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Press Release

Hamden Deli Owner Sentenced to Prison for Tax Evasion

For Immediate Release
U.S. Attorney's Office, District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, announced that RAYMOND GEORGE, 53, of Hamden, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to nine months of imprisonment, followed by one year of supervised release, for tax evasion.  Judge Underhill also ordered George to pay a $5,000 fine.

According to court documents and statements made in court, George owns and operates a Ray & Mike’s, LLC, a delicatessen located at 3030 Whitney Avenue in Hamden.  For the 2012 and 2013 tax years, George evaded payment of his federal income taxes in multiple ways.  First, George failed to deposit all of the cash receipts of the business into his business bank account.  He used a portion of the cash to fill an in-store ATM and failed to report the cash as income.

In addition, George used the Ray & Mike business account to pay personal expenses.  He also deposited three large checks totaling nearly $300,000 from the Ray & Mike’s business account into his personal investment account, without reporting the funds as income in any capacity, and then withdrew funds from the investment account to purchase personal investment properties.  He also deposited a $25,800 check from the Ray & Mike’s lottery account into his personal investment account without reporting the funds as income.

On his federal tax returns, George underreported his income by approximately $365,065 for the 2012 tax year and by $273,108 for the 2013 tax year, and failed to pay a total of approximately $220,000 in taxes for those two years.

George has paid the IRS approximately $480,000 in back taxes, interest and penalties.

On May 17, 2019, George pleaded guilty to one count of tax evasion.

George, who is released on a $100,000 bond, is required to report to prison on March 17, 2020.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Michael S. McGarry with the assistance of Law Student Intern Virginia Manoyan.

Updated September 17, 2019

Topic
Tax