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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of New York

Thursday, October 12, 2017

Former Chairman of the North Hempstead Democratic Party and Nassau County Board of Elections Pleads Guilty to Tax Evasion

Gerard Terry, a Licensed Attorney, Failed to Pay Nearly $1 Million in Taxes

Earlier today at the federal courthouse in Central Islip, Gerard Terry pleaded guilty to one count of tax evasion for the tax years 2000 through 2015 in the amount of $992,057.  The proceeding took place before United States District Judge Joanna Seybert. When he is sentenced, Terry faces a maximum of five years’ imprisonment, a fine of up to $100,000 and mandatory restitution to the Internal Revenue Service.

The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).

According to court filings and facts presented during the plea proceedings, Terry, an attorney licensed to practice in New York State, attempted to evade substantial income tax due and owed by him, even though he earned income from numerous government and quasi-government positions in Nassau County, including the Democratic Party in the town of North Hempstead, the Nassau County Board of Elections, the Town of North Hempstead, the Long Beach Housing Authority, the North Hempstead Housing Authority, the Freeport Community Development Agency, the Roosevelt Public Library, the Village of Port Washington, and the Village of Manorhaven.  Since January 2000, despite earning over $250,000 per year, Terry has failed to pay a federal tax debt of over $1.4 million which includes additional fees, interest and penalties. 

During the period charged in the indictment, Terry routinely failed to file personal Form 1040 tax returns, filing years later and only after vigorous pursuit by the IRS.  Even then, Terry filed Forms 1040 that contained false information and failed to report income.  Moreover, Terry has still failed to file returns for tax years 2009 and 2010.  Terry also evaded the IRS’s attempts at levy collection by cashing hundreds of wage and compensation checks worth over $500,000, rather than depositing them into checking or savings accounts where they could be seized.  When depositing those checks into his bank account, Terry did so in the minimum amounts necessary to cover checks and payments for his own personal expenses and luxury items, thereby making sure there were insufficient funds upon which the IRS could levy.  In his communications with the IRS, Terry routinely provided false, misleading and incomplete information to obstruct internal revenue laws.  For example, Terry created and utilized a checking account in the name of a corporate nominee so as to conceal income and avoid levy collection.  Additionally, Terry had one of his employers make direct payments to his credit card rather than issuing him a paycheck, allegedly to avoid levy collection by the IRS.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorney Artie McConnell is in charge of the prosecution.

The Defendant:

Age: 62 
Residence: Roslyn, New York

E.D.N.Y. Docket No. 17-CR-37 (JS)

John Marzulli Tyler Daniels United States Attorney’s Office (718) 254-6323
Updated October 12, 2017