Warren Man, Owner Of Pharmacies Sentenced In Cash-Skimming Plot

WARREN, NJ — A Warren local and owner of several retail pharmacies, including one in Piscataway, was sentenced to 30 months of prison for trying to hide income from the IRS as part of a cash-skimming scheme, U.S. Attorney Craig Carpenito announced.

Rao Desu, 53, of Warren, was sentenced on Wednesday on two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns, following a two-week trial before U.S. District Judge Michael A. Shipp.

In addition to the prison term, Desu was sentenced to two years of supervised release, fined $15,000, and ordered restitution of $459,075.

Desu and Darshna Desaia were half owners in DVS Pharma Inc., (Heights Pharmacy), a retail pharmacy in Piscataway. 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 did 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 and is awaiting sentencing.

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