Dublin Resident Pleads Guilty To Making And Subscribing False Income Tax Returns
Defendant Underreported His Company’s Gross Receipts by More than $4.6 Million
OAKLAND – Shiv D. Kumar pleaded guilty in federal court in Oakland today to making and subscribing false U.S. corporation income tax returns, 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 Special Agent in Charge Michael T. Batdorf. The plea was accepted by Honorable Judge Jon S. Tigar, U.S. District Judge.
In pleading guilty, Kumar, 60, of Dublin, admitted he was the sole shareholder and president of A-Paratransit Inc. (API), a company that provided transportation services to disabled individuals. Kumar filed false corporate tax returns with the Internal Revenue Service for tax years 2009 and 2010, which underreported API’s gross receipts by $2,229,216 and $2,412,435, causing a tax loss of $1,584,055. Kumar attempted to conceal those gross receipts from the IRS by diverting those gross receipts into two bank accounts that he failed to disclose to his accountant. The unreported funds were used for personal expenditures, including purchasing real property in the area of Vallejo, Calif.
Kumar was charged by information with one count of making and subscribing a false tax return, in violation of 26 U.S.C. § 7206(1). Under the plea agreement, Kumar pleaded guilty to the single count.
Kumar’s sentencing hearing is scheduled for July 7, 2017, at 9:30 a.m. before Judge Tigar. The maximum statutory sentence for making and subscribing a false tax return in violation of 26 U.S.C. § 7206(1) is three years in prison and a fine of $250,000. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney José A. Olivera and Trial Attorney Rebecca J. Sable of the Tax Division are prosecuting the case with the assistance of Ed Solis and Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service.