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CT Deli Owner Sentenced To Prison For Tax Evasion

Ray & Mikes in Hamden, Connecticut.
Ray & Mikes in Hamden, Connecticut. Photo Credit: Google Maps

A deli owner in Connecticut is heading to prison after admitting to a tax evasion scheme that saw him daily to pay the government hundreds of thousands of dollars.

Hamden resident Raymond George, 53, who owns and operates Ray & Mike’s on Whitney Avenue, has been sentenced to nine months in prison, followed by one year of supervised release after pleading guilty to tax evasion in Bridgeport district court.

George was also ordered to pay a $5,000 fine. He has also paid the IRS approximately $480,000 in back taxes, interest and penalties.

In 2012 and 2013, George evaded payment of his federal income taxes in a variety of ways, U.S. Attorney John Durham said. He failed to deposit all of the cash receipts from his business into its bank account, and then used a portion of that cash to fill an in-store ATM and never reported the cash as income.

Durham said that George also used his deli’s business account to pay for personal expenses. He deposited three checks totaling nearly $300,000 from the Ray & Mike’s business account into his own investment account without reporting the money. He then withdrew funds from the investment account to purchase several properties.

George also admitted to depositing a $25,800 check from the Ray & Mike’s lottery account into his personal account without reporting it.

According to Durham, 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.

George remains released on a $100,000 bond. He has been required to report to prison on March 17 next year.

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