FBI has been offered by its central witness -- strip club owner Mike Galardi.
Galardi has painted a disturbing picture of political corruption so widespread that it seems to reach into every corner of local government. He told the FBI that payoffs were made in the form of cash, checks, cars, and sex to those officials willing to help his business.
At a meeting of the Clark County Commission, held at the end of July 2002, commissioners met to consider two ordinances that would drastically change the way adult nightclubs were regulated. The chamber was packed with strippers and their supporters. An X-rated video compiled by undercover Metro officers was played.
There were heated confrontations between audience members and Commissioner Yvonne Atkinson Gates, the sponsor of the proposals that initially sought to ban so-called lap dances. Now, the I-Team has learned, federal authorities requested and received videotapes of the entire lap dance meeting.
It's not clear what they might be looking for. On the tapes. During the meetings, then- Commissioner's Dario Herrera and Mary Kincaid Chauncey both questioned the need for new controls on adult nightclubs.
Both would later be indicted for allegedly taking bribes from club owner Mike Galardi. And while the commission did approve changes in the regulation of adult clubs, the lap dance ban instead became a lap dance legalization.
Since FBI agents raided Mike Galardi's strip clubs in Las Vegas and San Diego in 2003, there have been other indictments.
Former county Commissioners Lance Malone and Erin Kenny included. Also Galardi has agreed to be a cooperative witness. The I-Team has obtained detailed information about the full scope of what Galardi has offered to say under oath.
He claims to have paid Erin Kenny $10,000 a month, a total of close to $200,000, and says Kenny told him she was getting $20,000 a month from a prominent developer. Dario Herrera, Galardi says, was paid in increments of $5,000 to $30,000 at a time, all in cash, including one payment delivered from the trunk of Galardi's car. Mary Kincaid Chauncey received close to $80,000, Galardi said. Lance Malone was making close to $250,000 a year from Galardi. Malone's main job, according to Galardi, was to deliver payoffs and contributions to other officials.
Among the names given to the feds are those of at least six local judges. Galardi also gave up the names of eleven Metro officers who allegedly took comps, drinks, and sexual favors from dancers. Sexual favors were also allegedly supplied to at least one judge. The names of six FBI agents were also listed by Galardi for taking comps and sex.
Galardi alleges that a stable of prosecutors were regular customers, accepted comps, drinks, and sex acts from dancers. Deputy DA's, he claims, also served as conduits for under-the-table payments to judges, Galardi says.
On the day of the FBI raids, Galardi was nowhere near his clubs. The reason . He was tipped off that a raid was coming, not once but twice, he says. Tip offs were not unusual, Galardi claims. His clubs gave regular comps to building inspectors, fire inspectors, high ranking fire officials. Even health dept inspectors.
In return, he received advance warning about inspections and was always given a break. While his business was incredibly lucrative, by the end, Galardi told the FBI he was quote held hostage by the politicians, and that everyone, it seemed, had their hands out.
City of Las Vegas officials are also named in the documents Eyewitness News read, and we will look at some of that information in future reports. Also, of all the people who received money, it looks as if Lance Malone was one of the few to formally declare his earnings and one of the few who declined any sexual favors.




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