ALEXANDRIA, Va. — Sreedhar Potarazu, 51, of Potomac, Maryland, pleaded guilty today to orchestrating a dual financial crime spree that looted $30 million from shareholders and stole $7.5 million in unpaid employment taxes from the U.S. Treasury. The CEO of VitalSpring Technologies Inc. admitted to years of deception, falsified records, and outright lies to enrich himself while his company crumbled under fraud and IRS liabilities.
Potarazu, once a licensed ophthalmic surgeon in Maryland and Virginia, founded VitalSpring in September 2000 as a McLean-based health care data analysis firm. By 2015, the company rebranded as Enziime, LLC — but the name change masked no truth. From 2009 to 2016, Potarazu raised approximately $32 million from over 160 investors using a web of lies, including fake bank statements, inflated income reports, and phantom sale deals that never materialized.
According to court filings, Potarazu repeatedly told shareholders the company was on the verge of a lucrative sale, assuring profits while hiding the reality: VitalSpring had never turned a profit since 2009. He concealed more than $7.5 million in unpaid employment taxes owed to the IRS and submitted falsified corporate tax returns to investors and a shareholder-appointed Special Review Committee formed in November 2014 after a Delaware lawsuit exposed his misconduct.
“For years Potarazu enriched himself by abusing the trust of his company’s many investors and stealing millions of dollars from them through a complex scheme of fraud and deceit,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This case is a prime example of this office’s ongoing commitment to bringing white-collar criminals to justice.”
Principal Deputy Assistant Attorney General Ciraolo added: “Sreedhar Potarazu viewed himself as above the law — deliberately defrauding investors and stealing from the U.S. Treasury — and with today’s guilty plea, he is held accountable for his criminal conduct. Like other individuals who willfully ignore their employment tax obligations, Potarazu faces incarceration and substantial monetary penalties.”
Potarazu pleaded guilty to one count of inducing interstate travel to commit fraud and one count of failing to account for and pay over employment taxes. Sentencing has been set for a later date. The case was investigated by the IRS Criminal Investigation Division and prosecuted by the U.S. Attorney’s Office for the Eastern District of Virginia, underscoring a tightening federal crackdown on corporate fraud and tax evasion disguised as innovation.
Related Federal Cases
- Nigerian National Sentenced to 63 Months for Credit Card Fraud Scheme · New Hampshire
- AG James Leads Coalition Against Trump’s Climate Rollback · Washington
- NY AG Sues to Block Planned Parenthood Defunding · Washington
- Seth Rehfuss Gets 50 Months for Medicare Swindle · Mississippi
- Virginia Man Gets 19 Months in Medicare Swindle · Mississippi
Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News