Anthony Chaudhuri and Margaret Chaudhuri Indicted for Conspiracy to Defraud The United States and Failure to Account for and Pay Over Employment Taxes

Source- http://www.justice.gov/tax/txdv111122.htm

WASHINGTON - Anthony Chaudhuri and Margaret Chaudhuri, of Naples, Fla. were indicted by a federal grand jury on Aug. 8, 2011, in Detroit, with one count of conspiracy to defraud the United States, 11 counts of failure to account for and pay over employment taxes and one count of corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws, the Justice Department and the Internal Revenue Service (IRS) announced today. The Chaudhuris appeared in U.S. District Court today for arraignment.

The indictment alleges that Anthony and Margaret Chaudhuri owned and operated a hospital inventory control software company under the name Ariel Computing and various other nominee names, including ADI. Ariel Computing was operated from various addresses in Ann Arbor, Mich. The indictment alleges that between 1996 and 2008 the Chaudhuris withheld approximately $888,353.23 in employment taxes from Ariel Computing employees, but failed to pay over to the IRS approximately $600,984.11 of these withheld taxes. Instead, the Chaudhuris used these monies on business expenses, employee salaries and personal expenses.

The indictment further alleges that between 2004 and 2007, Anthony Chaudhuri earned approximately $985,857.39 in income from Ariel Computing, yet failed to file any U.S. Individual Income Tax Return Form 1040 for the tax years 2004 through 2008, or pay any federal income tax due and owing in those years. Additionally, the indictment alleges that between 2005 and 2007, the Chaudhuris generated more than $2 million in income in the name of ADI, but failed to file any income tax return reporting that income. Instead, in an effort to obstruct and impede the due administration of the Internal Revenue laws, the Chaudhuris committed a number of corrupt endeavors, including making false statements to the IRS misrepresenting their income and the source of their income, using nominee bank accounts, issuing false and fraudulent Forms W-2 to Ariel Computing employees and failing to file individual tax returns.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, the Chaudhuris face a maximum of five years in prison and a $250,000 fine for the conspiracy charge and for each of the failure to account for and pay over employment tax charges and a maximum of three years in prison and a $250,000 fine for the corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws charge.

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