Four individuals of Indian descent have admitted to committing federal tax offenses in a scheme that resulted in significant financial losses for the US government. The illicit activities took place from January 2019 to October 2022 and involved the submission of fraudulent federal tax returns containing fictitious business expenses to artificially decrease tax obligations for clients and generate improper refunds. This information was disclosed by the United States Attorney’s Office for the District of West Texas.
The main orchestrator of the scheme, Mathews Chacko, confessed to a charge of conspiracy to defraud the US on March 10 of this year. Chacko collaborated with staff members to include false business expenses on client tax returns, with some clients being unaware of the deception while others were informed via email. He acknowledged responsibility for a tax loss ranging from over $3.5 million to under $9.5 million and could potentially face a maximum prison sentence of five years.
In a similar vein, Anish Pillai and Mou Kundu pleaded guilty in the previous month to submitting false tax returns within the same scheme. Pillai admitted to causing losses between approximately $1.5 million and $3.5 million, while Kundu acknowledged losses totaling between $250,000 and $550,000. Both individuals could be sentenced to a maximum of three years in prison.
Additionally, Subhala Suresh pleaded guilty on March 24 to aiding and abetting the filing of a false tax return. While employed at a tax preparation firm, Suresh assisted in the submission of returns containing fabricated expenses aimed at reducing clients’ tax liabilities and resulting in unwarranted refunds. She accepted responsibility for causing a tax loss ranging from $250,000 to $550,000 and may face up to three years in prison, along with potential supervised release, restitution, and financial penalties.
Suresh also admitted to submitting false returns with counterfeit expenses tied to the broader fraudulent activities involving Chacko, Pillai, and Kundu. The sentencing for all four individuals will be determined at a later date by a federal district court judge, taking into account various legal guidelines and factors. The investigations were conducted by the Internal Revenue Service (IRS) Criminal Investigation and prosecuted by Trial Attorneys Marissa R Brodney and Michael L Jones from the Department of Justice’s Criminal Division, Tax Section.