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Illinois Doctor Faces Prison for $1.6M Tax Evasion

In a significant legal development, an Illinois physician from Lake Forest, Dr. Krishnaswami Sriram, has been sentenced to 34 months in prison. The physician engaged in an elaborate scheme from 2011 to 2017, involving health care fraud, asset concealment, and tax evasion, costing the U.S. government approximately $1.6 million in taxes.More details can be found here.

Dr. Sriram's case illustrates a blend of health care and tax fraud, areas where vigilance by authorities has become increasingly pronounced. Court documents reveal his tactics were not a first, citing a 2007 case where similar fraudulent practices were recorded.Read more about the case here. Such deceitful practices erode trust and underscore the need for transparency in financial dealings.

Among the deceptive tactics, Dr. Sriram transferred the title of rental properties to his children without their knowledge, continuing to collect the rental income himself. Such maneuvers are classic tax evasion strategies, misrepresenting actual ownership and income. Additionally, he relocated approximately $700,000 to bank accounts in India, further obscuring his financial standing.

This Image 1 opacity proved pivotal in his fraudulent "offer-in-compromise" submissions to the IRS, where he concealed critical assets both domestically and abroad, misleadingly portraying his inability to pay his tax debt.

Dr. Sriram’s case highlights significant losses for the IRS, celebrating a successful prosecution that serves as a warning. Such cases underscore the importance of full financial disclosures, especially when negotiating with fiscal authorities for debt relief. The Doctor’s nearly three-year prison sentence reflects the gravity of his misconduct, emphasizing the judiciary's stance against fraudulent manipulations in health care and tax systems.

The case also illustrates the prominent role of IRS Criminal Investigation (IRS-CI) agents who rigorously pursue fraud schemes exploiting the tax system. It serves as a reminder of the federal government’s intensified crackdown on fraud, from Medicare scams to deceptive tax refund strategies.Explore further cases here.

As a cautionary tale, Dr. Krishnaswami Sriram’s sentencing reminds all professionals that manipulative financial and tax activities lead to substantial consequences. The stringent actions of the justice system advocate that fraudulent practices within health care and tax frameworks will not go unchecked.

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