Monmouth County Pharmacist facing prison time for evading tax payments
A licensed Monmouth County pharmacist admits to cashing millions worth of checks from his pharmacy to evade income tax payments, U.S. Attorney Craig Carpenito announced.
Ajay Barthwal, 43, of Morganville failed to report on the income tax returns he filed while working at Old Bridge Drugs and Surgicals.
He pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit tax evasion in connection with income he received from (OBDS) during 2009 through 2011, that he failed to report on the income tax returns he filed for those years.
In court, Barthwal and his wife claimed to be each 50 percent owners of OBDS.
However, investigators say Barthwal was actually a one-third owner in OBDS, and two other individuals, Dilip Naik and Bhavesh Mistry, both of whom have previously pleaded guilty to related tax crimes, were each one-third owners and “silent partners.”
As a partnership, OBDS was required to file an IRS Form 1065 U.S. Partnership Income Tax Return.
Income received by the business would flow through to the individual partners’ Individual Income Tax Return, IRS Forms 1040.
As owners of OBDS, Barthwal, Naik and Mistry each were responsible for accurately reporting to the IRS their business income and respective personal incomes.
Barthwal admitted that from at least January 1, 2009, through November 5, 2012, he, Naik and Mistry all agreed to evade paying income taxes.
He admitted that he, Naik and Mistry agreed to hide taxable revenue of $9,343,234.00, which OBDS had received, by submitting to the IRS tax returns that substantially under-reported the gross receipts of OBDS between 2009 through 2011.
Beginning in January 2009, Barthwal and Naik caused business receipts from OBDS to be cashed at a check cashier in Jersey City.
Barthwal then deposited only a portion of the OBDS business receipts into the OBDS operating account, and Barthwal, Naik and Mistry each received approximately one-third of the proceeds of the OBDS business receipts that were not deposited into the operating account.
In early 2009, Barthwal, Naik and Mistry agreed to hide the undeposited gross cash receipts from OBDS from the IRS.
Barthwal admitted that he, Naik and Mistry failed to pay $4,114,102.00 in taxes that would have been due and owing to the IRS.
The count of conspiracy to commit tax evasion is punishable by a maximum of five years in prison and a fine of $250,000.00, or twice the gross gain or loss caused by the offense, whichever is greater.
Sentencing is scheduled for July 7, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Frank Agostino Esq., Hackensack, New Jersey.
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