The Chicago Syndicate: Sam Galioto Indicted for Failing to Report $3 Million in Personal Income from Downtown Real Estate Deal
The Mission Impossible Backpack

Monday, October 19, 2015

Sam Galioto Indicted for Failing to Report $3 Million in Personal Income from Downtown Real Estate Deal

A Kenilworth businessman has been indicted on charges he evaded federal income taxes by concealing $3 million he earned in connection with a high-rise real estate deal in downtown Chicago, federal authorities announced. SALVATORE GALIOTO earned $3 million in personal income as part of the acquisition of nine floors in a high-rise building at 55 E. Washington St. in Chicago in 2007, according to the indictment. The seller, Pittsfield Development LLC, paid the money as a consulting fee for closing the deal. Instead of reporting the money on his personal income taxes, Galioto caused false partnership tax returns to be prepared and filed, misstating that the $3 million was earned in 2008 by his company, 55 E. Washington Development LLC, according to the indictment.

The indictment was returned Thursday afternoon in U.S. District Court in Chicago. It charges Galioto with one count of corrupt interference with the administration of Internal Revenue Service laws, and three counts of willfully making false and fraudulent statements to the IRS. Galioto, 54, also known as “Sam Galioto” and “Sammy Galioto,” will be arraigned on a future date to be set by the Court.

According to the charges, Galioto entered into a consulting agreement with Pittsfield on or about March 28, 2007. The agreement called for Pittsfield to pay $3 million to Galioto when the sale was completed. On or about Dec. 28, 2007, Galioto’s company purchased floors 13-21 from Pittsfield for $22,652,876.82, the indictment states.

Galioto concealed receipt of Pittsfield’s payment by having it paid to his relative as a nominee. The relative is identified in the indictment only as “Individual C.” On or about Dec. 31, 2007, Pittsfield sent a portion of Galioto’s consulting fee to Individual C in the form of a check for $962,121.75. Shortly thereafter, Galioto caused Individual C to sign and endorse the check over to Galioto, who took possession of it, endorsed it, and deposited it for his own use, according to the indictment. Galioto failed to report that money in his individual federal income tax returns for the years 2007 and 2008, the indictment alleges.

Instead, the false partnership returns were filed, misstating that Galioto’s company had earned the $3 million in 2008, the indictment alleges. The corrupt interference charge carries a maximum sentence of three years in federal prison and a $5,000 fine. Each count of making false and fraudulent statements to the IRS is punishable by up to three years in prison and a fine of $100,000.

No comments:

Post a Comment

Affliction!

Affliction Sale

Flash Mafia Book Sales!