Dr. Robert Gorrell Jr. Pleads Guilty to $148K Tax Evasion

Dr. Robert Gorrell Jr., 66, of Wayne County, Pennsylvania, stood before U.S. District Judge Malachy E. Mannion in Scranton today and admitted to a calculated scheme to dodge $148,000 in federal income taxes. The former surgeon at Wayne Memorial Hospital in Honesdale pleaded guilty to tax evasion, marking the end of a federal investigation into years of financial deception.

According to U.S. Attorney Bruce D. Brandler, Gorrell orchestrated a multiyear fraud that relied on lies, forged documents, and hidden assets. He directed his tax preparer to file false Form 1040 returns and Form 433-A financial statements claiming he paid for his own medical malpractice insurance — a claim backed by phony paperwork forged from Wayne Memorial Hospital and an insurance provider.

The deception didn’t stop at paperwork. Gorrell concealed critical financial information from the IRS, including bank accounts under his control and his ownership of a Porsche Cayenne. These assets were deliberately withheld to obstruct collection efforts and paint a false picture of financial hardship.

The IRS Criminal Investigation Division led the probe, peeling back layers of falsified records and shell statements. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case, which exposed a pattern of manipulation designed to exploit the tax system while shielding personal wealth.

Under federal law, Gorrell faces up to five years in prison, a term of supervised release, and a substantial fine. The actual sentence will be determined by Judge Mannion after reviewing federal sentencing guidelines, the severity of the offense, and Gorrell’s personal history. The maximum penalty is not necessarily the sentence he will receive.

The case underscores how even professionals sworn to heal can betray public trust for personal gain. As the federal system moves toward sentencing, one truth remains: hiding from the IRS is a crime that catches up — no matter the scrubs you once wore.