Las Vegas NowGuilty Verdicts in G-Sting Case

Guilty Verdicts in G-Sting Case

The verdict's are in for the San Diego portion of the political corruption trial known as G-Sting. The jury found former Clark County Commissioner Lance Malone guilty of conspiracy and wire fraud. They also found two San Diego City councilmen guilty of conspiracy and extortion.

Channel 8 Eyewitness News has followed this case from the beginning when George Knapp broke the story in 2003.

The verdicts were an overwhelming victory for federal prosecutors in the political corruption case. Former Las Vegas politician Lance Malone and two San Diego councilmen were found guilty of a long list of corruption charges, an ominous harbinger for Nevada targets of the G-Sting probe.

"When the public gets an idea of why we're under this investigation, they're gonna be outraged by it," said Lance Malone, former Clark County commissioner, when the trial started. As it turned out, the public -- in the forum of 12 jurors -- was not outraged by the government investigation into San Diego political corruption. The eight-man four-woman panel found the defendants guilty of most of the 40 counts.

San Diego councilman Michael Zucchet, who was just appointed interim mayor after the previous mayor resigned in scandal, guilty of conspiracy, extortion, and wire fraud.

Councilman Ralph Inzunza, from a prominent San Diego political family, guilty of the same charges. Former Clark County Commissioner Lance Malone, who became a lobbyist for strip club owner Mike Galardi, guilty of conspiracy and 32 counts of write fraud stemming from his use of his cell phone to contact the councilmen about a plan to change San Diego's so-called no touch ordinance concerning strip clubs.

After the verdicts were read, Malone left without comment, but his lawyer Dominic Gentile talked to Eyewitness News by phone. "He and Rosemary are disappointed and saddened by it but it's not like they haven't had two years to think that it could occur, and I'll tell you that his resolve with respect to the future has not changed and we will be going to trial in Nevada," said Dominic Gentile, Malone's defense lawyer.

The only bright spot for Malone is that he was acquitted of racketeering charges related to the attempted bribery of a San Diego police officer. Gentile thinks that is because the jury did not believe the testimony of undercover operative Tony Montagna, a central figure in the bribery allegations.

The other star witness, strip club owner Mike Galardi, might have been more credible since his allegations against the defendants stuck. Gentile says the convictions resulted from the FBI's audiotapes, not because of Galardi.

The defense argued all along that this was simply a case of a lobbyist handing out campaign contributions in hopes of getting access to politicians who might be persuaded to help. Gentile, who is understandably disappointed with the verdicts, thinks there will be ripple effects throughout the country as elected officials wonder at what point the acceptance of campaign money makes them a target for criminal prosecution.

"It will have a definite chilling effect on people who are running for office. Just how much communication and what type of communication they will run the risk of taking with people that have contributed to their campaigns," said Dominic Gentile, Malone's defense lawyer.

Monday's verdict is not good news for those involved in the other half of the case in Las Vegas. A very similar political corruption case is set to go to court in January. As with San Diego, politicians in Las Vegas are under intense scrutiny for potential corruption.

The evidence here is considered much stronger than in San Diego. That case was a test of the credibility of star witness Mike Galardi who plead guilty months ago and agreed to testify. He will testify in Las Vegas as well.

The four big players in this case are all former Clark County commissioners. Mary Kincaid-Chauncey, the former chair of the commission, faces nine counts, including conspiracy, wire fraud and extortion.

Dario Herrera faces 17 similar counts. Lance Malone, who was just found guilty, faces 16 counts. All three have plead not guilty. Erin Kenny, however, has pleaded guilty to wire fraud and conspiracy. Even though she will testify for the prosecution in the Las Vegas case, she could face up to 20 years in prison.

Even though those are the only four politicians facing prison in the Las Vegas trial, there are countless others who could easily have their names and reputations dragged through mud during the process. Galardi has provided the FBI with names of FBI agents, local judges, Metro police officers, prosecutors and deputy district attorneys who allegedly took comps, drinks and free lap dances at his club.