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Owes Over $750,000 in Additional Taxes to the IRS
Greenbelt, Maryland –Krishan M. Mathur, M.D., age 64, of LaPlata, Maryland, pleaded guilty today to filing false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Dr. Mathur’s plea agreement, he is an oncologist and has been the owner and operator of the Cambridge Cancer and Infusion Center in Maryland since 1984. Dr. Mathur also served as the Medical Director for Hospice of Charles County and was paid for his services.
Dr. Mathur admitted that he filed false tax returns for tax years 2006, 2007 and 2008, falsely overstating his expenses and underreporting his income. For example, Dr. Mathur received rebate payments from certain companies from which he had purchased pharmaceuticals. Those rebates were deposited directly to his personal bank account. Dr. Mathur failed to disclose the payments or provide his bank records to his accountant. As a result, the accountant claimed the pharmaceutical purchases as expenses, but the failed to properly report the income received from the rebate payments. In addition, Dr. Mathur wrote checks and withdrew funds for personal use from his medical practice’s bank account, which he then falsely indicated on business records were payments made to medical suppliers. Finally, Dr. Mathur failed to report income he received from the Hospice of Charles County for serving as its Medical Director. The income was deposited into his personal bank account and not disclosed to his accountant.
As a result of the scheme, Dr. Mathur owed additional taxes for those years totaling $750,249. As part of his plea agreement, Dr. Mathur will be required to pay restitution to the IRS in that amount.
Krishan Mathur faces a maximum penalty of three years in prison. U.S. District Judge Paul W. Grimm has scheduled his sentencing for July 17, 2014.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas Mitchell and Bryan E. Foreman, who prosecuted the case.