An Edison co-owner of a wholesale adult paraphernalia business in New York City admitted in court Tuesday to concealing more than a million dollars in income in various domestic and foreign bank accounts.
Sameer Gupta, 33, pleaded guilty before U.S. Magistrate Judge Patty Shwartz in Newark to one count of tax evasion in connection with his diversion of funds from the wholesale merchandise business, J.S. Marketers Inc.
Some of the diverted funds were deposited and held in undisclosed foreign accounts at HSBC in India.
According to U.S. Attorney Paul J. Fishman and statements made in court and court documents, Gupta is a 50 percent owner of J.S. Marketers Inc., which sold adult paraphernalia to large adult-store chains and smaller retail video stores and bodegas. From 2006 through 2009, Gupta diverted $822,916 of J.S. Marketer business receipts into 17 different personal bank accounts held in the names of various individuals, including himself, his wife, identified only as “A.G.,” and his daughter, identified as “D.G.”
Gupta directed more than $250,000 of those diverted funds into six different accounts held offshore at a branch of HSBC in India. From 2007 through 2009, Gupta caused 22 J.S. Marketers corporate checks to be made payable to himself, or his father, identified as “J.G.,” in amounts identical to invoices from J.S. Marketers’ suppliers. Gupta endorsed those checks, which totaled $375,138, and deposited them into bank accounts that he controlled.
In filing individual income tax returns for the years 2006 through 2009, Gupta did not report his income arising from the diverted J.S. Marketers funds and evaded taxes on $1,198,054 in income for 2006 through 2009.
As part ofhis plea agreement, Gupta has agreed to pay a one-time penalty of $259,045. The tax loss resulting from Gupta’s conduct is greater than $200,000 but less than $400,000.
Gupta faces a maximum sentence of five years in prison and a fine of $250,000 or twice his gain from the offense, together with the costs of prosecution. Gupta agreed to file true and accurate tax returns and to pay to the IRS all taxes and penalties owed, in addition to the $259,045 penalty imposed for his failure to disclose the foreign accounts.
Judge Shwartz scheduled sentencing for June 13, 2013, before U.S. District Court Judge Faith Hochberg.