Las Vegas NowNEW G-Sting: Feds Investigate Former Las Vegas Councilman

NEW G-Sting: Feds Investigate Former Las Vegas Councilman

The G-Sting political corruption investigation isn't finished after all. Eyewitness News has learned federal authorities are now investigating a former elected official whose name has been previously linked to the G-Sting probe.

On the same day former Clark County Commissioner Erin Kenny was sentenced to prison for her part in the G-Sting bribery scandal, an event that many assumed would be the end of the line for the G-Sting probe, a flurry of subpoenas was issued by the U.S. attorney's office compelling the testimony of local persons before a federal grand jury.

The Department of Justice is seeking information about former Las Vegas City Councilman Michael McDonald. In a surveillance photo taken by FBI agents, McDonald is seen meeting with former strip club owner Mike Galardi, who is now in prison for paying bribes to four county commissioners. The commissioners have also been sentenced.

As the I-Team has reported previously, McDonald was the first public official to come under scrutiny for possible corruption, but he's never been charged with anything because he declared the payments he received from Galardi as outside income and was careful to refrain from voting on matters related to Galardi's clubs. McDonald's company became a consultant to Galardi during the time Jaguar's strip club was being built.

When told by Eyewitness News about the issuance of subpoenas, McDonald declined to comment. In the past, though, he's acknowledged the U.S. attorney has been in possession of all of his financial records for the past few years and even used the Patriot Act to acquire some of them. In a previous interview, he told the I-Team he'd been totally cooperative.

Michael McDonald, former Las Vegas councilman, said, "I've never hidden anything. My books are fully open. I'm cooperating with the authorities. My books are fully open, and I'm not a target."

It's not known for certain how many subpoenas were sent out last week, but Eyewitness News does know it's at least two.

The grand jury is asking to hear testimony in August from persons who've done business with McDonald's company, or who are familiar with his financial records.

A subpoena for information does not mean he will be indicted and Eyewitness News has not been told that he has been told he's a target.

It's all hush-hush at this point, but the I-Team will have more information as it becomes available.

E-mail your comments to Chief Investigative Reporter George Knapp.