May 19, 2004

PRESS RELEASE

ROCKPORT MAN CONVICTED
BY FEDERAL JURY OF TAX EVASION

Boston, MA... A Rockport man was convicted yesterday afternoon in federal court following a six day trial on charges of having evaded federal income taxes owed on more than $940,000 in unreported business and interest income received during the years 1996 to 1999.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge, of the U.S. Internal Revenue Service, Criminal Investigation, announced that DANIEL H. GEORGE, JR., age 56, of 1 Warren Court in Rockport, was convicted by a jury sitting before U.S. District Judge Patti B. Saris on four counts of tax evasion.

Evidence presented during the trial proved that GEORGE owned and operated a business manufacturing, selling and analyzing mineral and herbal products and other ingredients used to make nutritional supplements. GEORGE earned more than $460,000 in gross income from his business during the years 1996, 1997, 1998 and 1999. Over the same time period, GEORGE earned over $470,000 in interest income on various Massachusetts bank accounts that he maintained. Notwithstanding this substantial income, GEORGE filed no tax returns, reported none of his income, and paid no taxes on it. Instead, GEORGE took affirmative acts to conceal his income. Those acts included depositing the income into bank accounts that GEORGE opened using false social security numbers and making false statements to IRS agents who interviewed him concerning the funds in his accounts.

Judge Saris scheduled sentencing for September 10, 2004. GEORGE faces up to 5 years' imprisonment and a fine of up to $250,000 on each of the indictment's four counts.

The case was investigated by the Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan's Economic Crimes Unit.

Press contact: Samantha Martin, (617) 748-3139