Illinois Doctor Sentenced for Tax Fraud and Asset Concealment

An Illinois physician from Lake Forest has been sentenced to 34 months in prison after admitting to a complex tax evasion and health care fraud scheme. Between 2011 and 2017, Dr. Krishnaswami Sriram undertook fraudulent activities that cost the U.S. government approximately $1.6 million in tax revenue. Previous court documents reveal this wasn't the first time he faced accusations of fraudulent practices.

According to the Department of Justice, Dr. Sriram engaged in various illicit methods to avoid tax liabilities. He transferred ownership of two rental properties to his children, unbeknownst to them, while continuing to collect rental income, disguising both ownership and income.

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Moreover, Sriram shifted approximately $700,000 from U.S. bank accounts to financial institutions in India, adding another layer to conceal his financial assets.

As part of an "offer-in-compromise" application to the IRS—allowing taxpayers to settle outstanding tax debt for less than the full amount—Sriram intentionally omitted critical financial details. He failed to disclose U.S. investment accounts, offshore assets in India, and ownership of the rental properties, thereby falsely claiming an inability to pay.

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Dr. Sriram's deliberate omissions resulted in significant losses for the IRS and highlight the necessity of transparency in financial disclosures, particularly when negotiating tax debt relief.

The nearly three-year prison sentence serves as a stark reminder of the severe repercussions of orchestrating such fraudulent activities. Health care professionals, trusted by society, are held to high ethical standards. When these individuals exploit their positions through financial manipulations like offshore transfers and fabricated ownerships, it undermines the integrity of the entire system.

This case highlights the diligence of the IRS’s Criminal Investigation team in identifying and dismantling fraud schemes that involve presenting false financial conditions to dodge taxes.

Dr. Krishnaswami Sriram’s sentencing is a strong signal that the abuse of medical and tax systems will not go unpunished. His conviction emphasizes the broader federal commitment to cracking down on health care and tax fraud, from large-scale Medicare scams to misleading refund claims, ensuring justice prevails against those exploiting the system.

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