Dublin Exec Pleads Guilty to $4.2M Tax Fraud

Shiv D. Kumar, a 60-year-old Dublin resident and sole shareholder of A-Paratransit Inc., has pleaded guilty in federal court for his role in a massive tax fraud scheme that siphoned nearly $1.6 million from the Internal Revenue Service.

The charges stem from Kumar’s admission that he was the sole shareholder and president of API, a company specializing in transportation services for the disabled. Kumar is accused of filing false corporate tax returns for the years 2009 and 2010, significantly underreporting the company’s gross receipts by $2,229,216 and $2,412,435.

In an attempt to hide these funds from the IRS, Kumar is said to have diverted the unreported proceeds into two bank accounts he failed to disclose to his accountant. The money was reportedly used for personal expenses, including property purchases in Vallejo, Calif.

Under the plea agreement, Kumar has confessed to one count of making and subscribing a false tax return, in violation of 26 U.S.C. § 7206(1). He now faces a maximum sentence of three years in prison and a fine of $250,000 when he is sentenced on July 7th, 2017.

The prosecution of Kumar’s case has been led by Assistant U.S. Attorney José A. Olivera and Trial Attorney Rebecca J. Sable, with assistance from Ed Solis and Kathy Tat. The investigation leading to these charges was conducted by the Internal Revenue Service.

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