Date: January 16, 2020
DAVENPORT, IA — On January 15, 2020, Narinder Kumar from Bettendorf, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to six months in prison after pleading guilty to Failure to Pay Employment Taxes, announced United States Attorney Marc Krickbaum. Kumar was ordered to serve three years of supervised release, pay a $10,000 fine, and a $100 special assessment to the Crime Victims' Fund. Kumar was also ordered to pay $721,394.34 in restitution, which has been paid in full.
In July 2014, Kumar was responsible for paying withheld employment taxes on behalf of Jai Mata Lakshmi, doing business as Embers of Phoenix. Jai Mata Lakshmi operated two businesses at the same Davenport location – Echelon Sports Bar and Embers of Phoenix. In violation of federal tax laws, Kumar willfully failed to pay the second quarter 2014 withheld employment taxes due on behalf of Jai Mata Lakshmi. In total, Kumar admitted from 2010-2016, he was responsible for paying employee withholding taxes for Bettendorf Pediatric, Echelon Sports Bar, Embers of Phoenix, and Funky Desi, and failed to pay $461,390 in taxes. These businesses also failed to pay $260,004.16 in Social Security taxes and Medicaid.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division and prosecuted by the United States Attorney's Office for the Southern District of Iowa.