Yoga Business Founder Pleads Guilty to Tax Fraud

The founder of the international yoga chain “Yoga to the People” has admitted to tax fraud, pleading guilty in a New York federal court. Gregory Gumucio, 63, acknowledged that he deliberately avoided paying taxes for nearly a decade, resulting in a tax liability of over $2.5 million.

Gumucio’s yoga business, which operated studios in multiple U.S. states, as well as in Spain and Israel, generated over $20 million in revenue. The company, known for its donation-based classes and accessible approach to yoga, shut down its operations four years ago.

According to the plea agreement, Gumucio admitted to conspiring to defraud the Internal Revenue Service (IRS) by failing to file tax returns and concealing income from 2012 to 2020. He confessed to paying yoga teachers in cash without providing them with proper tax documentation, effectively concealing the true revenue generated by his business.

“I deliberately did not file tax returns to avoid paying taxes,” Gumucio stated in court.

As part of the plea deal, Gumucio has agreed to pay $2.56 million in restitution to the IRS, including interest. He faces a potential maximum sentence of five years in prison and is scheduled to be sentenced in January.

Two other individuals associated with the case are awaiting trial.

Gumucio’s guilty plea highlights the importance of tax compliance, even for businesses operating in unconventional or non-traditional settings. It underscores the IRS’s commitment to pursuing individuals who engage in tax evasion, regardless of their profession or industry.

Key Takeaways:

• The founder of “Yoga to the People” has pleaded guilty to tax fraud, admitting to concealing over $2.5 million in income.
• The case involved failing to file tax returns, paying employees in cash without proper documentation, and operating a business without proper tax compliance measures.
• The guilty plea highlights the importance of tax compliance for all businesses, regardless of their industry or operating model.

This case serves as a reminder that tax evasion has serious consequences, and individuals who engage in such activities will face legal repercussions.