Sunil Chawla, Tax Fraud, Maryland 2022

Baltimore, Maryland – Sunil Chawla, a 66-year-old business owner from Berlin, Maryland, pleaded guilty to tax fraud in federal court, admitting to intentionally failing to report $70,000 in annual income tax.

According to his guilty plea, Chawla owned and operated ‘India Emporium’, a seasonal retail store near Ocean City, Maryland for over 20 years. He also received income from a business (Company 1) operated by his son, defendant Saurabh Chawla, from 2009 to August 2019.

Chawla’s duties at Company 1 included receiving electronics and other items obtained by Company 1. He was involved in reselling, maintaining and tracking Company 1’s inventory, and packaging and shipping daily orders as directed by his son, Saurabh.

From 2009 to 2018, Chawla received an annual salary from Company 1 of approximately $60,000. Each month, Chawla frequently wrote himself a $5,000 check that was drawn against Company 1’s bank account. In 2009 and 2010, Chawla intentionally did not report any income from Company 1.

Ultimately, from 2012 to 2018, Chawla repeatedly engaged in tax fraud by underreporting his $60,000 annual salary at Company 1, resulting in a tax loss of $70,000 to the IRS.

Chawla faces a maximum sentence of three years in federal prison followed by one year of supervised release for tax fraud. His sentencing is scheduled for October 13, 2022, at 2 p.m.

United States Attorney Erek L. Barron commended the IRS and HSI for their work in the investigation, and thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case.

Chawla will be required to pay $70,000 in restitution as part of his plea agreement.

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