A North Tonawanda businessman has been sentenced to four years of probation for engaging in a tax evasion scheme that amounted to over $3 million, as announced by the U.S. Attorney's office. George Ward, 57, operated a fire protection and inspection business in Amherst from 2015 to 2020. During this period, he deliberately evaded his tax obligations by failing to file personal income tax returns and neglecting to pay income, social security, and Medicare taxes that were withheld from his employees' paychecks. As a result, the Internal Revenue Service (IRS) suffered a significant tax loss of $953,793. Ward also failed to file taxes with the New York Department of Taxes and Finance, resulting in an additional loss of $165,645.
In addition to these offenses, Ward further compounded his illegal activities by providing false statements to an IRS revenue officer regarding his tax filings and the status of his business. To conceal his actions, he utilized a check cashing business to process over $2 million in gross receipt checks from customers, instead of depositing them into his business' legitimate bank account. Furthermore, he deposited cash from the business into a bank account under his wife's name, further obscuring the true nature of his financial transactions. Consequently, Ward was convicted of tax evasion.
As part of his sentencing, Ward has been ordered to make restitution payments totaling $2,635,542.666 to the IRS and $646,770 to the state. In addition, the terms of his probation include six months of home incarceration followed by six months of home detention.
The case serves as a stark reminder that tax evasion carries severe consequences. The U.S. Attorney's office, in collaboration with the IRS, remains committed to upholding the integrity of the tax system and ensuring that individuals who engage in fraudulent activities are held accountable for their actions.