TRENTON, N.J. – In a shocking move, Rao Desu, a 51-year-old owner of several retail pharmacies, was arraigned on charges he conspired to defraud the IRS.
According to documents filed in this case and statements made in court, Rao Desu, a 50 percent owner of DVS Pharma Inc., (d/b/a Heights Pharmacy), a retail pharmacy in Piscataway, conspired with his business partner Darshna Desai to conceal from the IRS the cash income that was earned by the pharmacy as part of a cash-skimming scheme.
Desu was also a 50 percent owner of Manvihar Pharmacy (d/b/a Arthur Avenue Pharmacy) in Bronx, New York. He conspired with the co-owner to conceal from the IRS the cash income that was earned by the pharmacy as part of a separate cash-skimming scheme.
For tax years 2004 through 2012, Desu and Desai filed false corporate income tax returns, IRS Forms 1120S, for Heights Pharmacy, which failed to disclose the cash that Desai received in salary and that was split between Desu and Desai.
Conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a $250,000 fine. Assisting and aiding in subscribing to false tax returns carries a maximum potential penalty of three years in prison and a $100,000 fine.
Desu was arraigned before U.S. District Judge Michael A. Shipp in Trenton federal court and pleaded not guilty. Desai pleaded guilty to conspiracy to defraud the IRS in 2014. Her sentencing is pending.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Karen D. Stringer of the Special Prosecutions Division. The allegations and charges in the Indictment are only accusations and the defendant is considered innocent unless and until proven guilty.
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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