GloucesterTimes.com, Gloucester, MA

January 29, 2013

Feds quiet on house raid in Rockport

By James Niedzinski
Staff Writer

---- — ROCKPORT — Internal Revenue Service and Drug Enforcement Administration agents carried out a search of a Warren Court residence on Saturday that lasted several hours, neighbors confirmed Monday.

But federal and local officials were quiet as to what the agents were seeking or may have seized in the raid.

According to town assessors’ records, the house on 1 Warren Court house is owned by Daniel H. George Jr.

Matthew Pierce, a neighbor who was home at the time of the raid, said law enforcement agents first showed up around 8 a.m., and where there several hours.

”Within an hour, they were everywhere,” he said.

Department of Justice spokeswoman Christina Sterling said she could only confirm Monday the address of 1 Warren Ct. and said an investigation is ongoing. She confirmed that no one was arrested.

Court documents obtained by the Times on Monday reveal that George was convicted on four counts of tax evasion in the past. George, also known as Dan West, was first charged with four counts of tax evasion and four counts of using a false social security number in 2003, where he was indicted by a Grand Jury.

According to court documents, George is a self described chemist who operated a business manufacturing, selling and analyzing ingredients used in nutritional supplements. George is listed as the sole director of a company called Biogenesis, and transferred millions of dollars into Biogenesis accounts around the time of his indictment in 2003.

Calls by the Times to a number listed for a “Dan West” at 1 Warren Court were not answered and not returned Monday. No phone number or website could be found for Biogenesis on Monday.

Records show that, from 1996 to 1999, George deposited more than $460,000 in business receipts into different bank accounts and more than $470,000 in interest from those accounts, according to his 2003 indictment. Additionally, George instructed his customers checks were made payable to Dan West, his alias.

George alleged he did not receive payment during this time, money received was gifts or donations from benefactors to support his research. After lengthy court proceedings, he was convicted and sentenced in 2006, but appealed the same year.

In a court document dated in May of 2006, his appeal was denied. During the hearings, several of George’s clients were called upon to testify what they had paid for or what services used. On witness testified George increased the price of one of his products nine-fold when it achieved commercial success.

“The defense painted George as a reclusive and eccentric genius, emphasizing that he lived as a pauper in a small house supported only by Social Security disability payments of approximately $9,000 a year,” the document reads.

In a final decision, he was sentenced a 30-month sentence in Fort Devens correctional facility in 2006, and assessed a $20,000 fine, while IRS officials determined that, from 1995 to 2002, George owed about $2,222,715 in backed taxes. Later, George’s attorneys filed to amend the conditions of his supervised release in 2010.

George was ordered to cooperate with the IRS, make all financial information available to the IRS and make a good faith effort to pay all delinquent and additional taxes, interest and penalties.

He violated the terms of his release after failing to pay any part of the fine.

A memorandum regarding George’s violation in the terms of his release states George, by his own admission, formed a nonprofit corporation called Biogenesis Foundation Inc.

Another court document shows George was charged with conspiracy to possess and intent to distribute MDA, a psychedelic drug, conspiracy to possess and intent to distribute amphetamine, conspiracy to manufacture MDA and conspiracy to manufacture amphetamine in 1985.

James Niedzinski can be reached at 978-283-7000, x 3455 or at jniedzinski@gloucestertimes.com.