Financial Fraud: George Gilmore Tax Evasion, Filing False Tax Returns, Failing to Pay Over Payroll Taxes

&NewLine;<h2 class&equals;"wp-block-heading">Ocean County Attorney Charged with Tax Evasion&comma; Filing False Tax Returns&comma; Failing to Pay Over Payroll Taxes&comma; and Making False Statements on Loan Application<&sol;h2>&NewLine;&NewLine;&NewLine;&NewLine;<p>TRENTON&comma; N&period;J&period; – A federal grand jury today indicted a partner at an Ocean County law firm for evasion of taxes totaling more than &dollar;1 million&semi; filing false income tax returns&semi; failing to pay over payroll taxes to the IRS&semi; and making false statements on a bank loan application&comma; First Assistant U&period;S&period; Attorney Rachael A&period; Honig announced&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<div class&equals;"mh-content-ad"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js&quest;client&equals;ca-pub-9162800720558968"&NewLine; crossorigin&equals;"anonymous"><&sol;script>&NewLine;<ins class&equals;"adsbygoogle"&NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;"&NewLine; data-ad-layout&equals;"in-article"&NewLine; data-ad-format&equals;"fluid"&NewLine; data-ad-client&equals;"ca-pub-9162800720558968"&NewLine; data-ad-slot&equals;"1081854981"><&sol;ins>&NewLine;<script>&NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi;&NewLine;<&sol;script><&sol;div>&NewLine;<p>George Gilmore&comma; 69&comma; of Toms River&comma; New Jersey&comma; was charged in a six-count indictment with one count of income tax evasion for calendar years 2013&comma; 2014&comma; and 2015&semi; two counts of filing false tax returns for calendar years 2013 and 2014&semi; failing to collect&comma; account for&comma; and pay over payroll taxes for two quarters in 2016&comma; and making false statements on a 2015 loan application submitted to Ocean First Bank N&period;A&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>According to documents filed in this case&colon;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Gilmore worked as an equity partner and shareholder at Gilmore &amp&semi; Monahan P&period;A&period;&comma; a law firm in Toms River&comma; where he exercised primary control over the firm’s <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;tag&sol;financial-fraud&sol;amp&sol;" title&equals;"financial" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"902">financial<&sol;a> affairs&period; Gilmore filed on behalf of himself and his spouse federal income tax returns declaring that he owed &dollar;493&comma;526 for calendar year 2013&comma; &dollar;321&comma;470 for 2014&comma; and &dollar;311&comma;287 for 2015&period; Despite admitting that he owed taxes for each of these years&comma; Gilmore made no estimated tax payments and failed to pay the federal individual income taxes that he owed&period; Rather&comma; between January 2014 and December 2016&comma; Gilmore spent more than &dollar;2&period;5 million on personal expenses&comma; including substantial home remodeling costs&comma; vacations&comma; and the acquisition of antiques&comma; artwork&comma; and collectibles&period; By Dec&period; 31&comma; 2016&comma; based on the tax due and owing that Gilmore reported on the returns&comma; he owed the IRS &dollar;1&comma;520&comma;329 in taxes&comma; penalties&comma; and interest&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>To evade and defeat the payment of his taxes Gilmore concealed information from the IRS and falsely classified income&comma; made false and misleading statements to IRS personnel&comma; and filed false tax returns that materially understated the true amount of income that he received from the law firm&colon;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>From January 2014 to December 2016&comma; Gilmore used the law firm’s bank accounts to pay more than &dollar;2 million worth of personal expenses&comma; including obtaining checks to cash and cash advances on a corporate credit card&period; Gilmore falsely classified payments as &OpenCurlyDoubleQuote;shareholder loans” instead of income to him&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>On Oct&period; 16&comma; 2014&comma; Gilmore sent the IRS a &dollar;493&comma;526 check as payment for his 2013 taxes despite having no more than &dollar;2&comma;500 in his personal bank account at the time&period; Gilmore’s check bounced and he never resubmitted payment in lieu of the bounced check&period; From November 2014&comma; when he was notified by the IRS concerning the bounced check&comma; to the end of December 2014&comma; Gilmore spent more than &dollar;80&comma;000 toward the construction of his home and to purchase artwork&comma; antiques&comma; and collectibles and more than &dollar;25&comma;000 in mortgages and related expenses for five real estate properties that he owed&period;<br>&NewLine;From November 2014 to October 2015&comma; Gilmore falsely represented to the IRS collections officer that he would make partial payments to the IRS for his outstanding tax liability&comma; but made none&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Gilmore filed false tax returns for 2013 and 2014&comma; which under reported his actual income from the law firm&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Because he exercised significant control over the law firm’s financial