Jason Galanis, dubbed “Porn’s New King” in 2004 for his investments in internet porn technology, pleaded guilty Thursday to manipulating shares of publicly traded company Gerova Financial — one day after his 73-year-old dad copped a plea in the same case.
“I knew the conduct was not correct. I wasn’t aware of statutes, but I knew the behavior was incorrect, possibly illegal,” Galanis, 46, told a Manhattan federal judge.
On Wednesday, his dad, John “Yanni” Galanis, pleaded guilty to creating false demand for Gerova’s stock by bribing investment advisers to purchase it for their clients.
The dad’s lawyer said he admitted guilt to protect another son, Jared, who was charged in the same complaint along with a third son, Derek.
“The reason Mr. Galanis took the plea is because, to defend himself, he would have to inculpate Jared Galanis,” lawyer David Touger told reporters.
The Galanis family has become a fixture in Manhattan federal court, where they are facing two criminal cases filed within months of each other.
In addition to the Gerova Financial case, Jason Galanis and his father face fraud charges brought in by Manhattan US Attorney Preet Bharara in May over bonds they sold to impoverished Native American tribes.
This is the second go-round in Manhattan federal court for the elder Galanis, who was dubbed “a career white-collar criminal” by Rudy Giuliani in the 1980s. As Manhattan US attorney, Giuliani charged Galanis with stealing more than $115 million from investors in a tax-shelter scam that allegedly lured celebrity victims like Dan Aykroyd and Eddie Murphy.
Galanis was sentenced to 27 years in prison in 1988 but was released in 2001.