Eric Galanti, former owner of two West Seattle businesses, sentenced for tax evasion

3 PM: Just in from the regional U.S. Attorney’s Office:

The former owner of three bars and restaurants in the Seattle area was sentenced today in U.S. District Court in Seattle to eight months in prison, one year of supervised release, and $800,000 in restitution for multiple misdemeanor counts of failing to file tax returns, announced U.S. Attorney Annette L. Hayes.

Eric M. Galanti, 41, who now resides in Olympia, failed to file his business and personal tax returns between 2006 and 2012. Galanti owned several restaurants during that time including Alki Crab & Fish in West Seattle, the Admiral Pub in West Seattle, and Bourbon Jacks (aka Poppas Pub or Charlies Pub) in Kent.

At the sentencing hearing, U.S. District Judge Richard A. Jones said Galanti “enjoyed the lifestyle of the ‘rich and famous,’… but every single year when April 15th rolled around a light had to come on that you owed taxes…. This was a flagrant and ongoing offense.”

According to records filed in the case, the lengthy investigation by the Internal Revenue Service Criminal Investigation Division found that Galanti’s businesses were generating significant revenues, but he failed to keep accurate records. Bank records show two of the restaurants had deposits of more than $7.7 million between 2006 and 2011. While he failed to file and pay his taxes, Galanti enjoyed a lavish lifestyle: using forged tax documents to facilitate his purchase of a $400,000 yacht; taking expensive trips to Hawaii, Las Vegas, and the Caribbean; and paying more than $10,000 for Kenny Chesney concert tickets.

“As we approach tax day, Mr. Galanti’s sentence reminds us of our legal obligation to file complete and accurate tax returns with the IRS. Today, Mr. Galanti, who willfully failed to pay $800,000 in taxes, learned the consequences of neglecting his duty as an American and as a small business owner,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Instead of paying taxes, Mr. Galanti rewarded himself with lavish vacations and a new yacht. His decision to ignore his civic responsibilities caught up with him today.”

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Norman Barbosa.

We have a request out for documents in the case. You might recall that one of the named local establishments, Alki Crab and Fish, closed five years ago after losing the Seacrest Boathouse concession space to Marination.

3:40 PM: After reading through additional documents provided on request by the U.S. Attorney’s Office, here’s what else we have learned: The sentence follows a plea agreement reached in January, related to an indictment from March 2016. In the plea agreement, Galanti pleaded guilty to five counts of failure to file corporate tax returns. In the defense memo prepared for the sentencing hearing, it’s noted that Galanti gave up running his own businesses in 2015 and went back to working for his father, and is living with his parents in Olympia.

16 Replies to "Eric Galanti, former owner of two West Seattle businesses, sentenced for tax evasion"

  • Alan April 14, 2017 (4:30 pm)

    Eric must have heard Steve Martin’s “You can be a millionaire and never pay taxes” and taken it seriously.

    https://www.youtube.com/watch?v=zXmQW_aqBks

  • H April 14, 2017 (4:40 pm)

    Wow

  • Westside45 April 14, 2017 (5:06 pm)

    $10k for Kenny Chesney tickets? And he didn’t use an insanity defense?

  • newnative April 14, 2017 (5:14 pm)

    I remember the outrage over the Mom and Pop fish shop losing the bid. Glad Marination is a part of our community. 

  • Ms Evelyn April 14, 2017 (6:28 pm)

    I remember 4 years or so ago when the IRS showed up at his door, literally!  Sure took a long time to rake him over the coals…He lived high on the hog way to long.  8 months prison?  Piece of cake.  Daddy will rescue him again.  Was very glad when he & his “family” moved out of the neighborhood.  Obviously he is not a good man or American!

    • Snickers April 16, 2017 (9:09 pm)

      Wow. Far is a lot of people are concerned, the dad should be right along with him!!!!

  • Swede7 April 14, 2017 (8:06 pm)

    Kenny Chesney concert? I’ll bet Eric could write a great country song after this little experience. Looks like he and his cell mate will have some quality time together to come up with some wonderful lyrics!

  • justme April 14, 2017 (9:09 pm)

    Swede7 LOL

  • Trickycoolj April 15, 2017 (10:45 am)

    I had the unfortunate pleasure of attending a bachelorette party at Burbon Jacks…. not surprised at all. 

  • Swede. April 15, 2017 (11:14 am)

    That’s a long time to bust him. He should been as ‘smart’ as the Donald and had his bookkeeper since he bragged about not paying taxes… 

  • Diane April 15, 2017 (1:48 pm)

    I was reminded by Stranger post/story about this last night, about the immigrant worker at Admiral Pub who was being cheated out of his earned wages by this guy (the Stranger post said he was then deported); I remember the activist protesters in my Admiral neighborhood, at the pub, picketing to demand workers at Admiral Pub get their wages; I wonder how many of this guy’s employees were cheated out of their pay, especially if he thought he could cheat them due to their immigrant status 

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