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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of California

FOR IMMEDIATE RELEASE
Thursday, May 5, 2016

Woodland Husband and Wife Indicted for Tax Evasion

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Virendra “Vic” Maharaj, 49, and his wife, Rosalin Prasad, 40, both of Woodland, charging them with one count of conspiring to defraud the United States by impeding the IRS’s assessment of their income tax liability, and further charging Maharaj with three counts of tax evasion, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January 2005 and January 2010, Maharaj and Prasad conspired to defraud the United States by impeding the Internal Revenue Service in its attempt to assess the couple’s tax obligations for the years 2005, 2006, and 2007. Additionally, Maharaj, who worked at multiple car dealerships in Sacramento and Woodland, attempted to evade or defeat the assessment of his tax obligations for those same tax years. In an attempt to conceal the source and amount of his income, Maharaj caused part of his wages to be paid directly to Prasad. He caused Wage and Tax Statements on W-2 forms to be issued in Prasad’s name for wages actually paid to him, and in amounts that recorded only part of the wages he received. Maharaj took some of his compensation from the car dealerships in cash, and this compensation was not recorded on the W‑2 forms. Maharaj also caused the dealership to pay some of his compensation directly to one of Prasad’s creditors to pay for a loan, and these payments were not recorded on the W‑2 forms.

According to the indictment, tax returns were filed for Prasad for the tax years 2005, 2006, and 2007, reporting the wages on the W-2 forms that underreported the income received for Maharaj’s work. Maharaj failed to file tax returns for any of the years in question.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Nirav Desai is prosecuting the case.

The defendants are scheduled to be arraigned on the indictment on May 6, 2016.

If convicted of the conspiracy offense, Maharaj and Prasad each face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted on the tax evasion counts, Maharaj faces a maximum statutory penalty of five years in prison and a $100,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Topic(s): 
Tax
Updated May 5, 2016