RGeeProductions
06-04-2008, 09:37 AM
Trash hauler to forfeit $100 million in businesses; headed to prison in deal
James Galante on Tuesday agreed to give up ownership in 25 of his trash hauling companies, worth about $100 million, and accepted a prison term of between 70 and 87 months as part of a plea deal reached with federal prosecutors.
The 55-year-old trash kingpin, who operated Automated Waste Disposal and other trash companies, pleaded guilty to three charges in U.S. District Court in New Haven.
On June 8, 2006, Galante was indicted as part of a widespread racketeering case and imprisoned. He has been living under house arrest in New Fairfield since June 30, 2006.
Prosecutors said he took part in a property rights system, which they said destroyed free enterprise, allowing those involved to artificially inflate their prices.
His sentencing on the charges - racketeering conspiracy, conspiracy to defraud the IRS and conspiracy to commit wire fraud - will take place Aug. 22.
Galante stood in the courtroom at a podium next to his lawyer, Hugh Keefe, and admitted to Judge Ellen Bree Burns that he engaged in the wrongdoing. She ordered that he stay out of the trash business, except for one company, EnviroSolutions Inc.
"Yes, your honor," Galante said politely in response.
EnviroSolutions Inc. as a waste collection, transfer and disposal business in Virginia, with subsidiaries in Virginia, Maryland, New Jersey, West Virginia and Kentucky.
When asked if he challenged any of the prosecution's statements about what he did, Galante said quietly, "No, your honor."
At his sentencing he could be forced to pay a $750,000 fine. He will also have to pay the government about $1.6 million in income taxes, according to the plea bargain.
As part of the deal, he will get $10.8 million from the government after the 25 companies are sold.
Jeffrey Meyer, a former federal prosecutor who is now a Quinnipiac University School of Law professor, said the case was "the largest forfeiture case I've ever seen."
"I don't recall a criminal forfeiture case of this size in Connecticut any time in recent years ... ," Meyer said. "That's extremely punitive."
After the hearing, Nora Dannehy, Acting United States Attorney, thanked all the organizations, including state police and the FBI, involved in the case.
"The government is satisfied with this guilty plea," Dannehy said.
In all, 33 people were indicted, including Matty "The Horse" Ianniello, who prosecutors said was a high-ranking member of the Genovese family of La Cosa Nostra. The cases of three people - Christopher Rayner, Eric Romandi and Paul Galietti - are still pending.
Prosecutors alleged Galante paid Ianniello $200,000 in 2001, then $30,000 every three months until 2005.
Galante faced 93 criminal counts, including witness tampering, mail and wire fraud. There were also allegations that he and others conspired to commit arson and kidnapping by damaging a truck owned by one of his competitors and by kidnapping the driver of that truck at gunpoint.
On Tuesday, he admitted that in 2005 he tried to fix a bid for the operation of a transfer station in the state. He also admitted he told a co-conspirator in this case to tamper with a witness scheduled to appear before a grand jury.
He also pleaded guilty to being involved in a scheme to defraud the IRS with regard to personal and corporate tax returns.
Galante, who was the owner of the Danbury Trashers, admitted to circumventing the United Hockey League's $275,000 annual salary cap by having other co-conspirators prepare and fax fraudulent salary reports to the UHL office in Iowa about 30 different times.
Besides having to forfeit ownership interests in the 25 trash companies, he must also forfeit a home at 530 Main St. North in Southbury and adjoining parcels of land, six racing cars, a Featherlite Trailer used to haul the cars and $448,153 seized from his business office and home.
Karen Ali / NewsTimes
James Galante on Tuesday agreed to give up ownership in 25 of his trash hauling companies, worth about $100 million, and accepted a prison term of between 70 and 87 months as part of a plea deal reached with federal prosecutors.
The 55-year-old trash kingpin, who operated Automated Waste Disposal and other trash companies, pleaded guilty to three charges in U.S. District Court in New Haven.
On June 8, 2006, Galante was indicted as part of a widespread racketeering case and imprisoned. He has been living under house arrest in New Fairfield since June 30, 2006.
Prosecutors said he took part in a property rights system, which they said destroyed free enterprise, allowing those involved to artificially inflate their prices.
His sentencing on the charges - racketeering conspiracy, conspiracy to defraud the IRS and conspiracy to commit wire fraud - will take place Aug. 22.
Galante stood in the courtroom at a podium next to his lawyer, Hugh Keefe, and admitted to Judge Ellen Bree Burns that he engaged in the wrongdoing. She ordered that he stay out of the trash business, except for one company, EnviroSolutions Inc.
"Yes, your honor," Galante said politely in response.
EnviroSolutions Inc. as a waste collection, transfer and disposal business in Virginia, with subsidiaries in Virginia, Maryland, New Jersey, West Virginia and Kentucky.
When asked if he challenged any of the prosecution's statements about what he did, Galante said quietly, "No, your honor."
At his sentencing he could be forced to pay a $750,000 fine. He will also have to pay the government about $1.6 million in income taxes, according to the plea bargain.
As part of the deal, he will get $10.8 million from the government after the 25 companies are sold.
Jeffrey Meyer, a former federal prosecutor who is now a Quinnipiac University School of Law professor, said the case was "the largest forfeiture case I've ever seen."
"I don't recall a criminal forfeiture case of this size in Connecticut any time in recent years ... ," Meyer said. "That's extremely punitive."
After the hearing, Nora Dannehy, Acting United States Attorney, thanked all the organizations, including state police and the FBI, involved in the case.
"The government is satisfied with this guilty plea," Dannehy said.
In all, 33 people were indicted, including Matty "The Horse" Ianniello, who prosecutors said was a high-ranking member of the Genovese family of La Cosa Nostra. The cases of three people - Christopher Rayner, Eric Romandi and Paul Galietti - are still pending.
Prosecutors alleged Galante paid Ianniello $200,000 in 2001, then $30,000 every three months until 2005.
Galante faced 93 criminal counts, including witness tampering, mail and wire fraud. There were also allegations that he and others conspired to commit arson and kidnapping by damaging a truck owned by one of his competitors and by kidnapping the driver of that truck at gunpoint.
On Tuesday, he admitted that in 2005 he tried to fix a bid for the operation of a transfer station in the state. He also admitted he told a co-conspirator in this case to tamper with a witness scheduled to appear before a grand jury.
He also pleaded guilty to being involved in a scheme to defraud the IRS with regard to personal and corporate tax returns.
Galante, who was the owner of the Danbury Trashers, admitted to circumventing the United Hockey League's $275,000 annual salary cap by having other co-conspirators prepare and fax fraudulent salary reports to the UHL office in Iowa about 30 different times.
Besides having to forfeit ownership interests in the 25 trash companies, he must also forfeit a home at 530 Main St. North in Southbury and adjoining parcels of land, six racing cars, a Featherlite Trailer used to haul the cars and $448,153 seized from his business office and home.
Karen Ali / NewsTimes