Source: www.usdoj.gov\opa\pr\1999\August\381tax.htm

THURSDAY, AUGUST 26, 1999

FORMER FEDERAL PUBLIC DEFENDER PLEADS GUILTY TO TAX CHARGES

WASHINGTON, D.C. - James R. Gailey, former federal public defender for the Southern District of Florida, pled guilty to criminal tax charges today, the Department of Justice announced.

Gailey pled guilty to an Information charging him with one felony count of filing a false U.S. Individual Income Tax Return, Form 1040, in which he reported his total 1992 income as $111,100.50, although he knew his income was substantially greater.

The government contended, according to the plea agreement, that Gailey's actions resulted in a tax loss to the U.S. of more than $100,000. In return for his pleading guilty to the Information, the government agreed to dismiss the original two count indictment at sentencing.

Judge K. Michael Moore scheduled sentencing for November 4, 1999. Under the terms of the Plea Agreement, Gailey could face up to three years imprisonment, followed by a term of supervised release. The court could also fine Gailey up to $250,000 and order him to make restitution.

The case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Arthur S. Lowry and Michael Yurkanin, Tax Division Trial Attorneys.