By Nick Slater
In its sentencing memorandum, the government asked Chief Judge Stefan R. Underhill to impose a period of incarceration on Ray George, who pleaded guilty to tax evasion in May.
George is facing between 12 and 18 months in prison, a fine between $5,000 and $55,000 and up to three years of supervised release, according to the memorandum.
The government’s request is that George receives a period of incarceration of up to 15 months. Additionally, the government is asking that George pays full restitution for the taxes he failed to report in addition to a period of supervised release after prison.
“George’s crime was certainly not a crime borne of necessity,” the prosecutors wrote in the government sentencing memorandum.
George, 53, pleaded guilty to tax evasion in May. The deli owner could be facing over a year in prison after failing to report $638,170 in earnings.
The government pointed out in the memorandum that the Ray & Mike’s owner is a multi-millionaire with an investment portfolio worth over $3 million. George’s real-estate and rental holdings are worth over $1.7 million. Ray & Mike’s Deli was also valued at over $500,000, according to the memorandum.
The memorandum also states that George’s net worth is $4.3 million. The government uses all of these figures to demonstrate how George’s “scheme” was deliberate and not borne of the need for cash.
The government argues in the memorandum, that a prison sentence for George would not cause Ray & Mike’s to close. The prosecutors suggest that George could make arrangements to keep the deli open.
These suggestions include hiring new employees to act as managers or promoting a current employee to act as a manager. Either of these options, according to the government, could be paid for by George’s $240,000 salary.
The government uses the extended duration of George’s offense as grounds for incarceration.
“[George’s] crime was not one of limited duration,” the memorandum states.
During the 2012 and 2013 tax years, George failed to report $638,170, according to the memorandum, which resulted in a tax loss of $220,663.
“If tax evaders were to face no real incarceration, then criminal tax fraud would amount to basically a loan from the Government,” the prosecutors wrote.
George is scheduled to be sentenced Sept. 17. Stay with HQ Press for updates on George’s sentence.