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Press Release

Bakersfield Pain Management Doctor Pleads Guilty to Tax Evasion

For Immediate Release
U.S. Attorney's Office, Eastern District of California

FRESNO, Calif. —Janardhan Grandhe, 65, of Bakersfield, pleaded guilty today to tax evasion, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Grandhe was a pain management doctor in Bakersfield, California doing business as Central Valley Pain Management (CVPM). In 2017, 2018 and 2019, Grandhe willfully filed false tax returns for CVPM with overstated expenses and false individual tax returns for himself that omitted gross receipts he received. In total, Grandhe evaded personal tax liability exceeding $300,000.

Between 2017-2019, Grandhe provided checks to employees claiming to be reimbursements for employee expenses that were then included as deductions on the CVPM tax returns. Grandhe claimed the reimbursements were for out-of-pocket costs incurred by employees for continuing medical education, meals, mileage, and travel expenses. In many cases, those expenses were never incurred by the employees. Grandhe instead instructed those employees to cash the checks and provide cash back to Grandhe, which he deposited into accounts controlled by him or his family members. Grandhe then provided false documentation to his tax preparer to support the false deductions.

Between 2017-2019, Grandhe diverted business receipts to his personal bank accounts and did not provide his tax preparer with these personal bank account records so these amounts were not included as business gross receipts on the CVPM tax returns. These unreported business receipts included checks from customers for stem cell injections. Additionally, Grandhe diverted credit card receipts received by his business for medical services rendered into his personal bank account. The unreported income on the CVPM tax returns resulted in decreased net income on the Grandhe’s personal tax returns.

This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

Grande is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 3, 2023. Grandhe faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Updated October 14, 2022