Man Caught in Forged Check Scheme Also Evaded Taxes
|U.S. Attorney’s Office October 16, 2013|
PITTSBURGH—A resident of Allegheny County pleaded guilty in federal court to charges of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.
Kevin R. Gallagher pleaded guilty to two counts before United States District Court Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from November 2010 and continuing until January 2012, Gallagher knowingly executed a scheme to defraud First Niagra Bank. In connection with the scheme to defraud, Gallagher fraudulently obtained corporate checks of his employer, A&S Steel Buildings Corporation, made payable to subcontractors and forged the signatures of the subcontractor payees. It was a part of the scheme that Gallagher deposited the forged checks, which totaled $179,695, into his personal bank account at First Niagra Bank. Gallagher also willfully evaded income tax owed by him for tax year 2011. The total amount of tax loss to the federal government as a result of Gallagher’s tax evasion is $53,151.
Judge McVerry scheduled sentencing for January 23, 2014, at 9:30 a.m. The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Gallagher on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Internal Revenue Service, Criminal Investigation, conducted the investigation that lead to the prosecution of Gallagher.