Federal Appeals Court upholds conviction of former ocean county law firm partner on tax and loan fraud

 

Date: December 4, 2020

Contact: newsroom@ci.irs.gov

Newark, N.J. – A federal appeals court today upheld the conviction of George Gilmore, a former partner in an Ocean County, New Jersey, law firm, on charges of failing to pay over payroll taxes to the IRS and making false statements in a loan application.

Gilmore of Toms River, New Jersey, a former equity partner and shareholder at Gilmore & Monahan P.A., was convicted in April 2019 on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A. He was sentenced January 22, 2020, to one year and one day in prison.

In the non-precedential ruling written by Judge Thomas Hardiman for a three-judge panel of the U.S. Court of Appeals for the Third Circuit, the court rejected four separate claims raised by Gilmore. It agreed with the government that the trial judge properly excluded expert psychiatric testimony supporting Gilmore's claim that a "hoarding" disorder made him spend lavishly on personal expenses rather than make timely payments to the IRS. Gilmore contended that testimony would have negated his intent to commit the charged tax crimes. The court also rejected Gilmore's challenges to the jury instructions and sufficiency of evidence.

The investigation was conducted by the IRS-Criminal Investigation and FBI.

The government was represented on appeal by Assistant U.S. Attorney Bruce P. Keller of the U.S. Attorney's Office's Special Prosecutions Division and Steven G. Sanders of the Appeals Division.