Owner Of Ashoka Indian Cuisine Pleads Guility To Tax Evasion
Raveena Reddy, of Rochester Hills, Michigan, pleaded guilty yesterday to tax evasion for 2005 and 2006, United States Attorney Barbara L. McQuade announced. United States Attorney McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service-Criminal Investigation.
According to court records, during 2005 through 2006 tax years, Reddy served as the owner of Ashoka Indian Cuisine located in Canton and Troy Michigan. During that time, she deposited the catering income into her personal bank account and failed to provide her tax return preparer that information. The plea agreement stated that she instructed her clients to make their checks payable to her rather than to the restaurants. She received proceeds totaling over $363K and purposely failed to report the income on her federal income tax returns. In addition, Reddy failed to pay over $75K in taxes owed to the IRS. Reddy entered the guilty plea in United States District Court before Judge Arthur J. Tarnow.
A sentencing hearing was set by Judge Tarnow for March 13, 2012 at 2pm. The maximum penalty for tax evasion is imprisonment of up to 5 years and a fine of $100K.
"The law is clear on the issue of taxable income and who is required to file and pay taxes. No one is above the law to include Raveena Reddy," said Special Agent in Charge Erick Martinez. "The responsibility to pay taxes should not be taken lightly."
This case is being investigated by special agents of the IRS and prosecuted by Assistant U.S. Attorney Paul Burakoff.