affairs&comma; Gilmore was a person responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income&comma; Social Security and Medicare tax obligations&period; For the tax quarters ending March 31&comma; 2016&comma; and June 30&comma; 2016&comma; the law firm withheld tax payments from its employees’ checks&comma; but Gilmore failed to pay over in full the payroll taxes due to the IRS&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Gilmore also submitted a <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;loans&sol;amp&sol;" title&equals;"loan" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"298">loan<&sol;a> application to Ocean First Bank containing false statements&period; On Nov&period; 21&comma; 2014&comma; Gilmore reviewed&comma; signed&comma; and submitted to Ocean First Bank a Uniform Residential Loan Application &lpar;URLA&rpar; to obtain refinancing of a <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;mortgage&sol;amp&sol;" title&equals;"mortgage" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"134">mortgage<&sol;a> loan for &dollar;1&period;5 million with a &OpenCurlyDoubleQuote;cash out” provision that provided Gilmore would obtain cash from the loan&period; On Jan&period; 22&comma; 2015&comma; Gilmore submitted another URLA updating the initial application&period; Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs&period; Gilmore received &dollar;572&comma;000 from the cash out portion of the loan&comma; the proceeds of which he did not apply to his unpaid taxes&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The tax evasion count and the two counts of failing to collect&comma; account for&comma; and pay over payroll taxes each carry a maximum penalty of five years in prison&comma; and a &dollar;250&comma;000 fine&comma; or twice the gross gain or loss from the offense&period; The two counts of filing a false tax return each carry a maximum penalty of three years in prison&comma; and a &dollar;250&comma;000 fine&comma; or twice the gross gain or loss from the offense&period; The count alleging loan application fraud carries a maximum penalty of 30 years in prison and a &dollar;1 million fine&period; Gilmore will be arraigned at a date to be determined&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>First Assistant U&period;S&period; Attorney Honig credited special agents of IRS-Criminal Investigation&comma; under the direction of Special Agent in Charge John R&period; Tafur&comma; special agents with U&period;S&period; Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney&comma; and special agents of the FBI Red Bank Resident Agency&comma; under the direction of Special Agent in Charge Gregory W&period; Ehrie in Newark&comma; for the investigation leading to today’s indictment&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The government is represented by Deputy U&period;S&period; Attorney Matthew J&period; Skahill&semi; Assistant U&period;S&period; Attorney Jihee G&period; Suh of the U&period;S&period; Attorney’s Office Special Prosecutions Division&semi; and Trial Attorney Thomas F&period; Koelbl of the U&period;S&period; Department of Justice &&num;8211&semi; Tax Division&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The charges and allegations in the indictment are merely accusations&comma; and Gilmore is considered innocent unless and until proven guilty&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p><strong>You can read more&colon;<&sol;strong><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<ul class&equals;"wp-block-list">&NewLine;<li><a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-raymond-e-gallison-pleads-guilty-to-federal-fraud-aggravated-identity-theft-tax-charges&sol;amp&sol;">Financial Fraud&colon; Raymond E&period; Gallison Pleads Guilty to Federal Fraud&comma; Aggravated Identity Theft&comma; Tax Charges<&sol;a><&sol;li>&NewLine;&NewLine;&NewLine;&NewLine;<li><a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;tax-credit-fraud-khalid-farid-a-self-employed-property-investor-has-been-jailed&sol;amp&sol;">Tax Credit Fraud&colon; Khalid Farid A Self-Employed Property Investor Has Been Jailed<&sol;a><&sol;li>&NewLine;&NewLine;&NewLine;&NewLine;<li><a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-jason-laut-charged-for-wire-fraud-false-statements-and-two-counts-of-identity-theft&sol;amp&sol;">Financial Fraud&colon; Jason Laut Charged For Wire Fraud&comma; False Statements And Two Counts of Identity Theft<&sol;a><&sol;li>&NewLine;&NewLine;&NewLine;&NewLine;<li><a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-fraud-angiodynamics-to-pay-the-company-caused-healthcare-providers-to-submit-false-claims-to-medicare&sol;amp&sol;">Financial Fraud&colon; AngioDynamics to Pay The Company Caused Healthcare Providers to Submit False Claims to Medicare<&sol;a><&sol;li>&NewLine;&NewLine;&NewLine;&NewLine;<li><a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-and-tax-fraud-christopher-a-jansen-president-of-baytree-investors-inc-charges-of-wire-fraud-and-evading-income-taxes&sol;amp&sol;">Financial And Tax Fraud&colon; CHRISTOPHER A&period; JANSEN &&num;8211&semi; President of Baytree Investors Inc&period; &&num;8211&semi; Charges of Wire Fraud And Evading Income Taxes<&sol;a><&sol;li>&NewLine;<&sol;ul>&NewLine;&NewLine;&NewLine;&NewLine;<p><&sol;p>&NewLine;

Financial FraudTax EvasionTax Fraud