FORMER FEDERAL PUBLIC DEFENDER INDICTED ON TAX CHARGES

Source: www.usdoj.gov/opa/pr/1999/February/058tax.htm

FRIDAY, FEBRUARY 19, 1999

WASHINGTON, D.C. - Former federal public defender James R. Gailey was indicted yesterday for filing false documents with the Internal Revenue Service, the Justice Department announced.

Gailey was charged with substantially understating his income on his 1992 income tax return and filing a false Form 4868 for the 1993 tax year -- an Application for Automatic Extension of Time to File U.S. Individual Income Tax Return form.

According to the indictment, Gailey entered into agreements to represent clients in two personal injury cases for which he allegedly received attorney's fees of $175,000 in 1992 and $197,200 in 1993. He is charged with substantially understating his income on his 1992 tax return and not reporting his true tax liability when he filed his 1993 Form 4868.

If convicted, Gailey faces a sentence of up to three years imprisonment and a fine of $250,000 for each of the two counts.