Warren Local, Owner Of Pharmacies Charged In Cash-Skimming Scheme

WARREN, NJ — A Warren local and owner of several retail pharmacies, including one in Piscataway, was arraigned on charges for trying to hide case income from the IRS as part of a cash-skimming scheme, U.S. Attorney Craig Carpenito announced.

Rao Desu, 51, of Warren was charged by indictment with two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns. Desu was arraigned before U.S. District Judge Michael A. Shipp in Trenton federal court and pleaded not guilty.

Desu and Darshna Desaia were half owners in DVS Pharma Inc., (Heights Pharmacy), a retail pharmacy in Piscataway where from April 2004 through November 2013 they conspired to conceal from the IRS the cash income that was earned by the pharmacy as part of a cash-skimming scheme, according to documents filed in this case and statements made in court.

Desu also conducted the same scheme at Manvihar Pharmacy (Arthur Avenue Pharmacy) in Bronx, New York, where he was also half owner, according to the report.

Additionally, Desu also filed false corporate income tax returns, IRS Forms 1120S, for both of his businesses from 2004 to 2012 where he failed to disclose all of the cash received, according to the report.

Desai pleaded guilty to conspiracy to defraud the IRS in 2014. Her sentencing is pending.

Desu faces a maximum potential penalty of five years in prison and a $250,000 fine for the conspiracy to defraud the IRS charge. Additionally he could face a maximum potential penalty of three years in prison and a $100,000 fine for assisting and aiding in subscribing to false tax returns.

(Image via Shutterstock)

Have a news tip? Email alexis.tarrazi@patch.com.

Get Patch breaking news alerts sent right to your phone with our new app. Download here.