An Indian-American doctor-cum-entrepreneur for defrauding his former company’s shareholders worth USD 49 million was sentenced to nearly 10 years imprisonment.
The accused identified as Sreedhar Potarazu (51), is an Opthalamic surgeon by profession, who is licensed in Maryland and Virginia. In the year 2000, he founded VitalSpring Technologies Incorporation and was its CEO and President. The US Department of Justice on its website said, he even served on its Board of Directors. To the shareholders of VitalSpring’s, materially false and misleading information was provided to them by Potarazu, in order to generate more than USD 49 million in capital investments in the company, alleged the Prosecutors.
The Department of Justice alleged that Potarazu, on various occasions, represented that VitalSpring was a financially successful company. The sale of VitalSpring was impending, which would have resulted in profits for shareholders. He further even admitted that he concealed from shareholders that VitalSpring failed to account for and pay over more than USD 7.5 million in employment taxes to the Internal Revenue Service.
Potarazu was remanded in custody on last Wednesday and will have to forfeit several homes, vehicles and back accounts.
Among the Indian-American community, Potarazu was highly known for promoting classical Indian dances, the UTSAV annual festival in the US. The event was held at the prestigious Kennedy Center.
In 2015, Sarod maestro Ustad Amjad Ali Khan, joined by his sons Amaan Ali Khan and Ayaan Ali Khan kicked off the festival. In the same year, at the White House, Potarazu was also instrumental in special screening of “Jai Ho” a documentary on the work of AR Rahman. This event which was personally attended by the legendary music director himself, was organized as a fund raiser for the Democratic party and its leaders Hillary Clinton and the former US President Barack Obama.
Acting Deputy Assistant Attorney General Goldberg said, “Like a director employing actors and props on a stage, Sreedhar Potarazu arranged for an imposter to pose as a buyer, provided a link to a bogus website and supplied fraudulent balance sheets, phony bank statements and false tax returns to convince VitalSpring investors and potential buyers that the company was financially healthy and up-to-date on its taxes.”
“As a result of his actions, shareholders are out more than $49.5 million and over $7.5 million in employment taxes due to the US Treasury were diverted and never paid.
“With Potarazu’s conviction and the sentencing hearings in this case, his fraud has been revealed, and today’s imposition of a 119 month sentence holds him fully accountable for his actions,” Goldberg said.
Dr Potarazu has been nominated to the vital credentials committee at the 2016 Democratic Convention in Philadelphia.
By Supraja
