Showing posts with label Sam Galioto. Show all posts
Showing posts with label Sam Galioto. Show all posts

Friday, October 23, 2015

Did Reputed Mob Associate Sammy Galioto Hide $3 Million to Avoid Paying Taxes?

How do you hide $3 million? Federal authorities say a ranking member of a Chicago mob family siphoned that much through an intricate scheme to avoid paying taxes.

Federal prosecutors are going after Salvatore "Sammy" Galioto the old fashioned way; the maneuver they used 80 years ago to take down Al Capone - tax evasion charges.

Authorities say Galioto tried to hide a $3 million consulting fee from a downtown condo deal. Galioto is part of a family that for 20 years has been into all sorts of deals - real estate, strip clubs, labor unions, health care and gambling.

"Where's the exit?" Galioto shouted to a courthouse deputy Thursday as he walked with urgency out of the Dirksen Federal Building.

The 54-year-old Kenilworth resident had just given up DNA and posted bail on these federal charges that he evaded U.S. income taxes by concealing $3 million in personal income.

Investigators say the scheme involved a Loop high-rise known as the Pittsfield Building; in 2007 Galioto received the handsome consulting for the sale of just nine floors. Instead of reporting the income, they say he filed false paperwork to cover it up and paid no taxes.

The beefy Galioto hails from a family with deep outfit connections.

He and his father - a one-time Chicago policeman - were first listed as mob associates on a Chicago crime commission list nearly 20 years ago.

Mobologists say the Galiotos were aligned with the late Tackets boss Sam "Wings" Carlisi, and that imprisoned mob boss Little Jimmy Marcello is related by marriage to the family.

Galioto and his father William were in the middle of a West Side movie studio groundbreaking in 1995 that was torpedoed once the family's history surfaced. After initially backing the deal, once the family's mob ties were made known, the administration of then-Mayor Richard M. Daley stumbled through damage control.

A few years later in Missouri, Galioto was indicted for Medicare fraud, money laundering and conspiracy. He pleaded guilty and was sentenced to 10 months in prison.

On Thursday after court, neither Galioto nor his attorney would discuss the latest criminal charges.

While it may seem unusual that Galioto was made to give up DNA in tax evasion case, federal prosecutors and Galioto's attorney say it is normal even in white collar cases.

His lawyer Cindy Giacchetti says nothing should be read into that as significant.

If convicted of all counts, Galioto faces 12 years in jail and a $1million fine.

Thanks to Chuck Goudie.

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.


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