'Well-Paid' Former State of CT Employee Going to Prison

East Hampton resident George Gallo, who served as chief of staff to the minority leader of the Connecticut House of Representatives, will be sent to prison after lying to FBI agents and receiving more than $100,000 in a scheme that U.S. Attorney Deirdre Daly says “took advantage of Connecticut’s public campaign financing system.”

Gallo, 47, was sentenced to 12 months and one day of imprisonment Thursday, Aug. 27, for receiving more than $100,000 from a political campaign direct mail vendor to whom he steered business.

He has been ordered to pay restitution in the amount of $117,266.63 and to report to prison on Nov. 30, 2015.

“While he was a well-paid state employee, this defendant took advantage of Connecticut’s public campaign financing system by steering business to campaign vendors with whom he had a business relationship and profited handsomely as a result,” according to Daly. “He further abused his position of trust as Chief of Staff to the Minority Leader of the Connecticut House of Representatives by lying and causing others to lie to candidates who were following his directions. This prison term should serve as a warning. Corrupt public employees will be prosecuted.”

The prison term will be followed up by three years of supervised release.

As part of Gallo’s responsibilities, he was tasked with designing and overseeing the campaign program of the House Republican Campaign Committee, HRCC, a state-registered political action committee that provides material and strategic support to Republican candidates for the Connecticut House of Representatives.

“Good For [The Company] and Good for George Gallo”

In 2008, Gallo and others developed an HRCC campaign program in preparation for the first general election cycle, in which candidates seeking election to the Connecticut General Assembly or statewide office would receive public financing through the state’s Citizens’ Election Program, or CEP.

The new program was designed to coordinate CEP-funded campaigns by providing Republican House candidates with access to comprehensive campaign related services, including:

• Direct mail services
• Voter information
• Polling
• Messaging advice
• Campaign management

Gallo selected the campaign service vendors that were permitted to participate in the HRCC program.

He informed an employee of a Florida-based company that provided direct mail services to political campaigns of a new business opportunity in Connecticut. He indicated to the employee that the CEP would lead to greater numbers of well-funded Republican House candidates in need of direct mail services, and that the Florida company could serve as a HRCC sponsored vendor with access to CEP funded Republican candidates.

In exchange, the Florida-based company would then make payments to Gallo, equal to 10 percent of the revenue the company received from candidates participating in the HRCC program.

Gallo indicated to the employee that such an arrangement would be “good for [the company] and good for George Gallo.” The employee agreed to the proposal.

As part of the scheme, Gallo and the HRCC hosted “campaign schools” for House Republican candidates where HRCC sponsored vendors, including the Florida company, gave presentations marketing their services.

Gallo and others arranged for candidates to meet individually with the Florida company to discuss in greater detail the company’s services, prices and a direct mail plan. These meetings occurred at several locations, including the State Capitol.

A Denial of Financial Relationships

During the 2008 and 2012 election cycles, Gallo made false representations to the Minority Leader of the Connecticut House of Representatives that he did not have a financial relationship with or receive any compensation from any of the HRCC sponsored vendors.

During the 2008, 2010 and 2012 election cycles, Gallo made additional false representations to others, knowing that his statements would be communicated to House Republican candidates participating in the HRCC campaign program, that he did not receive any compensation from any HRCC-sponsored vendor.

From 2008 through 2012, the Florida company mailed checks made payable to the Vinco Group, a Cromwell based limited liability company in which Gallo was the sole member, totaling approximately $117,266.63.

False Statements Made to the FBI

Gallo also made multiple false statements to FBI special agents on October 1, 2013, when he was interviewed about his relationship with HRCC sponsored vendors.

In the interview, Gallo denied that either he or the Vinco Group had a business relationship with any vendors utilized by HRCC, and he denied that he had received any income through the Vinco Group since becoming Chief of Staff to the Connecticut House Minority Leader.

Mail Fraud

On April 27, 2015, Gallo pleaded guilty to one count of mail fraud.

Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.

This matter was investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Public Corruption Task Force and the State Election Enforcement Commission. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.

(image via shutterstock)