Doctor Hid Assets, Evaded $1.6M in Taxes - Now Sentenced to Prison Time
An Illinois physician from Lake Forest has received a 34-month prison sentence after admitting to a prolonged scheme involving health care fraud, asset concealment, and tax evasion. From 2011 to 2017, Dr. Krishnaswami Sriram orchestrated a multi-faceted deception, costing the U.S. government approximately $1.6 million in lost tax revenue. Additional court documents from a case that was decided in April 2007 show this wasn’t the first time the physician was accused of fraudulent practices.
According to the Department of Justice, Dr. Sriram took several clandestine steps to evade his tax obligations. One tactic involved transferring title to two rental properties to his children—without their knowledge—while he continued collecting rental income. Such sham transfers are a classic method of disguising ownership and income.
In addition, Sriram shifted roughly $700,000 from U.S. bank accounts to holdings in India, adding another layer of opacity to his assets.
When submitting an "offer-in-compromise" to the IRS—an application that allows taxpayers to settle a tax debt for less than the total—they must provide a full and accurate financial picture. Sriram, however, omitted critical information: he did not disclose investment accounts in the U.S., his offshore bank and investment assets in India, or his ownership of the rental properties. The omission falsely supported his claim of inability to pay.
Dr. Sriram’s actions led to substantial losses for the IRS. The government’s successful prosecution underscores the importance of transparency in financial disclosures, even when negotiating debt relief programs.
The sentence—nearly three years behind bars—simultaneously reflects the scale of the misconduct and the judicial system’s condemnation of fraudulent manipulation. Health care professionals occupy positions of trust. When such individuals exploit that trust, especially in conjunction with complex financial maneuvers like offshore transfers and sham ownership deals, it strikes at the integrity of the entire system.
This case is proof of the IRS's vigilance, aided by its Criminal Investigation (IRS‑CI) agents, in dismantling fraud schemes that misrepresent financial standing to evade taxes.
This case is one among many illustrating the federal government’s crackdown on health care and tax fraud. From multi-million dollar Medicare scams to fraudulent refund schemes, law enforcement agencies continue to crack down on wrongdoing, especially when it exploits the health care system or tax code regulations.
Dr. Krishnaswami Sriram’s sentencing serves as a serious reminder that abuse of medical and tax systems has real consequences. His prison sentence sends a strong signal: professionals who engage in deceptive practices will ultimately be held accountable.
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