Doctor Hid Assets, Evaded $1.6M in Taxes—Now Sentenced to Prison Time

An Illinois physician from Lake Forest has been sentenced to 34 months in jail after admitting to a long-running scam including health care fraud, asset concealment, and tax evasion.  From 2011 to 2017, Dr. Krishnaswami Sriram defrauded the US government of $1.6 million in lost tax money through many schemes.  Additional court documents from a case determined in April 2007 show that the physician had previously been accused of fraudulent conduct.

According to the Department of Justice, Dr. Sriram took many clandestine attempts to dodge taxes.  One approach involves transferring title to two rental houses to his children—without their knowledge—while continuing to collect rental revenue.  Sham transfers are a common means of concealing ownership and income.

Furthermore, Sriram transferred approximately $700,000 from U.S. bank accounts to holdings in India, adding another layer of obscurity to his assets.

 When filing a "offer-in-compromise" with the IRS—an application that permits taxpayers to settle a tax liability for less than the full amount—they must give a complete and accurate financial picture.  Sriram, on the other hand, failed to reveal essential information, such as his investment accounts in the United States, his offshore bank and investment holdings in India, or his ownership of the rental properties.  The omission falsely bolstered his claim of being unable to pay.

Dr. Sriram's actions resulted in huge losses for the IRS.  The government's successful prosecution highlights the necessity of transparency in financial disclosures, even when discussing debt relief schemes.

The sentence—nearly three years in prison—reflects both the severity of the misconduct and the court system's disapproval of deceptive manipulation.  Healthcare practitioners have positions of trust.  When such individuals take advantage of such confidence, particularly when combined with intricate financial tactics such as offshore transfers and sham ownership arrangements, the entire system's integrity is jeopardized.

The IRS's Criminal Investigation (IRS-CI) investigators successfully dismantled fraud schemes that used false financial information to escape taxes.

This case is one of many that demonstrate the federal government's fight on health-care and tax fraud.  From multi-million dollar Medicare frauds to fraudulent refund schemes, law enforcement authorities are cracking down on misbehavior, particularly whether it involves the health care system or tax code restrictions.

Dr. Krishnaswami Sriram's sentencing serves as a stark reminder that abusing the medical and tax systems has significant consequences.  His prison term sends a powerful message: professionals who participate in deceitful tactics will eventually face consequences.