John George, Embezzlement, Massachusetts 2015

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Former State Rep’s Cash Stash Grows to $2.5 Million

BOSTON, MA – In a shocking revelation, authorities have recovered over $2.5 million in cash and valuables from seven safe deposit boxes controlled by former Massachusetts State Representative John George.

According to officials, the money was tied up in rolls of $100s, $50s, and other denominations. The safe deposit boxes were located at three banks in New Bedford and Fairhaven.

George, 68, was sentenced to 70 months in prison in July 2015 for embezzling hundreds of thousands of dollars from the Southeastern Regional Transit Authority (SRTA). The embezzlement occurred while George owned Union Street Bus Company (USBC), a New Bedford-based company that operated public buses under contract with SRTA.

As part of the conspiracy, George conspired to have USBC employees work at his farm, John George Farms (JG Farm), during their assigned USBC work hours. He also inflated his final yearly salary from $75,000 to $275,000 in an attempt to fraudulently boost his SRTA pension.

In related seizures in December, U.S. Marshals discovered over $1.6 million in cash. Yesterday, special agents with the IRS seized over $800,000 in cash, as well as four Rolex watches and jewelry from three safe deposit boxes controlled by George.

The announcement was made by United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the IRS-Criminal Investigation, and John Gibbons, U.S. Marshal for the District of Massachusetts. The case was investigated by the U.S. Department of Transportation, Office of the Inspector General, and was prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.

George was required to disclose his financial status to the Court prior to his sentencing. At that time, he stated that his liquid assets only consisted of about $160,000 in bank accounts and approximately $28,000 in cash.

The total amount recovered from safe deposit boxes controlled by George now stands at over $2.5 million, with the latest seizures adding over $1 million in cash, jewelry, and luxury watches to the total.

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