DISTRICT ATTORNEY - NEW YORK COUNTY

NEWS RELEASE
January 7 , 2008

Contact: Barbara Thompson
212.335.9400

Manhattan District Attorney Robert M. Morgenthau announced today that the owner of four Manhattan restaurants has pleaded guilty to under-reporting the gross receipts of his businesses.  As a result of his plea, the defendant will be sentenced to 30 days in jail and be required to pay $700,000 to New York City and New York State in evaded taxes, accrued interest and penalties.

The defendant is STEVE GALANIS, the owner of four Manhattan restaurants:  Cinema Café at 505 Third Avenue, Cinema 60 at 42-45 East 60th Street, Spartis Power Inc., at 1325-27 Second Avenue and Evrotas Enterprises, which is located at 2 East 45th Street.  He pleaded guilty today to two misdemeanor counts of Sales and Compensating Use Taxes (Fraudulent returns, reports, statements or other documents). 

As a result of today’s plea, the defendant was promised a sentence of 30 days in jail and be required to pay $700,212 in evaded taxes, interest and penalties.  The investigation revealed that GALANIS collected but failed to remit $517,117.30 in sales tax from December 2001 to November 2006 and owes $183,094.98 in interest and penalties.

Since the end of November, the Manhattan District Attorney’s Office has collected $4.5 million in New York State and City taxes, interest and criminal fines.

Today’s plea is the result of an investigation by the New York State Department of Taxation and Finance and the New York County District Attorney’s Money Laundering and Tax Crimes Unit.

The investigation leading to today’s guilty pleas was conducted by Assistant District Attorney Maurice Mathis under the supervision of Gilda I. Mariani, Chief of the District Attorney’s Money Laundering and Tax Crimes Unit and assisted by Investigative Analyst Evelyn Marrero.

For their participation in the investigation, Mr. Morgenthau thanked the New York State Department of Taxation and Finance, and Acting Commissioner Barbara G. Billet, Deputy Commissioner William J. Comiskey, Assistant Deputy Commissioner Peter Farrell, Revenue Crimes Bureau Director Bruce Kato, Chief Auditor Tommy Chan and Auditor Anella Johnson.

Mr. Morgenthau also thanked the New York City Police Department and Commissioner Raymond Kelly and District Attorney Squad Commander Captain Joseph Finn and Detectives Robert Mistretta and Carlo Farnoli.

Steve Galanis, 03/09/1963; 745 Route 9W, Nyack, NY.

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