April 8, 2004

PRESS RELEASE

NEW BEDFORD FISH BUSINESS OWNER ARRESTED ON TAX CHARGES

Boston, MA... A New Bedford man was arrested today on federal charges of tax evasion.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced that JOSE J. GALINHA, age 51, of Faith Avenue, Fairhaven, Massachusetts, was arrested today on a criminal complaint charging him with willfully attempting to evade federal employment taxes.

According to the affidavit filed in support of the complaint, it is alleged that GALINHA, the owner of J.G. Seafood Co., Inc., a fish cutting business located in New Bedford, Massachusetts, failed to report cash wages paid to his employees on quarterly federal employment tax returns beginning with the 1st Quarter of 1998 and ending with the last Quarter of 2002. It is alleged that GALINHA cashed company checks on a weekly basis, often in amounts just below the $10,000 federal reporting requirements and used the cash to pay his employees wages "under the table". It is further alleged that when weekly cash wages exceeded $10,000, GALINHA cashed company checks made payable to fictitious names at a local sports club, of which GALINHA is the current vice-president, and used that cash to pay employees the additional wages. It is alleged that the total amount of cash wages that GALINHA failed to report on Quarterly Forms 941 for 1998 through 2002 to be close to $3 million. It is alleged that the additional employment tax due and owing on such cash wages would be in excess of $700,000.

GALINHA was arrested this morning on the charges and will appear this afternoon before Chief U.S. Magistrate Judge Marianne B. Bowler. If convicted, GALINHA faces a maximum sentence of 5 years in prison, to be followed by3 years of supervised release and a $100,000 fine.

The investigation is continuing.

The case is being investigated by the U.S. Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Brian Kelly in Sullivan's Organized Crime Strike Force Unit.

Press Contact: Samantha Martin, (617) 748-3139