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Tuesday, January 13, 2015

DOCTOR CLAIMED MILLIONS IN FALSE BUSINESS EXPENSES

 FROM:  U.S. JUSTICE DEPARTMENT 
Friday, January 9, 2015
Former Kentucky Doctor Pleads Guilty to Filing False Tax Returns Claiming Millions in False Business Expenses

A former London, Kentucky, doctor pleaded guilty today to filing false tax returns on which he falsely reported millions in fictitious business expenses to reduce his taxable income, announced Deputy Assistant Attorney General David A. Hubbert for the Justice Department’s Tax Division.

According to the documents filed with the court, Dr. Visa Haran Sivasubramaniam owned and operated Hematology Oncology Physicians East (HOPE), where he offered medical oncology and hematology services.  During a three year period, from 2007 through 2009, Sivasubramaniam earned more than $16 million in total income from HOPE, but he reported nearly $13 million worth of false and fictitious medical supply expenses to offset that income.  Sivasubramaniam admitted that for 2008 and 2009, he signed false corporate tax returns for HOPE and false personal tax returns, which reported limited taxable income and ficticious losses from HOPE when he in fact knew that his net income was millions of dollars more.  According to court documents, Sivasubramaniam owes more than $4.5 million in taxes.

Sivasubramaniam faces a statutory maximum sentence of six years in prison and a $500,000 fine.  His sentencing is set for July 7 before U.S. District Judge Amul R. Thapar for the Eastern District of Kentucky.

This case was investigated by special agents of the Internal Revenue Service-Criminal Investigation.  Trial Attorneys Yael T. Epstein and Thomas G. Voracek of the Tax Division are prosecuting the case.