Gerard Terry leaves Central Islip federal court after a hearing...

Gerard Terry leaves Central Islip federal court after a hearing on Monday, April 17, 2017 where prosecutors and defense attorneys said they are in talks to resolve his tax evasion and IRS-obstruction case. Credit: Joseph D. Sullivan

A defense attorney and a federal prosecutor said Monday they were engaged in discussions to resolve the case of Gerard Terry, a former power in the North Hempstead Democratic Party facing federal charges of income-tax evasion and obstruction of the Internal Revenue Service.

But neither Eastern District prosecutor Artie McConnell, nor Terry’s defense attorney, Stephen Scaring, of Garden City, said in Central Islip federal court at what stage such discussions might be.

Terry, then 62, of Roslyn Heights, was arrested in January by federal agents and accused in connection with a complicated scheme to avoid paying more than $1.4 million in federal taxes since 2000, although he was earning more than $250,000-a-year from numerous public positions, according to then-Eastern District United States Attorney Robert Capers.

Terry pleaded not guilty after his arrest.

McConnell previously has said in court documents that Terry is also being investigated for “kickback, bid rigging and other procurement fraud schemes in Nassau County.”

Terry has not been charged with any of those crimes.

He resigned or was fired from various public jobs last year after Newsday reported he owed nearly $1.4 million in federal and state taxes.

After the Newsday story, the Nassau County District Attorney’s office charged Terry with eight counts of fraud involving state income taxes. Terry has pleaded not guilty to those charges.

In the federal case, U.S. District Judge Joanna Seybert released Terry after initially agreeing with prosecutors that he was a possible danger to the community and a flight risk. The judge ordered Terry confined to his home and monitored by an electronic bracelet.

Seybert ended Terry’s confinement and monitoring after Scaring argued in court papers that it was unusual to confine a person to their home, for what he called “a routine tax indictment.”

Scaring added that Terry’s finances were “dire,” and his inability to leave home and meet clients was having an “adverse impact” on “his ability to earn a living.”

McConnell argued unsuccessfully in court papers to have Terry remain in home confinement, writing: “It is also unclear why home confinement is detrimental to the defendant’s business, since his home has been his office and the address of record for his practice for years.”

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