He fought to clear his name. But after a jury heard his voice on devastating surreptitious recordings, Thomas Gallagher gave up and became the latest co-conspirator to plead guilty in a sprawling mortgage fraud scam.
Gallagher — a real estate appraiser and a West Haven police commissioner — pleaded guilty in federal court in Hartford to one count of making a false statement. He faces a maximum of five years in jail and up to $250,000 in fines.
Until his plea late Monday, he was one of six area people on trial for their alleged roles in a scam that cheated lenders out of millions of dollars and left struggling New Haven neighborhoods with trashed, abandoned houses. Click here and here to read about that.
Earlier on Monday, while he was still a defendant asserting his innocence, Gallagher could be heard on tape recordings played in court arranging to have photos doctored to make it look like homes were improved, when in fact they weren’t. He used those photos to help prepare inflated appraisals on those properties in order to fool lenders and get bogus mortgages, which the scam’s alleged co-conspirators divvied up. Read details about those recordings here.
“Tom Gallagher has devoted many years of service to his community. His family and friends stand beside him during this difficult time,” Gallagher’s lawyer, Alex V. Hernandez, said after the sudden plea Monday. “We look forward to bringing his many and diverse, admirable qualities to the attention of Chief Judge Thompson at the time of sentencing.”
Previous coverage of this case:
• Slum-Photo Doctor Makes A Call
• What Happened At Goodfellas Didn’t Stay At Goodfellas
• Fraud Trial Opens With Oz-Like Yarn
• “Partying” MySpacer Lined Up Scam Homebuyers
• “Straw Buyer” Pleads Guilty
• Neighbors, Taxpayers Left With The Tab
• FBI Arrests Police Commissioner, Slumlord, Rabbi
• One Last Gambit Falls Short
• Was He In “Custody”?
• Is Slum Landlord Helping The FBI?
• Feds Snag Poverty Landlord
West Haven Police Commissioner and real estate appraiser, Thomas Gallagher, is a well dressed older white male. He is clearly not poor (dressed too well), not deprived, not a struggling, inner-city person looking for a quick buck. Luckily they have him on tape, or else-- most likely-- he would have gone into court and impressed the judge (and, or jury) with his classy persona and his lawyer's tale about his good deeds. He would have likely walked away scotch free. This is what happens all the time. These slick willies are seen not for the crooks that they are, but as being caught up into some unfortunate situation.
The poor (who can neither afford the sleek suits or smooth-talking lawyers) get the book thrown at them and they end up with big jail time. I am not saying they should get away with committing crimes. I am saying that all thugs should be made to pay for their crimes. Let's see what happens this time now that this thug cannot wiggle and lie his way out of this bit of white-collar crime. A thug is a thug whether he or she wears a slick suit and hires an equally slick lawyer or not; they should ALL pay for their crimes.