Indian-Origin Chicago Doctor Krishnaswami Sriram Sentenced to 34 Months for $1.6M Tax & Medicare Fraud

An Indian American doctor, Krishnaswami Sriram from Lake Forest, Illinois, USA has been sentenced to 34 months in federal prison for evading taxes of $1.6 million and committing medical fraud on 20 August, 2025.

During the course of five years, Sriram evaded the payment of $1.6 million that he owed to the IRS. Krishnaswami Sriram, who is a resident of Lake Forest, Illinois, also practiced other frauds to evade taxes.

The court reports indicated that Sriram transferred the ownership of two of his rental properties to his children’s names without their knowledge. He received all the income from the two rental properties after transferring the ownership in name only.

Sriram transferred huge amounts of money from his U.S. based bank accounts to Indian accounts. He transferred approximately $700,000 to his Indian bank accounts. Among other evasive frauds, Sriram misrepresented the total money that he owed to the Internal Revenue Service.

In order to reduce the money he owed to the IRS, Sriram submitted some documents to the U.S. revenue service as part of an “offer in compromise.” An offer in compromise is a type of agreement made between the taxpayer and the IRS in which tax debt is settled for less than the actual money owed.

An offer in compromise is sought when paying the entire tax amount can lead to financial hardship for the taxpayer.

Sriram omitted the details of assets he owned, such as his investment account in the United States, bank and investment accounts in India, and ownership of rental properties. Thus, the Indian-origin physician caused a loss of around $1.6 million to the IRS.

Indian-origin physician Krishnaswami Sriram specializes in Clinical Cardiac Electrophysiology. He also committed Medicare fraud between 2011 and 2022. He made false Medicare billings under the pretext of an in-home physician care facility that did not take place.

He claimed to provide Medicare beneficiaries to individuals on dates when they were either deceased or not at their home. The fraudulent billings to Medicare amounted to a total of $136,980.36.

The court has ordered Krishnaswami Sriram to pay approximately $1.7 million to the United States. Along with this, the court has directed Sriram to serve three years of supervised release.

The complaint was followed by civil penalties and treble damages under the False Claims Act. It also sought to freeze Sriram’s assets, stating that they were "assets that are the product of, or profit on the product of, his fraud." 

On the following day, August 16, 2000, the district judge issued a temporary restraining order against Sriram to restrict him from engaging in any fraudulent activity in the future. The restraining order also froze his assets, including his bank accounts and pieces of real estate property that he owned at the time, which had a collective value of around $4 million.

NewsGram checked the status of doctor  Krishnaswami Sriram's  medical license ( also called physician license) on an Illinois state website called Illinois Department of Financial and Professional Regulation—that regulates the licensing of various professions. The check on IDFPR website revealed that the license has been suspended.

(Inputs from 5WH)

(NewsGram/VK)