Tax Shelter Promoter Indicted on Racketeering Charges
NEW YORK (AP) _ One month after he and three others were charged with racketeering in several multi-million dollar fraud schemes, tax shelter promoter John Peter Galanis has been indicted by a federal grand jury.
The 58-count indictment, handed down Thursday in White Plains, N.Y., named Galanis and two others previously charged in a federal criminal complaint last month: Anthony Marchese, 46, of Southport, Conn., and Daniel S. Brier, 57, of Pound Ridge, N.Y.
A third man named in last month’s complaint was not indicted but prosecutors would not comment on his exclusion.
A pre-trial hearing for that man, John F. Landon, 39, of Park City, Utah, was adjourned for two weeks until June 26, often an indication of cooperation with investigators.
But Assistant U.S. Attorney Vincent L. Briccetti would not comment on whether Landon, who is free on bond, was cooperating.
The indictment also added three new co-defendants. They were identified as: Ronald G. Williams, 36, of Dallas, Texas; Samuel Rosengarten, 66, of Armonk, N.Y.; and Laurence Klusky, 38, of White Plains.
Both Rosengarten and Klusky were indicted with Galanis last month on New York state charges of bilking hundreds of investors through fraudulent tax shelter and investment schemes.
All six defendants were expected to be arraigned next Monday in White Plains before U.S. District Judge Charles L. Brieant Jr.
They all face maximum prison terms of more than 100 years and fines of more than $4 million if convicted on all counts.
They were accused of participating in a ″pattern of racketeering activity″ through an enterprise consisting of individuals and business entities all secretly controlled by Galanis.
Among those alleged activities was a conspiracy to create phony tax deductions, through fictitious business transactions, for limited partners in an oil and gas drilling syndicate known as Transpac Drilling Venture.
The indictment alleged that more than $172 million in fraudulent tax losses were passed on to about 2,500 investors in Transpac between 1982 and 1984.
In addition, the Galanis organization allegedly paid $370,000 in bribes to officials of the now defunct Peoples National Bank of Rockland County, N.Y. The Monsey, N.Y.-based bank was declared insolvent by federal officials in 1985.
The indictment also charged the Galanis organization with fraudulently taking control of the Heritage Bank & Trust of Salt Lake City. That bank was taken over by Utah banking officials last April.