Indian-origin man sentenced to 5 years for Rs 258-crore tax fraud scheme in US
An Indian-origin man in Texas has been sentenced to five years in prison for his role in a nationwide tax fraud scheme that helped business owners conceal more than $27 million (around Rs 258 crore) in income from the US government.
Aanand Shukla, a resident of Jonestown, Texas, was sentenced to 60 months in prison after pleading guilty to conspiracy to defraud the US, according to the Department of Justice (DOJ). The scheme operated between 2017 and 2025 and involved the promotion and sale of an abusive trust-based tax shelter to business owners across the country.
Shukla and his co-conspirators marketed the arrangement as a way for clients to retain control over their money while avoiding taxes on most of their business earnings. The scheme was promoted nationwide through seminars, webinars, podcasts and direct sales pitches.A PROMISE TO 'OWN NOTHING, CONTROL EVERYTHING'
According to court documents and statements made in court, the tax shelter was sold with the promise that clients could "own nothing, control everything" while eliminating taxes on nearly all of their business income.
Clients were typically charged between $25,000 and $55,000 for the trust packages, while some were quoted fees as high as $225,000.
Shukla instructed participants to restructure their businesses so that approximately 98 per cent of their income would pass through a series of trusts and a private family foundation. Prosecutors said the arrangement was designed to conceal income from the Internal Revenue Service (IRS) while giving clients continued access to their money.
The scheme also encouraged clients to treat personal spending as business-related deductions. Shukla instructed them to use trust accounts to cover expenses such as vehicles, entertainment and mortgage payments.$27 MILLION INCOME CONCEALED FROM IRS
The DOJ said Shukla was not merely a promoter of the arrangement but also personally used the tax shelter. He prepared trust documents, trained other people to promote the scheme and directed clients towards tax preparers whom he knew would participate in the arrangement.
Through these activities, prosecutors said Shukla helped facilitate the concealment of more than $27 million in income from the IRS β equivalent to roughly Rs 258 crore.
The case centred on an arrangement that prosecutors described as an abusive tax shelter rather than a legitimate tax-planning structure. Shukla's role included bringing clients into the system and helping them implement the structure in their businesses.
Shukla pleaded guilty to one count of conspiracy to defraud the United States on March 10.
The case was investigated by IRS Criminal Investigation, while prosecutors from the Justice Department's National Fraud Enforcement Division's Tax Section handled the prosecution. Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and US Attorney Justin R. Simmons for the Western District of Texas announced the sentence.
The DOJ said its newly created National Fraud Enforcement Division is focused on investigating and prosecuting fraud against Americans. The division was announced on April 7 as part of the administration's broader effort to combat fraud, waste and abuse in federal programmes.- EndsPublished By: Satyam SinghPublished On: Sep 13, 2026 00:05 IST
