Ocean County GOP Chairman Indicted For Tax Evasion And Other Charges

George Gilmore

George Gilmore, the long time chairman of the Ocean County Republican Party, was indicted by a federal grand jury, First Assistant U.S. Attorney Rachael A. Honig announced this afternoon.

Gilmore, 69, is  an attorney, lobbyist and one of the most powerful Republicans in New Jersey. He was was charged in a six-count indictment with one count of income tax evasion for calendar years 2013, 2014, and 2015; two counts of filing false tax returns for calendar years 2013 and 2014; failing to collect, account for, and pay over payroll taxes for two quarters in 2016, and making false statements on a 2015 loan application submitted to Ocean First Bank N.A.

According to Honig’s announcement, documents file in the case indicate:

Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Gilmore filed on behalf of himself and his spouse federal income tax returns declaring that he owed $493,526 for calendar year 2013, $321,470 for 2014, and $311,287 for 2015. Despite admitting that he owed taxes for each of these years, Gilmore made no estimated tax payments and failed to pay the federal individual income taxes that he owed. Rather, between January 2014 and December 2016, Gilmore spent more than $2.5 million on personal expenses, including substantial home remodeling costs, vacations, and the acquisition of antiques, artwork, and collectibles. By Dec. 31, 2016, based on the tax due and owing that Gilmore reported on the returns, he owed the IRS $1,520,329 in taxes, penalties, and interest.

To evade and defeat the payment of his taxes Gilmore concealed information from the IRS and falsely classified income, made false and misleading statements to IRS personnel, and filed false tax returns that materially understated the true amount of income that he received from the law firm:

• From January 2014 to December 2016, Gilmore used the law firm’s bank accounts to pay more than $2 million worth of personal expenses, including obtaining checks to cash and cash advances on a corporate credit card. Gilmore falsely classified payments as “shareholder loans” instead of income to him.

On Oct. 16, 2014, Gilmore sent the IRS a $493,526 check as payment for his 2013 taxes despite having no more than $2,500 in his personal bank account at the time. Gilmore’s check bounced and he never resubmitted payment in lieu of the bounced check. From November 2014, when he was notified by the IRS concerning the bounced check, to the end of December 2014, Gilmore spent more than $80,000 toward the construction of his home and to purchase artwork, antiques, and collectibles and more than $25,000 in mortgages and related expenses for five real estate properties that he owed.

• From November 2014 to October 2015, Gilmore falsely represented to the IRS collections officer that he would make partial payments to the IRS for his outstanding tax liability, but made none.

• Gilmore filed false tax returns for 2013 and 2014, which under reported his actual income from the law firm.

Because he exercised significant control over the law firm’s financial affairs, 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, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.

Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan, the proceeds of which he did not apply to his unpaid taxes.

The tax evasion count and the two counts of failing to collect, account for, and pay over payroll taxes each carry a maximum penalty of five years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The two counts of filing a false tax return each carry a maximum penalty of three years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The count alleging loan application fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Gilmore will be arraigned at a date to be determined.

Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, for the investigation leading to today’s indictment.

The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice – Tax Division.

Gilmore is represented by Kevin H. Marino Esq., Chatham, New Jersey.

Marino the following statement, according to app.com:

“After serving grand jury subpoenas seeking evidence of political corruption on every town with which Mr. Gilmore conducts business—literally for years—the United States Attorney’s Office could manage only this lame, ersatz tax case,” Marino said.

“George Gilmore faithfully reported every penny of his income, repeatedly expressed his intention to pay his taxes together with interest and penalties, freely conceded that he was unable to pay his taxes in a timely fashion, and shared with the government the reasons why,” Marino said.

Posted: January 10th, 2019 | Author: | Filed under: New Jersey, News | Tags: , , , | 10 Comments »

10 Comments on “Ocean County GOP Chairman Indicted For Tax Evasion And Other Charges”

  1. Oh no, said at 9:02 pm on January 10th, 2019:

    was thinking Ocean would be the last NJ county to finally fall Dem.. our demographics are chipping away at us, but they will now suffer as a party, because of this.. why can’t wealthy and successful people just pay their blasted taxes??

  2. You obviously said at 11:24 am on January 11th, 2019:

    do not live there if you think this will even make a dent in the Ocean County GOP machine. The area will never go Dem simply based upon their demographics.

  3. Don’t be too sure. said at 3:20 pm on January 11th, 2019:

    We have seen many formerly solid towns go downhill for various reasons. Hope the supporting organizations keep them in the depleting NJ Republican winning column.

  4. Like the poster said said at 9:20 pm on January 11th, 2019:

    you do not live in Ocean County, lol.

  5. Ok, just watch: said at 4:57 pm on January 12th, 2019:

    South Jersey’s Norcross machine will start inching up: they have the numbers and the money.. one of the main reasons Ocean has largely escaped many of the electoral onslaughts, is the fact that the poison APPress doesn’t circulate in that whole county.. if you haven’t noticed, we only have about one third of the 21 county majorities, now, and one Congressman out of 12, and the lowest number of legislative seats in decades.. just sayin’ .. much to be done!..

  6. Norcross will have no said at 8:10 pm on January 12th, 2019:

    influence or effect any change whatsoever in LD4. You really think the APP not circulating in the whole county is the reason it is so red? What planet do you live on?

  7. Planet Real. said at 9:05 pm on January 12th, 2019:

    Planet Statistical Results, over years. Go ahead and be arrogant. I actually well remember when we actually had a governor, a state party that remembered and rewarded hard work and winning results, and had more than half the counties,( like Bergen and heavily, dependably Morris, (- when they needed a fast 5,000 for a Bush rally, we’d run up to the Morris green, etc.) and, a legislative majority.( yes, quite a long time ago.) Go ahead and be blind to the creeping socialism we see more each year- am headed south ASAP, to try and hold it off, for a few more years..be the last one out, to turn out the lights!

  8. Here we go again said at 9:56 am on January 13th, 2019:

    Please list the statistics that show Ocean County is headed in any direction opposite of red. Also, just for shits and giggles, cite your sources. Or you know just keep typing the same generalized sky-is-falling nonsense because that makes you feel better. I’ll wait.

  9. How about said at 6:19 pm on January 13th, 2019:

    Formerly R Brick? How about losing all congressmen but Smith? You want to not look at the governing body losses in several places, don’t. Arrogance and blinders on do not mask how more blue the whole state becomes, each year. Hope you are a smart consultant that can go on down there to help stop the bleeding, no matter how this latest kerfuffle turns out. Demographics, voter registrations of felons, and the next round of re- districting,( which usually does not lean our way,) do not make for continual Rep successes.

  10. Brick said at 8:52 pm on January 13th, 2019:

    is actually financially stable. They avoided the layoff of dozens of cops a few years back and actually paid an overall lower rate than other Ocean County towns and most of New Jersey. I get your point though, they’re not Republican led, they are headed for disaster.