Greendale Neurosurgeon Pleads Not Guilty to Tax Fraud Involving $8 Million

A Greendale neurosurgeon pleaded not guilty to a federal grand jury on allegations of tax fraud for failing to report $8.7 million in income that he allegedly hid in a bank account in India.

Arvind Ahuja appeared today in federal court in Milwaukee, reports Bloomberg

Ahuja, a board-certified neurosurgeon, allegedly wire transferred and maintained millions of dollars in bank accounts in India and the Bailiwick of Jersey at The Hongkong and Shanghai Banking Corporation Ltd. (HSBC) and allegedly failed to report these accounts to the IRS on his 2006-2009 tax returns. The HSBC bank account in India had a balance of $8,733,785 in 2009.

Ahuja also allegedly failed to report more than $1.2 million in interest income that he earned from his HSBC India account and failed to pay the taxes due on that income, according to the indictment.

Bloomberg also reports that Dan K. Webb, Ahuja’s attorney, said the case is based on a “tenuous factual basis” because HSBC didn’t give his client 1099 forms about his interest income.

The attorney also told Bloomberg that Ahuja made full payments to the IRS when he learned of his mistake.

The maximum penalty for each charge of false tax returns is three years in prison and a $250,000 fine. The failure to file FBAR charges each carry a maximum penalty of 10 years in prison and a $500,000 fine. A trial date has not yet been set for Dr. Ahuja.

Prosecutors told judges that Ahuja, a native of India, is able to flee with his family. Ahuja's Greendale home is valued at $1.2 million and his summer home in Aspen, Colorado, is worth $8.5 million.

Ahuja was released on a $5,000 cash bond and cannot travel outside of Southeastern Wisconsin without court permission.