Joseph Edward Gallagher, 67, the former president and CEO of AFL Telecommunications, has been sentenced to over three years in federal prison for wire fraud, according to the U.S. Attorney’s Office for the District of South Carolina. Gallagher, who earned over $2 million annually, devised a scheme to defraud his company, AFL Telecommunications, to fund the construction of his personal beach house on Kiawah Island.
Gallagher falsely claimed that EPIC Development Group, LLC, a construction company, was a consultant to AFL for government contracts and optical infrastructure. In reality, EPIC was involved in building Gallagher’s personal beach house. Gallagher altered invoices submitted by EPIC and misrepresented them as consulting work for AFL. He then submitted these fraudulent invoices for payment, securing approximately $2.5 million from AFL. EPIC was unaware of the fraudulent activity.
U.S. Attorney Brook B. Andrews remarked that Gallagher’s actions were a serious breach of trust and noted that individuals in positions of authority who commit such acts of fraud will face serious consequences.
In addition to his prison sentence, U.S. District Judge Jacquelyn D. Austin also imposed a fine of $34,000 on Gallagher.
