On June 4, 2015, Jeff Galloway, a former partner at Hughes, Hubbard & Reed (the firm founded by Chief Justice Charles Evans Hughes) entered a guilty plea to charges of criminal tax fraud in New York state court. During the relevant time period, Galloway reportedly was earning about $1 million per year.
According to a press release from District Attorney Cyrus Vance, Jr., Galloway did not file tax returns with the state for the years 2005 through 2010. In 2012, state tax department investigators confronted Galloway about the unfiled returns. Galloway claimed that he had filed the returns but had apparently made an error entering his Social Security number. Galloway then proceeded to file returns for the missing years, which included fraudulent deductions, such as rent on four Battery Park City apartments and monthly parking-garage fees for two personal vehicles.
According to the terms of the guilty plea, Galloway will serve three months in jail and several years of probation. The plea agreement obligates Galloway to pay a $600,000 fine and to resign from the New York State Bar Association. Galloway’s sentencing is scheduled for July 22, 2015.
—Michael T. Dawkins, Baker Donelson, Jackson, MS