Well-Heeled NY Attorney Cops to Tax Fraud

     MANHATTAN (CN) – A New York attorney with a cushy income as a partner with Hughes, Hubbard, and Reed pleaded guilty to tax fraud, prosecutors said Thursday.
     Jeff Galloway, who turned 61 last week, admitted to failing to file his New York state personal income tax return and pay New York state personal income taxes.
     The law firm partner was earning close to $1 million a year between 2005 and 2010 when he failed to file his New York state personal income tax returns and pay the taxes owed upon his earnings, prosecutors said.
     When the state approached Galloway about his “repeated failure to file” in April 2012, Galloway cited a supposed “typographical error” in trying to divert attention.
     Insisting that he had filed his tax returns in a timely manner, Galloway said he must have fumbled entering his Social Security number in the returns.
     When Galloway then filed fraudulent, amended tax returns for the years in question, the New Yorker improperly tried to deduct “the rent for all four of his residential apartments in Battery Park City,” plus monthly garage parking in Manhattan for two personal vehicles, according to a statement from prosecutors.
     Galloway repeated his lies about the nonexistent original tax returns from 2005 to 2010, and about the excessive deductions in his fraudulent amended returns, in subsequent meetings and communications with the Department of Taxation and Finance, the city says.
     The Manhattan Supreme Court will sentence Galloway for third-degree criminal tax fraud on July 22.

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