Four of Indian origin plead guilty in US tax fraud of over $5.5 million

Four individuals of Indian origin have pleaded guilty to federal tax crimes as part of a scheme that caused losses worth millions of dollars to the US government.

The scheme spanned between January 2019 to October 2022 and involved preparing false federal tax returns with fabricated business expenses to artificially reduce clients' tax liabilities and generate improper refunds, according to a press release by the United States Attorney's Office of the District of West Texas.

According to the US Attorney's Office, the scheme's mastermind, Mathews Chacko, pleaded guilty on March 10 this year to one count of conspiracy to defraud the US.

Chacko conspired with employees to insert false business expenses on client returns, CBS News Texas reported. In some cases, clients were unaware; in others, they were informed via e-mail. He admitted causing a tax loss exceeding $3.5 million but less than $9.5 million. Chacko faces a maximum of five years in prison.

Two others who pleaded guilty last month to filing false tax returns in the same scheme were Anish Pillai and Mou Kundu. Pillai admitted causing approximately $1.5 million to $3.5 million in losses, while Kundu admitted causing between $250,000 and $550,000 in losses. Both face a maximum of three years in prison.

Subhala Suresh also pleaded guilty on March 24 to one count of aiding and assisting the filing of a false tax return, as detailed in the US Attorney's Office press release. The US-based news outlet, CBS News Texas reported that while working at a tax preparation firm, Suresh prepared returns with fabricated expenses designed to lower clients’ taxes owed, resulting in refunds they were not entitled to receive. She admitted causing a tax loss between $250,000 and $550,000. Suresh faces a maximum of three years in prison, plus possible supervised release, restitution, and monetary penalties.

According to a report by the US-based local news outlet, Dallas Express, Suresh admitted to filing false returns with fake expenses linked to the larger scheme involving Chacko, Pillai, and Kundu.

All four individuals will be sentenced at a later date by a federal district court judge, who will consider the US Sentencing Guidelines and other statutory factors. The cases were investigated by Internal Revenue Service (IRS) Criminal Investigation and prosecuted by Trial Attorneys Marissa R Brodney and Michael L Jones of the Department of Justice's Criminal Division, Tax Section.

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