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September 8, 2003

United States Attorney Carol C. Lam announced that Michael Galardi pled guilty today in federal court in San Diego to one count of conspiracy to commit wire fraud. The defendant entered his guilty plea before United States District Judge Jeffery T. Miller.

In an indictment returned by a federal grand jury August 28, 2003, Galardi, the Las Vegas owner of Cheetahs, an adult entertainment club in San Diego, was charged as a co-defendant with San Diego City Councilmen Ralph Inzunza, Charles Lewis and Michael Zucchet in the wire fraud conspiracy, whose object was to deprive the citizens of San Diego of their right to honest services.

In his plea agreement, Galardi admitted that between August 2000 and May 14, 2003, he agreed with co-defendants John D'Intino (who has pled guilty on September 2, 2003 to the same offense), Lance Malone and others to pay money to an undercover San Diego Police Officer and to the three Councilmen in order to corruptly influence them in the performance of their official duties. Galardi further admitted that he agreed with D'Intino, Malone and others to cause the Councilmen to conceal, disguise and fail to disclose material information to the City of San Diego, its City Council and its citizens. In addition, Galardi admitted that he directed others to make contributions to San Diego politicians, and reimbursed the "straw" contributors. Finally, Galardi admitted that he paid for travel, lodging and entertainment expenses in Las Vegas for Councilman Lewis.

The offense to which Galardi has pled guilty carries a maximum penalty of five years imprisonment and a $250,000 fine. Galardi will remain free on bail pending sentencing.

CASE NUMBER: 03-CR 2434-JM

DEFENDANT

MICHAEL GALARDI
Las Vegas, Nevada

SUMMARY OF CHARGES

Conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.
The charge of conspiracy to commit wire fraud carries a maximum penalty of 5 years' imprisonment
and a $250,000 fine.