Bail for Galanis on Fraud Charges Set at $10 Million

A criminal court judge in Manhattan set bail Wednesday at an unusually high $10 million for John Peter Galanis, the San Diego County man arrested earlier this month on state and federal charges involving alleged massive securities fraud.

The ruling by state Judge Harold Rothwax effectively means that Galanis, a 44-year-old convicted swindler, has little chance of getting out of jail anytime soon. Bail on the federal charges had already been set at a minimum of $3 million.

Galanis and several associates were arrested in connection with alleged schemes involving the sale of fraudulent oil and gas and real estate partnerships across the country. The charges also included the fraudulent takeover of a bank in Utah and bribery of officials at a bank in Upstate New York.

In one Galanis-controlled project in Atlantic City, N.J., nearly 1,400 investors put more than $75 million into limited partnerships that were formed to restore a hotel and commercial area. The project is now in bankruptcy.

Obviously in no mood to go easy on Galanis, Rothwax said he decided upon the $10-million bail “after careful consideration” that included reading 1,200 pages of grand jury testimony in connection with the charges against Galanis and his co-defendants. Rothwax said from the bench that Galanis is an extremely wealthy man who drives a Rolls Royce and owns a Lockheed jet airplane.