A doctor from Lake Forest, who was convicted 20 years ago of Medicare fraud, is facing federal charges after prosecutors say he defrauded the IRS out of $1.6 million in taxes.
A federal grand jury returned an indictment Friday charging Krishnaswami Sriram, 64, of Lake Forest, with tax evasion, filing false tax returns and assisting in the preparation and filing of false tax returns.
According to the indictment, Sriram attempted to evade payment from 2011 to 2017 of approximately $1.6 million in taxes, penalties and interest he owed to the IRS.
Among other “evasive acts,” Sriram allegedly caused his children to be the nominal owners of two rental properties he owned and operated while still continuing to receive income from the properties, prosecutors said.
He also allegedly transferred more than $600,000 from his U.S. bank accounts into bank accounts in India that he controlled.
Prosecutors said Sriram filed false individual income tax returns that did not report his income from the rental properties and did not disclose his ownership interest in the foreign accounts.
He also allegedly filed tax returns for his children that falsely reported the income and expenses related to the rental properties.
Prosecutors say Sriram submitted false documents to the IRS that omitted some of his assets, including an investment account in the United States, investment and bank accounts in India and multiple rental properties.
Sriram faces up to five years in prison for tax evasion and up to three years for each count of filing a false tax return and aiding in the filing of a false tax return.
IRS-Criminal Investigation, the FBI and the Department of Health and Human Services are investigating the case. The case is being prosecuted by the Justice Department’s Tax Division.
In 2002, Sriram pleaded guilty to mail fraud, healthcare fraud and tax fraud after admitting to billing insurers for tests and procedures that were not performed, the Chicago Tribune reported.
He was sentenced to probation in that case and avoided prison.