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Toms River Attorney Charged With Tax Evasion, Failing to Pay Employees Payroll Tax

Lee Gottesman scheduled to appear in federal court today

A Toms River attorney was arrested this morning and charged with tax evasion, according to federal authorities.

Lee Gottesman, 56, of Toms River, was charged by indictment with evading federal income taxes and failing to pay payroll taxes for the employees of his law firm, according to federal authorities.

Gottesman, who has an office on Main Street, was arrested this morning at his home in Toms River by IRS-Criminal Investigators, U.S. Attorney Paul Fishman announced.

The charges are based on the tax years 2006 through 2009, according to federal authorities.

According to a federal indictment unsealed today, Gottesman faces four counts of personal income tax evasion and 15 counts of willful failure to pay payroll taxes.

The alleged evasion is on $440,000 in income, incurring more than $110,000 in income tax liability. Fishman said Gottesman allegedly did not pay any personal income tax for this period, nor did he file any personal tax returns.

"Also during that period, Gottesman employed attorneys and secretaries, withheld payroll and other taxes from the employees’ pay, but never turned these withheld payments over to the IRS, nor did he file the required forms with the IRS," according to a release this morning by Fishman's office.

Problems allegedly began in 2002, Fishman said, when the IRS filed a levy on Gottesman’s assets because of unpaid taxes. He opened a sub account under his wive's name in an attorney trust, though his wife was not a client. Gottesman then began to run substantially all of his personal and business expenses through the sub account, and closed all other business and personal accounts held in his name, federal authorities claim.

Fishman said Gottesman’s payments from the sub account allegedly included:

  • more than $90,000 in mortgage payments for his home;
  • more than $17,000 in household expenses, including maintenance on his pool, landscaping services, and construction costs;
  • and thousands of dollars in other personal expenses, such as life insurance premiums, auto body repair work, and personal credit card payments.

He is scheduled to appear before Magistrate Judge Patty Shwartz in Newark United States District Court 2:15 p.m. today.

Gottesman would face maximum penalty of five years in prison and a $250,000 fine for the four tax evasion counts. Each of the 14 payroll tax counts is
punishable by a maximum potential penalty of five years in prison and a $10,000 fine, Fishman said.

Mr. ? July 20, 2012 at 02:08 PM
From Google: Mr. Gottesman was admitted to the Bar of the State of New Jersey and the United States District Court for the District of New Jersey in 1981, to the Bar of the Supreme Court of the United States in 1992, and to the Bar of the United States Court of Appeals for the Third Circuit in 1997. He is a graduate of Georgetown University in Washington, D.C., and of Case Western Reserve University School of Law in Cleveland, Ohio. He has been an active member of the National Association of Consumer Bankruptcy Attorneys since 1999, and has also been a member of the American Bar Association, the New Jersey State Bar Association, the Ocean County Bar Association, and the Commercial Law League of America. He served as judicial clerk to the Hon. Edwin H. Stern, J.S.C., in the Superior Court of New Jersey, Law Division, Hudson County in 1982" and was a Deputy Attorney General assigned to the New Jersey Division of Gaming Enforcement from 1982 to 1986. In 1986, Mr. Gottesman became associated with the Millburn law firm of Kleinberg, Moroney, Masterson & Schachter (a highly regarded bankruptcy "boutique" firm), where he remained for 2-112 years until relocating to Ocean County, where he established the bankruptcy law department for Gelzer, Kelaher, Shea, Novy & Carr.
riverfest July 20, 2012 at 02:39 PM
mayor kelaher his former partner was heard to say - i didn't know him, but heard he was a nice guy ! any co-incidence since the ritacco raid by f.b.i. and i.r.s. all these republican club attorneys and mayors are being arrested? - gottesman - orlovsky - grasso - inteso - etc, etc, etc, etc -
George M. Lobman July 20, 2012 at 02:56 PM
No matter what the name the law must be charged and the sentence carried out. Everyone of them goes to jail! unless they can point out ten more who have done this or something else !!!
1stcav July 20, 2012 at 04:23 PM
As LONG as Mike is talking, he gets to stay out longer and postpones HIS court date... Get it ! Just hope your not on the " Tag " list ! Rep's ALL are loosing a lot of sleep in T.R. and O.C. these days !!!!! Good Old Boys club is missing some of there members,
Shelly July 20, 2012 at 05:23 PM
They're all slime buckets!!! I've met and worked for many attorneys in my lifetime and I can honestly say that there is only ONE that was not corrupt. How sad!
Ken Able July 20, 2012 at 07:07 PM
How come Mr. Gilmore and his buddy Mr.McGakin were spared for similar offenses? coincidence...I think not!
Mr. ? July 20, 2012 at 09:11 PM
Mr. Gilmore and Mr. McGuckin were delinquent on payin taxes. They use that money to fund other endeavors instead, and pay interest and penalties on back taxes. Legal and a method many professional may use. They do end up paying...and actually more! The back taxes of Mr Gotessman was on income, maybe for a longer time period and eventually the Federal Gov and the IRS and FBI become involved. Payroll taxes are one of the issues that got D'Alonzo nabbed down south in his Wellness Center business when an employee filed a complaint. That is what opened up a can of worms! What kind of worms you ask?
BeachGirl319 July 20, 2012 at 10:50 PM
Sounds like someone is singing like a canary, certain people should be worried.....Or planning well-timed vacations to countries with no extradition treaty lol
Richie Rich July 20, 2012 at 11:47 PM
Politics?
Upset Union Member July 21, 2012 at 03:37 AM
Dont forget steve acropolis; he also has his hand in toms river's cookie jar.
NapalmDawn July 21, 2012 at 03:42 AM
Jeez are you ignorant!!
patg July 21, 2012 at 04:09 AM
some you guys are a mess like this guy had anything to to with the toms river scholl scandle wtf its the guys personal payrole taxs
. July 21, 2012 at 04:27 AM
.....what? Can you try this again in English?
Miriam July 21, 2012 at 11:00 AM
www.lawlessamerica.com Do you have evidence of corruption,or a victim? Would you like to be filmed in the Lawless America movie, and be heard before congress?! This is a once in a life time opportunity! Contact link above for more information!
ILOVEMAYORBARRELLA July 22, 2012 at 07:51 PM
SHOCKING!
Victor Stevens October 19, 2012 at 12:33 PM
Your right Shelly ! did you ever work with Novy ?

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