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Michael Galardi gets 15-month term in San Diego; the $159 B a year business will miss him

SAN DIEGO — After receiving a 15-month prison sentence Thursday for paying cash bribes to San Diego city councilmen, former strip club mogul Michael Galardi [pictured left] said he intends to leave the adult entertainment industry altogether.

“I feel if I wasn’t in this business, I wouldn’t be in the trouble I’m in,” the 45-year-old millionaire said.

Citing Galardi’s assistance in the federal government’s political corruption case that stretched from San Diego to Las Vegas, U.S. District Judge Jeffrey T. Miller levied a sentence far more lenient than the 30-month term Galardi received in Las Vegas last week.

“Mr. Galardi’s testimony was generally reliable and obviously of significant value to the government,” Miller said.

The judge allowed the sentences to run concurrently, though he was not required to do so.

Galardi’s plea deal with Las Vegas prosecutors included language that said his sentence would run concurrently to the term levied in San Diego. But his plea agreement in California, which was signed before the Nevada deal, did not include the same terms.

Because Galardi was sentenced in Las Vegas first, Miller could have tacked the 15 months onto the term levied by U.S. District Judge Larry Hicks.

Prosecutors supported Miller’s decision.

“We feel it’s the fair thing to do for Mr. Galardi to get the spirit of the (San Diego) agreement,” said Assistant U.S. Attorney Robert Ciaffa.

Galardi’s lawyer, Robert Rose, asked that his client serve his term in Lompoc, Calif., Sheridan, Ore., or Yankton, S.D., all facilities that offer drug and alcohol rehabilitation programs. The federal camp in Taft, Calif., the facility originally requested by Galardi, has no such program.

Galardi is required to begin serving his sentence by June 22.

Galardi was indicted in 2003 on charges of paying off San Diego City Councilmen Ralph Inzunza, Charles Lewis and Michael Zucchet. Lewis died before the 2005 trial, and Miller overturned most of the felony counts against Zucchet. Zucchet faces a retrial on conspiracy and fraud charges. Inzunza was sentenced to 21 months in prison.

Galardi also was charged with bribing Clark County Commissioners Erin Kenny, Dario Herrera and Mary Kincaid-Chauncey in exchange for votes that benefited his clubs.

Kenny pleaded guilty and is cooperating with the government. She is to be sentenced later this year.

A jury convicted Herrera and Kincaid-Chauncey. He is serving a 51-month prison term, and she is serving a 30-month sentence.

Lance Malone, a former Clark County commissioner and one-time police officer who served as Galardi’s bagman, received a three-year prison sentence in San Diego and a six-year term in Las Vegas. He was ordered to begin serving his sentence by April 9.

Although the government was armed with thousands of hours of recordings from intercepted phone calls, Galardi’s assistance was crucial in explaining to jurors what the conversations were about and what he and Malone were trying to accomplish, Ciaffa said.

He said Galardi fulfilled his promise to cooperate “immediately and unconditionally.”

Prosecutors recommended a one-year sentence, but Miller added three months because Galardi was the leader of the illicit enterprise. The judge could have hammered Galardi for his leadership role.

“Although Mr. Galardi was the leader of the enterprise, he did little more than provide the money,” Miller said in explaining the sentence.

The difference in terms was related to the amount of money Galardi paid out. In Las Vegas, he was accused of paying hundreds of thousands to elected officials. The amounts paid to the San Diego councilmen were placed at $34,500.

Miller ordered Galardi to pay a $30,000 fine in San Diego.

Over the past four years, Galardi has complied with requirements to pay about $500,000 in fines and restitution in Nevada and forfeit $3.85 million to the federal government.

Galardi’s lighter San Diego prison term was reflected in his demeanor after the hearing. After his sentencing in Las Vegas, Galardi stormed past reporters waiting outside the courthouse; in San Diego, he opened up and discussed his plans, politicians and his former right-hand man, Malone.

“Lance betrayed me,” Galardi said, noting Malone told prosecutors he falsely led Galardi to believe that he had forged a tight relationship with the San Diego councilmen and that they were working to repeal an ordinance prohibiting touching between dancers and patrons at strip clubs.

The two federal judges in Las Vegas and San Diego each admonished Galardi for tarnishing the reputation of politicians and bolstering the public’s mistrust in government. But Galardi said the public was skeptical of politicians before the scandal and would continue to be after he is thrown in prison.

“They feel they’re corrupt, and I agree with them,” Galardi said. “It’s business as usual in Vegas now. The streets of Las Vegas are not safer now because I’m going away.”

Galardi was required to divest himself of his strip club in San Diego and three businesses in Las Vegas. Until he completes a three-year supervised release after prison, he is not allowed to own or manage a club in California. The Nevada plea deal does not prohibit him from rejoining the adult entertainment industry when he is released.

Galardi’s father, Jack Galardi, owns dozens of topless clubs. Michael Galardi estimated the family owns more than 40 topless businesses across the country. He could take over the clubs when his father, who is in poor health, dies.

But he said that was not his first choice. When asked what type of work he would do if he wasn’t involved in strip clubs, Galardi mulled over the question. His answer: He wouldn’t necessarily have to work because if he sold all the family clubs, he would rake in $500 million.

Galardi said he does not want his two children, ages 8 and 10, to be raised in the business. He said his family was poor when he was growing up, leaving him with few options other than following his father into the strip club business.

His family is wealthy now. According to statements made in court Thursday, Galardi’s assets amount to $45 million. He is paid $177,000 a month under an arrangement with his father.

“They (the children) will have more opportunities than I had. They’ll go to college,” the younger Galardi said. “When you own a topless club, you’re not seen in a high light.”

Galardi read a similar speech to Miller as he did to Hicks in Las Vegas. He professed his love for the city of San Diego and apologized to the community. Outside the courtroom, he thanked the San Diego prosecutors for treating him with respect during his four years of cooperation.

“It’s been four years of pure hell, and I’m just glad it’s over,” Galardi said. “I’m ready to start my life over.”

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