Salvatore "Sammy" Galioto 54, is accused of hiding income he received as part of a 2007 consulting agreement with Pittsfield Development LLC, which owns the Pittsfield Building.
Businessman with reputed mob ties indicted on charges of hiding $3 million from IRS
A Kenilworth businessman with reputed long-standing ties to the Chicago Outfit has been charged with tax evasion for allegedly hiding $3 million in proceeds from the sale of a portion of a Loop condominium tower eight years ago.
Salvatore "Sammy" Galioto was charged in an indictment handed up Thursday with four counts of federal income tax evasion, court records show.
Galioto, 54, was accused of hiding income he received as part of a March 2007 consulting agreement with Pittsfield Development LLC, which owns the historic Pittsfield Building at 55 E. Washington St., according to the indictment.
Galioto's father, William Galioto, is a former Chicago cop and the brother-in-law of onetime Outfit leader James Marcello, who is serving a life sentence for his conviction in the landmark Family Secrets trial. His brother, John Galioto, was ousted from his Laborers Union leadership position in 1998 after he was accused of being an Outfit bookie, records show.
All three Galiotos also have been named in the Chicago Crime Commission's list of reputed mob associates.
The charges alleged Salvatore Galioto was paid $3 million in exchange for his "consulting services" in the sale of floors 13 through 21 of the 38-story Pittsfield tower as well as an elevator shaft and a portion of the lobby. The sale closed in December 2007 for $22.65 million, according to the indictment.
Galioto hid the income in part by having a check for more than $962,000 issued to an undisclosed relative, who then endorsed the check over to Galioto, according to the indictment. Galioto also submitted false forms to the Internal Revenue Service regarding the Pittsfield sale that were signed by an undisclosed person who had an ownership interest in the development, the charges alleged.
In 2008 and 2009, Galioto filed false returns that failed to report the income from the sale. In his 2009 return, Galioto claimed he was in the red, listing an income of minus $10,119, the indictment alleged.
Federal court records show that Galioto was convicted of health care fraud in Missouri in 2000 for submitting bogus claims for incontinence supplies that were not medically necessary. He was sentenced to 10 months in prison and paid $150,000 in fines and restitution, records show.
In 1994, Galioto and his father were indicted on mob-connected gambling charges in DuPage County, but the case was later dropped, records show.
William and Salvatore Galioto also have made headlines for their roles in the movie business. Together they owned Movies in Motion Inc., a production company that leased vehicles and provided union drivers for studios looking to film in Chicago, records show.
Controversy erupted in 1995 when the Galiotos were revealed to be behind-the-scenes investors seeking a multimillion-dollar low-interest loan from the city for a proposed movie studio on Chicago's West Side. Mayor Richard Daley killed the deal after the Galiotos' alleged mob ties were brought to light and embarrassed City Hall.