A federal grand jury has indicted an Ocean County lawyer and prominent Republican on a series of tax charges stemming from an alleged $1 million in unpaid taxes, filing false income tax returns, failing to pay payroll taxes to the IRS, and making false statements on a bank loan application.
On Jan. 10, George Gilmore, 69, of Toms River, 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, the U.S. Attorney’s Office for the District of New Jersey said.
Gilmore, a partner at Gilmore & Monahan in Toms River, was in charge of the firm’s finances as well as his spouse’s and his own taxes from the relevant time frame of 2013 to 2016, according to prosecutors.
He is also the longtime chairman of the Ocean County Republican Organization.
“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,” according to an official statement from the U.S. Attorney’s Office. “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.”
Gilmore’s lawyer, Kevin H. Marino, did not return a call seeking comment.
Prosecutors allege Gilmore used his 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. They claim Gilmore falsely classified payments as shareholder loans instead of personal income.
Gilmore is also accused of writing several bounced checks to cover his tax debts while simultaneously spending tens of thousands of dollars on mortgages, real estate, and collectibles.
Prosecutors also claim that Gilmore falsely told the IRS that he would make partial payments on any outstanding debts and that he filed false tax returns.
Additionally, Gilmore allegedly withheld employees’ taxes from their checks, but failed to pay over in full the payroll taxes due to the IRS. He is also accused of filing a false loan application 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. Gilmore allegedly received $572,000 from the cash-out portion of the loan, but did not report the income to the IRS.