Ocean County Republican Chairman George R. Gilmore, who is also chairman of the Ocean County Board of Elections, compares signatures to determine the validity of a ballot in November. (Photo: David Gard)Jean Mikle and Erik Larsen report for the Asbury Park PressOcean County Republican Chairman George R. Gilmore has been indicted by a federal grand jury on tax evasion charges,  First Assistant U.S. Attorney Rachael A. Honig said.Gilmore, 69, of Toms River, was charged in a six-count indictment with one count of income tax evasion for the 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, according to the U.S. Attorney’s Office.According to the indictment, Gilmore spent more than $2.5 million on personal expenses from about January 2014 to December 2016, even though he admitted to owing federal taxes for each of those years.

Lt. Gov. Kim Guadagno and Ocean County GOP Chairman George Gilmore. (Photo: Erik Larsen, staff photo)
His purchases included:  $440,000 in antiques, artwork and collectibles, including animal tusks; more than $80,000 for model trains; more than $100,000 for Colorado vacations; over $700,000 for mortgages and related expenses on five different properties he owned, and more than $380,000 for construction and remodeling of his homes, which included a swimming pool, a pool cabana, a slate roof, marble flooring and mahogany and cherry wood fireplace mantels, among other features.During that same time period, Gilmore borrowed more than $1.7 million from professional associates, friends and law firm clients, and also obtained more than $572,000 from the cash-out portion of a home mortgage loan that he refinanced, according to the indictment. Like this? Click to receive free updatesGilmore referred all questions about the indictment to his Chatham-based lawyer, Kevin H. Marino. “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.Also according court documents:

• 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.

From about January 2014 through December 2016,

Gilmore, one of the most powerful Republicans in the state, also serves as chairman of the Ocean County Board of Elections. Read the full storyLike this? Click to receive free updates