Gilmore Tax Evasion Trial Under Way In Federal Court

TRENTON, NJ — The federal tax evasion trial of Ocean County Republican boss George Gilmore has gotten under way this week, according to reports.

Gilmore, 69, was indicted in January on six counts, accused by federal authorities 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, First Assistant U.S. Attorney Rachael A. Honig said. In total, he is accused of evading nearly $1.5 million in taxes and fees.

Gilmore has been the Ocean County Republican party chairman since 1996. He also is head of the Ocean County Board of Elections.

His attorney, Kevin Marino, has tried to argue that Gilmore's failure to pay the taxes was because of a hoarding disorder that involved him collecting a number of expensive items, according to an Asbury Park Press report.

U.S. District Court Judge Anne E. Thompson, however, refused to allow testimony from a psychiatrist who was prepared to say Gilmore's issues stemmed from hoarding, according to a Politico report.

According to the indictment, Gilmore filed federal tax returns on behalf of himself and his wife, Joanne, 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.

Instead, they allege, Gilmore spent more than $2.5 million on personal expenses, including substantial home remodeling costs, vacations, and the acquisition of antiques, artwork, and collectibles from January 2014 to December 2016. 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.

According to the indictment, 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, Gilmore and Monahan, where he is a principal.

In court this week, federal prosecutors said in opening statements that Gilmore told IRS agents that he didn't have the money to pay his income taxes while at the same time spending nearly a half-million on luxury art and antiques, and booked a $25,000 vacation in Vail, Colorado, while ignoring agents' calls, the Asbury Park Press reported. Read more here.

Marino, in his opening statement, argued Gilmore simply made "foolish choices with money," the report said.

Among some of the other purchases, which the Asbury Park Press reported were detailed on Wednesday: a limited-edition bronze statue of George Washington that cost $33,000; his 13,000-square-foot home on the water in Toms River, with custom furniture, an infinity pool and a cabana; and a $20,000 Steinway piano.

The report noted Gilmore's law firm partner, Thomas Monahan, testified that he went without paychecks from the firm when Gilmore said the firm needed the money. Read more here.

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