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Former House Finance Chairman Pleads Guilty to Federal Charges
PROVIDENCE – In a shocking turn of events, former Rhode Island House Finance Chairman Raymond E. Gallison, Jr., 64, of Bristol, R.I., pleaded guilty to federal mail fraud, wire fraud, aggravated identity theft, and tax charges, announced United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin.
Appearing before U.S. District Court Chief Judge William E. Smith, Gallison admitted to orchestrating wide-ranging fraudulent and deceptive schemes to steal private money and hide his misuse of public money. Gallison admitted to the theft of funds from the estate of a deceased individual to which he was appointed executor; theft of funds from a Special Needs Trust established to protect the long-term welfare of a disabled individual to which he was appointed trustee; providing false information on tax documents, including vastly inflating the number of students assisted by a non-profit organization funded by public money while failing to disclose amounts paid by that organization to him; and failure to pay taxes on income derived from his criminal actions.
Gallison pleaded guilty to four counts of mail fraud; one count of wire fraud; one count of aggravated identity theft; one count of aiding the filing of a false tax document; and two counts of filing a false tax return.
At the time of his guilty plea, Gallison admitted to the court that he devised and executed various schemes to steal or transfer to his own name and bank accounts, cash, checks, stocks, and real property belonging to the deceased person and/or his estate, valued at a total of $677,454.10. Gallison will admit that he fraudulently used the name and social security number of the deceased person to execute a scheme to cause the liquidation of certain stocks belonging to the deceased person.
He also caused the filing of a false tax document on behalf of Alternative Education Programming (AEP), a non-profit organization which provided educational programs to students who may need assistance with course work, and/or minority and/or disadvantaged students who may need financial or other assistance to gain an education, and of which Gallison was listed as Assistant Director. The tax document listed that $77,957 in tuition and related fees and expenses were paid for 47 students from July 1, 2012, through June 30, 2013. In fact, on behalf of AEP, Gallison paid only $3,137.29 to assist 2 students during that year and paid approximately $64,575 to himself and another person in wages and consulting fees for no work undertaken on AEP’s behalf.
Gallison is scheduled to be sentenced on June 16, 2017. Based on statutory penalties, Gallison will serve, at a minimum, two years in federal prison.
Key Facts
- State: Rhode Island
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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