Ashvin Desai of San Jose has been indicted by a federal grand jury on three counts of tax evasion, two counts of willfully aiding preparation of false tax returns and three counts of failing to file reports of Foreign Bank and Financial Accounts (FBARs), the Justice Department said.
Desai faces up to 10 years in prison and a maximum penalty of 500,000 dollars on the various charges.
According to the indictment, during 2009, Desai, his wife and his two adult children maintained approximately $8.8 million in his undeclared accounts at HSBC in India.
Desai evaded income taxes during 2007-2009 by filing false returns that failed to report $1,306,810 of interest income, and that falsely reported that he did not have bank accounts located in a foreign country.
Desai also prepared false tax returns for his children for tax year 2009 that failed to report approximately $189,000 of interest income paid by HSBC in India.
The indictment further alleges that during 2009, Desai closed an account he maintained at HSBC in England and directed that the funds from that account be transferred to a bank account maintained at HSBC Dubai in the name of one of his children.
U.S. citizens are obligated to report all income earned from foreign financial accounts and pay taxes due on that income.
An indictment is only an allegation of criminal conduct and is not evidence of guilt.