Kentucky Doctor Sentenced to Prison for Tax Fraud for Claiming Millions in Fraudulent Business Expenses

Washington, DC–(ENEWSPF)–July 7, 2015.  A London, Kentucky, doctor was sentenced today to federal prison in the U.S. District Court for the Eastern District of Kentucky in London for filing false federal income tax returns that claimed millions in fictitious business expenses, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. 

Dr. Visa Haran Sivasubramaniam, 44, was sentenced by U.S. District Judge Amul R. Thapar to serve two years in prison and one year of supervised release to be served in the county jail with work release involving providing services at a local medical clinic.  At sentencing, Judge Thapar also ordered Sivasubramaniam to pay a fine of $100,000 and restitution of $4,532,777 to the Internal Revenue Service (IRS).

According to court documents, Sivasubramaniam owned and operated Hematology Oncology Physicians East (HOPE), a medical clinic where he offered oncology and hematology services.  From 2007 through 2009, Sivasubramaniam earned more than $16 million in total income from HOPE.  However, on his 2008 and 2009 personal and corporate income tax returns, Sivasubramaniam underreported his income and claimed millions in false and fictitious medical supply expenses.  Over a three-year period, he claimed nearly $13 million in fraudulent business expenses.  On Jan. 9, Sivasubramaniam pleaded guilty to two counts of filing false individual income tax returns.

Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Yael T. Epstein and Thomas Voracek of the Tax Division, who are prosecuting the case. 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website

Source: www.justice.gov