Gerard Terry sentenced to six months in jail on state tax fraud charges

Janelle Clausen
Gerard Terry, 64, of Roslyn Heights, will be spending three years in prison for federal and state tax fraud charges. (Photo courtesy of the Nassau County District Attorney's office)
Gerard Terry, 64, of Roslyn Heights, will be spending three years in prison for federal and state tax fraud charges. (Photo courtesy of the Nassau County District Attorney's office)

Former North Hempstead Democratic Party leader Gerard Terry was sentenced to six months in jail and five years on probation for state tax fraud charges on Monday afternoon, following his sentencing last week on federal tax fraud charges.

Terry, 64, of Roslyn Heights pleaded guilty on Sept. 25, 2017, to criminal tax fraud in the fourth degree – an E-grade felony.

In addition, acting Supreme Court Justice Christopher Quinn ordered Terry to pay $250,000 in restitution to the state Department of Taxation and Finance.

This sentence will be served concurrently with his federal one.  Federal Judge Joanna Seybert sentenced Terry to 36 months in prison and three years of supervised release for avoiding paying more than $1.6 million in federal and state taxes.

“As a well-connected power player in Nassau politics, this defendant provided legal services to many local governments and was paid generously with taxpayer funds,” Nassau County District Attorney Madeline Singas said. “His repeated failures to pay his own tax obligations are a betrayal of his obligations as a citizen and an attorney, and my office remains committed to prosecuting those who defraud the public, regardless of their party or position.”

Terry, in addition to his tenure as the chairman of the North Hempstead Democratic Party, had held a number of jobs in North Hempstead and Nassau County.

He had served as counsel for the North Hempstead Board of Zoning Appeals and held jobs with the North Hempstead Housing Authority, the villages of Port Washington North and Manorhaven, the Nassau County Board of Elections, the Freeport Community Development Agency, Long Beach Housing Authority and the Roosevelt Public Library.

More than 100 people, ranging from religious leaders to political ones like Congressman Tom Suozzi, had written letters to Seybert outlining his skills, pro bono work and health issues, and urging leniency in the sentencing.

The investigation into Terry’s tax debts began in January 2016 after Newsday reported on tax warrants against Terry.

Nassau County prosecutors said they then found that Terry averaged an annual income between $200,000 and $300,000 since 2000, but regularly failed to pay income taxes. Prosecutors also said they found that Terry did not remit payments due for any of his tax returns and failed to report hundreds of thousands of income in 2013, 2014 and 2015.

Federal prosecutors had sought 54 months of prison time, while Terry’s defense argued in favor of leniency – perhaps in the form of community service – given his impact on communities, cardiovascular condition and other factors.

The sentencing also came after reports that Terry, who was disbarred as an attorney, practiced law in Nassau County District Court on May 2, 2018 – a possible felony.

“In court today, ADA [Diane] Peress stated on the record that at this time, our office will not pursue additional charges related to Terry practicing law after the disbarment,” Miriam Sholder, a spokeswoman for the Nassau County district attorney‘s office, said via email. “I cannot speak for other offices and what they may or may not do.”

Stephen Scaring, Terry’s lawyer, was not immediately available for comment late Monday afternoon.

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