New York: An Indian-American entrepreneur has pleaded guilty to charges that he concealed from US tax authorities nearly $7.9 million which he held in secret bank accounts in India and Switzerland and has agreed to pay $2.4 million penalty for not disclosing them.
Sanjay Sethi, 52, of New Jersey pleaded guilty on January 8 before US District Judge Jose Linares in Newark federal court to information charging him with conspiracy to conceal assets in undeclared bank accounts from the Internal Revenue Service (IRS).
Sethi used corporations in the Cayman Islands and the British Virgin Islands to conceal his assets and income he held in secret bank accounts in Switzerland and India, US Attorney Paul Fishman said.
“Our criminal laws do not tolerate those, who use foreign accounts to conceal their assets,” Fishman said. “Cheating the government out of tax dollars hurts all honest taxpayers.”
Sethi faces a maximum potential sentence of five years in prison and a fine of $250,000 when he is sentenced on April 18.
He has agreed to file true and accurate tax returns and to pay to the IRS all taxes and penalties owed, in addition to the $2.4 million penalty.