Billion-dollar tax evasion scheme rocks downtown Chicago as Kenilworth businessman Salvatore Galioto, 54, faces indictment for hiding $3 million in consulting fees from 2007 real estate deal.
Galioto, also known as ‘Sam Galioto’ and ‘Sammy Galioto,’ allegedly earned the $3 million as part of the acquisition of nine floors in a high-rise building at 55 E. Washington St. in Chicago in 2007.
The seller, Pittsfield Development LLC, paid the money as a consulting fee for closing the deal, but Galioto failed to report the income on his personal tax returns, instead causing 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.
The indictment 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.
The corrupt interference charge carries a maximum sentence of three years in federal prison and a $5,000 fine, while 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.
Galioto’s arraignment is set for a future date to be determined by the court. He is represented by Assistant U.S. Attorney Patrick Otlewski.
The government is urging the public to remember that an indictment is not evidence of guilt, and that Galioto is presumed innocent until proven guilty beyond a reasonable doubt.
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Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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