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Justice News

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

FOR IMMEDIATE RELEASE
Friday, May 4, 2018

Dublin Man Sentenced To 16 Months In Prison For Filing False Corporate Tax Return

Defendant underreported income by more than $4 million

OAKLAND –Shiv D. Kumar, the former president and sole shareholder of A-Paratransit Inc. (API), was sentenced today to 16 months in prison for filing a false corporate tax return with the Internal Revenue Service, announced Acting U.S. Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.  The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge, following the entry of a guilty plea on April 20, 2018, in which Kumar admitted underreporting income on API’s 2010 corporate tax return. 

Kumar, 61, of Dublin, Calif., was the sole shareholder and president of API, a multi-million dollar company that provided transportation services to disabled individuals in the Bay Area.  Kumar filed false corporate returns with the IRS for tax years 2008, 2009, and 2010.  The returns underreported API’s gross receipts in total by more than $4 million, resulting in a tax loss to the United States of more than $1.4 million.  Kumar deposited API’s gross receipts into multiple bank accounts, concealed millions of dollars in gross receipts, and caused API to provide its tax return preparer with doctored and incomplete bookkeeping records showing less in gross receipts than API actually received.  Kumar further admitted the unreported gross receipts were used to purchase real property in California. 

In addition to the prison term, Judge Tigar ordered Kumar to serve a one-year term of supervised release.  Judge Tigar ordered Kumar to self-surrender on or before June 15, 2018, to begin serving his prison term.

Assistant U.S. Attorney Jose A. Olivera is prosecuting the case.  The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation. 
 

Topic(s): 
Tax
Updated May 30, 2018