October 24, 2007

Indictment Handed Down in $4M Law Firm Theft

Rice:  Galasso lived in the ‘lap of luxury’ on law firm’s dime

MINEOLA, NY – Nassau County District Attorney Kathleen Rice announced today that a grand jury has returned an indictment of Anthony Galasso, 54, of West Babylon, in connection with the embezzlement of more than $4.3 million dollars from his employer, a Garden City law firm where his brother serves as partner and the defendant works as a bookkeeper.

Rice said that the embezzlement from Galasso, Langione & Botter occurred over a more than two-year span that began in June 2004 and ended in January of this year.  During that time period, the defendant used his position as the firm’s financial record keeper to siphon money from an escrow account set up for one of its clients.  Rice said that the defendant spent the money on private jets to Atlantic City and other casinos, on payments for a 2007 Mercedes Benz E350, and on a $16,000 stay for his family at the Ritz Carlton Hotel in New York City.  Rice said Mr. Galasso also purchased more $200,000 worth of concert and sporting event tickets to shows like Barbara Streisand, The Lion King, Jimmy Buffet and Robin Williams.  Rice said the defendant purchased tickets to the 2005 Big East Men’s Basketball Tournament, a Yankees vs. Red Sox game, and a 2006 Mets National League Championship Series game.  In addition, Rice said the defendant paid his son’s New York University tuition, made extensive improvements to his West Babylon home, and took his family on a Disney World vacation with the money.

“This guy was living in the lap of luxury on someone else’s dime,” said Rice.  “We are going to hold him accountable for his actions and for the extraordinary impact his highflying lifestyle has had on this law firm.”   

Galasso, Langione & Botter specializes in “Personal Injury, Medical Malpractice, Matrimonial, Estates & Trusts, and Commercial Litigation.”  The escrow account used in this case was set up for a client who had recently sold a commercial property for more than $4.5 million dollars.  This money was placed in Escrow based on the firm’s belief that it could become the subject of an eventual divorce settlement.  The loss to the Escrow account as a result of this theft is thought to be approximately $4,351,571.04.

Mr. Galasso was arrested in January after an initial internal investigation by the law firm was handed over to authorities.  At the time of his arrest, Mr. Galasso was charged with one count of grand larceny and one count of falsifying a business record.

The 22-count indictment charges the defendant with two counts of Grand Larceny in the First Degree, ten counts of Falsifying Business Records in the First Degree, and ten counts of Criminal Possession of a Forged Instrument in the Second Degree.

Mr. Galasso was arraigned on the indictment this morning by Nassau County Court Judge George Peck.  The defendant remains out on $200,000 bail.  He was ordered by the judge to return to court December 10.  He faces a maximum of 25 years in prison if convicted of the charges.

Assistant District Attorney Bill Jorgenson, of the DA’s Government & Consumer Frauds Bureau, is handling the case for the District Attorney’s Office.  Mr. Galasso is being represented by Thomas Liotti, Esq., of Garden City.