Rao Desu, Tax Evasion, New Jersey 2023

TRENTON, N.J. — A New Jersey businessman was sentenced to 30 months in prison for conspiring to defraud the IRS.

Rao Desu, 53, of Warren, New Jersey, was found guilty of two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns.

The scheme involved cash-skimming at two pharmacies, Heights Pharmacy in Piscataway and Arthur Avenue Pharmacy in the Bronx, New York.

Between 2004 and 2013, Desu and his co-owner, Darshna Desai, concealed cash income from the IRS by separating it from other income and splitting it between them.

The duo filed false tax returns for the pharmacies, which failed to disclose the cash income.

Desu was also found guilty of filing false personal tax returns, which failed to disclose the cash income he received from the pharmacies.

Desai pleaded guilty to conspiracy to defraud the IRS in 2014 and is awaiting sentencing.

U.S. Attorney Craig Carpenito announced the sentencing, which also included a two-year supervised release, a $15,000 fine, and restitution of $459,075.

Special agents of the IRS-Criminal Investigation and the U.S. Department of Justice, Office of Inspector General, assisted in the investigation.

Source: https://www.justice.gov/usao-nj/pr/owner-pharmacies-sentenced-30-months-prison-conspiracy-defraud-irs