Galanis Receives Stiff Sentence in Fraud Case : Gets 27 Years for Bilking Victims of $150 Million; Attorney Vows to Appeal

John Peter Galanis, one of the country’s top white-collar crime figures, was sentenced to 27 years in prison Wednesday on a wide range of charges including fraud, bribery and racketeering.

The 45-year-old Galanis--known in his heyday for his flamboyant life style--was sentenced in federal court in White Plains, N.Y., by Judge Charles L. Brieant. He was convicted July 5 on 44 counts after a three-month trial and nine days of jury deliberation.

Galanis has made millions of dollars during his business career as an investor and tax-shelter promoter, but he has also been indicted six times, served six months in prison and twice been barred by the Securities and Exchange Commission from selling securities.

Rudolph W. Giuliani, U.S. Attorney for the Southern District of New York, hailed the sentence as a stiff one that “sends precisely the right message to wealthy and privileged crooks who cheat to make additional millions upon millions.”

Before he was sentenced, Galanis appealed for mercy by reading from the Bible, according to Vincent L. Briccetti, a prosecutor in the Galanis case. Although Galanis couldn’t be reached for comment, his attorney, Brian Barrett, condemned the sentence as much too harsh.

Free During Appeal

“We are appealing,” Barrett said. “With all due respect to Judge Brieant, we feel it’s an excessive sentence that is vastly inappropriate for . . . a white-collar crime.”

Brieant allowed Galanis to remain free pending appeal, but Briccetti said he would challenge that. “We think he is dangerous,” Briccetti said. Galanis, who has luxury homes in San Diego and Greenwich, Conn., is free on a $20-million bond.

Fourteen people have been convicted in connection with Galanis’ criminal activities, which included bribery, fraud and illegal takeovers involving financial institutions and mutual funds in New York, Utah, Connecticut and California. The California case involved looting $3.9 million from three mutual funds in Oakland.

In all, Galanis’ various criminal schemes cheated taxpayers, investors, financial institutions and shareholders out of an estimated $150 million, prosecutors said. Galanis’ fraud convictions stemmed from tax, securities and banking violations.

Arrested in 1987

Sophisticated and charming, Galanis was legendary among associates for his love of wild parties, big meals and huge tips. He thought nothing of giving hotel doormen $20 or paying $400 or more for a good bottle of wine. Galanis, known by maitre d’s in the best restaurants of New York and San Diego, often ballooned to weights of well above 300 pounds.

Galanis’ good life collapsed in May, 1987, when police arrested him at his oceanfront home in Del Mar on state and federal fraud charges. Galanis is awaiting trial in Manhattan on the state charges, which center on his involvement in the 1986 financial collapse of a huge renovation project in Atlantic City, N.J.

Giuliani, in a press release, said he hoped that the Galanis sentence sends a message to other white-collar criminals.

“Hopefully,” the prosecutor said, “those like Galanis . . . who are involved in multimillion-dollar frauds and corruption will realize that no matter how wealthy or how powerful they believe they are, no matter complex their scheme, they too can be brought to justice.”