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OAKLAND –Shiv D. Kumar, the former president and sole shareholder of A-Paratransit Inc. (API), was sentenced today to 18 months in prison for filing false corporate tax returns with the Internal Revenue Service, announced U.S. Attorney Brian J. Stretch, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Judge Jon S. Tigar following the entry of a plea agreement in March 2017 in which Kumar admitted underreporting more than $4.6 million in gross receipts.
According to his plea agreement, Kumar, 60, of Dublin, Calif., was the sole shareholder and president of API, a company that provided transportation services to disabled individuals. Kumar filed false corporate returns with the IRS for tax years 2009 and 2010, which underreported API’s gross receipts by $2,229,216 and $2,412,435, causing a tax loss to the United States of $1,584,055. Kumar admitted that he deposited API’s receipts into three separate bank accounts and that to conceal API’s true gross receipts, he provided his accountant with bank records from only one of the bank accounts. Kumar further acknowledged he provided his accountant with false books and records that omitted gross receipts diverted to undisclosed bank accounts. Kumar used the unreported funds for personal expenditures, including purchasing property in the area of Vallejo, Calif.
In addition to the prison term, Judge Tigar ordered Kumar to serve one year of supervised release and informed the parties that he will set a hearing in the future to determine the amount of restitution that Kumar should pay.
Assistant U.S. Attorney José A. Olivera and Trial Attorney Rebecca J. Sable of the Tax Division are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.