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FORMER FEDERAL PUBLIC DEFENDER

WASHINGTON, D.C. -- Former Federal Public Defender for the Southern District of Florida, James R. Gailey, was today sentenced to one year probation with a special condition of home confinement for six months by U.S. District Judge K. Michael Moore for filing a false income tax return. In addition, Gailey was ordered to cooperate with the IRS related to his tax problems and to perform 100 hours of community service.

A federal grand jury in Miami returned a two-count indictment against Gailey in February, 1999, for substantially understating his income on his 1992 income tax return and filing a false Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) for 1993. According to the indictment, Gailey entered into agreements to represent clients in two personal injury cases, for which Gailey allegedly received attorney's fees of $175,000 in 1992 and $197,200 in 1993.

Gailey pled guilty on August 26, 1999, to an Information charging him with one felony count of filing a false U.S. Individual Income Tax Return, Form 1040, in which he reported his total 1992 income was $111,100.50, although he knew his income was substantially greater.

Under the terms of the plea agreement, the government agreed to dismiss the original two-count indictment in return for his guilty plea.

The case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Department of Justice Trial Attorneys Arthur S. Lowry and Michael Yurkanin.

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99-527