TRENTON — Former Ocean County Republican Chairman George Gilmore was sentenced to 366 days in prison and three years probation Wednesday. He will serve his sentence in a federal prison that has not been named yet.
Gilmore, who controlled the state’s most powerful Republican organization for more than 20 years, was convicted on federal tax charges last year according to a statement by First Assistant U.S. Attorney Rachael A. Honig.
A jury found Gilmore was guilty of failing to file employee payroll taxes and of making false statements on a bank loan application.
It found him not guilty of charges that claimed he filed false tax returns and did not return a verdict on tax evasion charges.
During Gilmore’s trial, his defense team claimed he failed to pay taxes because of a hoarding disorder.
The Federal Court in Trenton released the following, more detailed earlier today.
On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
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. Because he exercised significant control over the law firm’s financial affairs, Gilmore was 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.
In addition to the prison term, Judge Thompson sentenced Gilmore to three years of supervised release.
First Assistant U.S. Attorney 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, with the investigation leading to today’s sentencing.