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Gallinghouse also exposed in the middle 1970s what became known as the Great Grain Scandal, which netted seventy-one convictions on fraud charges. Four large grain companies pleaded no contest and paid the maximum fines permitted of $10,000.<ref name=crider/> Dishonest inspectors began asking for modest, undetected kickbacks from the shippers to get grain approved for entry, but as business boomed, some were seeking $5,000 in bribes per ship.<ref>{{cite book|url=http://books.google.com/books?id=PTQQQECdT4QC&pg=PA271&lpg=PA271&dq=Gerald+J.+Gallinghouse+of+New+Orleans&source=bl&ots=eSwuX3dRA9&sig=UYnrfvBwFfCdbsYXUcBRPP-zea4&hl=en&sa=X&ei=tu_OUZHELoTo8gSBlYA4&ved=0CEIQ6AEwBDgK#v=onepage&q=Gerald%20J.%20Gallinghouse%20of%20New%20Orleans&f=false|author=Heinz Dietrich Fischer, ed|title=National Reporting, 1941-1986, Vo. 2 (Labor Conflicts)|page=271|publisher=[[New York City]]: K. G. Saur|accessdate=June 29, 2013}}</ref> As a result of these cases, Congress established a new system of grain inspections. Gallinghouse's work in this case brought favorable comments from [[U.S. Senator]] [[Hubert H. Humphrey]] of [[Minnesota]], the Democrat who had lost the 1968 election to Gallinghouse's patron, Richard Nixon.<ref name=crider/>

Gallinghouse also exposed in the middle 1970s what became known as the Great Grain Scandal, which netted seventy-one convictions on fraud charges. Four large grain companies pleaded no contest and paid the maximum fines permitted of $10,000.<ref name=crider/> Dishonest inspectors began asking for modest, undetected kickbacks from the shippers to get grain approved for entry, but as business boomed, some were seeking $5,000 in bribes per ship.<ref>{{cite book|url=http://books.google.com/books?id=PTQQQECdT4QC&pg=PA271&lpg=PA271&dq=Gerald+J.+Gallinghouse+of+New+Orleans&source=bl&ots=eSwuX3dRA9&sig=UYnrfvBwFfCdbsYXUcBRPP-zea4&hl=en&sa=X&ei=tu_OUZHELoTo8gSBlYA4&ved=0CEIQ6AEwBDgK#v=onepage&q=Gerald%20J.%20Gallinghouse%20of%20New%20Orleans&f=false|author=Heinz Dietrich Fischer, ed|title=National Reporting, 1941-1986, Vo. 2 (Labor Conflicts)|page=271|publisher=[[New York City]]: K. G. Saur|accessdate=June 29, 2013}}</ref> As a result of these cases, Congress established a new system of grain inspections. Gallinghouse's work in this case brought favorable comments from [[U.S. Senator]] [[Hubert H. Humphrey]] of [[Minnesota]], the Democrat who had lost the 1968 election to Gallinghouse's patron, Richard Nixon.<ref name=crider/>

Some of his investigations were stymied after Congress created the new[United States District Court for the Middle District of Louisiana, based in Baton Rouge, in order to reduce the caseload of the Eastern District. The change removed nine parishes, including the largest one, [[Baton Rouge|East Baton Rouge Parish]] from Gallinghouse's jurisdiction. Gallinghouse persuaded the federal district judges to permit him to continue his jurisdiction in those nine parishes on the cases already under investigation. Much of the focus center on East Baton Rouge Parish.<ref name=nosi/>

Some of his investigations were stymied after Congress created the new United States District Court for the Middle District of Louisiana, based in Baton Rouge, in order to reduce the caseload of the Eastern District. The change removed nine parishes, including the largest one, [[Baton Rouge|East Baton Rouge Parish]], from Gallinghouse's jurisdiction. Gallinghouse persuaded the federal district judges to permit him to continue his jurisdiction in those nine parishes on the cases already under investigation. Much of the focus center on East Baton Rouge Parish.<ref name=nosi/>

In September 1980, President [[Jimmy Carter]] invoked the Ethics in Government Act of 1978 to name Gallinghouse as a special prosecutor to investigate reports that Carter's campaign manager and former appointments secretary, Timothy E. Kraft (born 1941), had formerly used [[cocaine]]. In the midst of the race against [[Ronald W. Reagan]], Kraft, who was known in [[Washington, D.C.]], for his flamboyant life-style, stepped down to avoid attention to his own legal troubles.<ref>{{cite news|url=http://www.time.com/time/magazine/article/0,9171,952778,00.html|title="Nation: Kraft Drops Out", September 29, 1980|publisher=''[[Time Magazine]]''|accessdate=June 29, 2013|date=September 29, 1980}}</ref> Gallinghouse cleared Kraft of the allegation. A year earlier, another special prosecutor had similarly cleared Carter's chief of staff, William Hamilton McWhorter Jordan (1994-2008), of the same charge, but in a non-election year, Jordan had not been compelled to resign.<ref>{{cite web|url=http://www.nytimes.com/1984/04/03/us/78-ethics-act-sets-procedure-in-such-cases.html|title='78 Ethics Act Sets Procedure in Such Cases|publisher=''[[The New York Times]]''|accessdate=June 29, 2013|date=April 3, 1984}}</ref>

In September 1980, President [[Jimmy Carter]] invoked the Ethics in Government Act of 1978 to name Gallinghouse as a special prosecutor to investigate reports that Carter's campaign manager and former appointments secretary, Timothy E. Kraft (born 1941), had formerly used [[cocaine]]. In the midst of the race against [[Ronald W. Reagan]], Kraft, who was known in [[Washington, D.C.]], for his flamboyant life-style, stepped down to avoid attention to his own legal troubles.<ref>{{cite news|url=http://www.time.com/time/magazine/article/0,9171,952778,00.html|title="Nation: Kraft Drops Out", September 29, 1980|publisher=''[[Time Magazine]]''|accessdate=June 29, 2013|date=September 29, 1980}}</ref> Gallinghouse cleared Kraft of the allegation. A year earlier, another special prosecutor had similarly cleared Carter's chief of staff, William Hamilton McWhorter Jordan (1994-2008), of the same charge, but in a non-election year, Jordan had not been compelled to resign.<ref>{{cite web|url=http://www.nytimes.com/1984/04/03/us/78-ethics-act-sets-procedure-in-such-cases.html|title='78 Ethics Act Sets Procedure in Such Cases|publisher=''[[The New York Times]]''|accessdate=June 29, 2013|date=April 3, 1984}}</ref>