An Indian-American based doctor, known for promoting traditional Indian dances in the United States, has been punished for almost 10 years of imprisonment for defrauding his previous company’s shareholders of an amount worthy of the US $49 million. An ophthalmic surgeon licensed in Maryland and Virginia, Sreedhar Potarazu, provided materially bogus and deceptive information to VitalSpring’s shareholders to stimulate more than $49 million in capital investments in the business.
Potarazu, 51, displayed on numerous events that VitalSpring was a fiscally successful company and that the sale of VitalSpring was imminent, which could have resulted in earnings for the shareholders, the Department of Justice alleged. The Indian-American doctor also accepted that he covered up from the shareholders that VitalSpring didn’t take into account and pay over more than the US $7.5 million in employment taxes to the Internal Revenue Service. In 2014, for instance, Potarazu provided shareholders with a written brief summary of functioning results that mirrored VitalSpring’s 2013 earnings to be roughly US $12.9 million when, in reality, the 2013 earnings were significantly less than the US $1 million, federal prosecutors alleged. Potarazu was very popular among the list of Indian-American community for hosting UTSAV, a yearly festival of traditional Indian music and party at the renowned Kennedy Center. In 2015, it was kicked from by Sarod maestro Ustad Amjad Ali Khan, became a member of by his sons Amaan Ali Khan and Ayaan Ali Khan.
The main fund raiser for the Democratic Party and its leader Hilary Clinton and the previous US President Barack Obama, Potarazu was also instrumental in a special screening of “Jai Ho”, a documentary on the work of AR Rahman at the White House in 2015. The renowned music director was in person present at the event at the White House. The Acting Deputy Assistant Attorney General Goldberg said that “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 the US $49.5 million and over the US $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,” Mr. Goldberg said. At the 2016 Democratic Convention in Philadelphia, Dr. Potarazu has been nominated to the top credentials committee.