Clark County Commissioner Mary Kincaid-Chauncey and former commissioners Lance Malone and Dario Herrera pleaded not guilty this morning to charges they traded political influence for money and gifts from a local strip club owner.
U.S. Magistrate Judge Peggy Leen released the three on personal recognizance bonds and set Jan. 20 as their trial date. U.S. District Court Judge Larry Hicks is to hear the case.
All three have maintained their innocence since their Nov. 6 federal indictments and made their first court appearance at 8:30 a.m. today at the George Federal Building in downtown Las Vegas.
As she left the courthouse, Kincaid Chauncey said the 10-minute hearing, "wasn't the funnest thing I've done."
Malone and Herrera remained at the George Building after the hearing for about an hour being fingerprinted and photographed by the U.S. Marshals. Kincaid-Chauncey went through the pre-trial procedure on Thursday.
Federal prosecutors allege the politicians took thousands of dollars in exchange for their votes and use of their influence to help Michael Galardi's strip clubs Jaguars, Cheetahs and Leopard Lounge.
Kincaid-Chauncey has repeatedly said she has done nothing wrong, and Malone and Herrera have denied the charges through their attorneys.
Malone and his attorney, Dominic Gentile, and Herrera and his attorneys, Eric Goodman and David Brown, had no comment after the hearing. Kincaid-Chauncey and her attorney, Richard Wright, also refused further comment.
Leen released Kincaid-Chauncey, 65, and Herrera, 30, with no conditions, but ordered Malone, 41, to restrict his travel to California, Utah, and Nevada. She also told Malone he wasn't allowed to go to Mexico, and that he couldn't possess any controlled substances or firearms.
Leen told the defendants that they were giving their "personal promise to appear in court when required," and that if they violated any laws during their release they could be jailed.
The indictment charges Kincaid-Chauncey, Herrera and Malone with one count each of conspiracy to commit wire fraud, and 14 counts each of wire fraud. In addition Malone was charged with racketeering, Herrera faces eight counts of extortion, and Kincaid-Chauncey faces four extortion counts.
Prior to the hearing Herrera sat with his wife, Emily, in the courtroom. He also talked with Kincaid-Chauncey.
During the hearing, which was attended by U.S. Attorney for Nevada Dan Bogden, all three answered procedural questions from Leen with "yes" or"yes, your honor."
The mood at the hearing was lightened when Herrera's attorneys pointed out a mistake in a federal pre-trial services report that indicated Herrera did not adequately speak and write English.
Assistant U.S. Attorney Dan Schiess, who is prosecuting the case, said that was a typo and that he felt Herrera's degree from UNLV proves he understands English.
Schiess said he would provide the defense attorneys with a timeline for discovery of evidence next week.
"There are numerous audio interceptions and video," Schiess said.
Drawing largely from those wiretaps, prosecutors allege that Galardi had been trying to bribe politicians, funneling $200,000 to $400,000 to commissioners. Galardi's plea agreement says the club owner tried to bribe public officials between 1994 and 2003, but the indictment focuses on events from 1999 to 2003.
Prosecutors say the commissioners voted to change an ordinance regulating the touching at strip clubs and changed zoning ordinances to help Galardi's clubs. The indictment alleges that the commissioners also "controlled and harassed" Galardi's competitors and voted to deny a promotion for a county employee who didn't move quickly enough on a license for one of Galardi's businesses.
According to the indictment, at least as early as 1999 Malone had solicited money, property and services from Galardi in exchange for furthering his interests. Malone eventually "became a middleman for Galardi" to get money to other commissioners, Bogden said.
Galardi and former Clark County Commissioner Erin Kenny have already pleaded guilty in the case, and are both cooperating with authorities in the ongoing investigation.
Kenny pleaded guilty to one count of conspiracy to commit wire fraud and two counts of wire fraud, and Galardi pleaded to a racketeering charge.
Galardi has also agreed to forfeit $3.85 million to the government, pay $200,000 in restitution to both the city of Las Vegas and the county, and give up ownership of his clubs. Kenny has agreed to forfeit $70,258.53.
If convicted Malone could face up to five years in prison on the conspiracy charge and up to 20 years on the racketeering charge. If convicted on all charges Malone could forfeit $1.45 million to the government.
Herrera and Kincaid-Chauncey could face maximum sentences of five years in prison on the conspiracy charges and 20 years on each of the wire fraud and extortion charges. Kincaid-Chauncey could be forced to forfeit $100,000 and Herrera could be forced to forfeit $170,000.
The investigation became public on May 14 when the FBI raided Galardi's clubs and Las Vegas office. On the same day a parallel investigation in San Diego became public knowledge when the Galardi-owned Cheetahs there and the offices of three San Diego city councilmen were raided.
Galardi pleaded guilty to one count of conspiracy to commit wire fraud in the San Diego case, which involves payments of illegal campaign contributions to public officials in an attempt to loosen strip club regulations in that city.
The San Diego investigation has also resulted in the additional indictments of Malone and the three San Diego city councilmen.
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