A doctor from Lake Forest, Illinois, has been sentenced to 34 months in prison after a federal court found him guilty of health care fraud and hiding assets from the IRS.
Krishnaswami Sriram also faces three years of supervised release and must pay roughly $1.7 million in restitution to the U.S. government.
Tax Evasion Schemes Spanning Six Years
Court documents reveal that from 2011 to 2017, Sriram deliberately evaded paying approximately $1.6 million in federal taxes.
Among his tactics: he transferred the ownership of two rental properties to his children without their knowledge, while continuing to collect income from them.
He also moved roughly $700,000 from U.S. bank accounts to accounts in India.
To further reduce his tax liability, Sriram submitted offer-in-compromise documents to the IRS that deliberately omitted several assets, including an investment account in the U.S., bank and investment accounts in India, and the rental properties.
Altogether, his actions caused a significant tax loss to the IRS.
False Medicare Billings for Nonexistent Care
Between 2012 and 2022, Sriram also falsified Medicare claims for in-home physician visits that never occurred.
He billed Medicare for care provided to patients on dates when those individuals were either deceased or hospitalized elsewhere. These fraudulent medical records resulted in $136,980.36 in false Medicare payments.
Court Orders and Restitution
In addition to his prison sentence, the court ordered Sriram to repay the government approximately $1.7 million.
He will also be subject to three years of supervised release following his time in federal prison, ensuring oversight as he reintegrates into society.
Investigation and Prosecution
The case was investigated by the IRS Criminal Investigation unit.
Prosecution was led by Assistant U.S. Attorney Sara E. Henderson of the Northern District of California, with assistance from Victor Yanz, former Trial Attorney in the Criminal Division’s Fraud Section.
A Cautionary Tale for Health Professionals
Sriram’s sentencing highlights the severe consequences of tax evasion and health care fraud, serving
as a reminder that falsifying records or hiding assets from the IRS can result in prison time, hefty fines, and long-term legal consequences for medical professionals and business owners alike.
