Tax Law Center Blog

Last month, a federal court in New York sentenced Gregory Gumucio, the founder and leader of the popular Yoga to the People (YTTP) studios, to four years in prison for a tax evasion scheme. The scheme, which spanned from 2012 to 2020, resulted in significant unpaid taxes and an order for Gumucio to pay over $2.7 million in restitution to the IRS.

Gumucio established YTTP in 2006, expanding it into a multi-state operation with approximately 20 yoga studios and affiliated entities. Despite generating over $20 million in gross receipts between 2010 and 2020, YTTP consistently failed to file corporate tax returns. As the principal owner and CEO, Gumucio personally received nearly $3.5 million in income during the period of the scheme but neglected to file personal tax returns or pay income taxes for at least eight consecutive years, owing over $1 million in taxes.

To facilitate his tax evasion, Gumucio engaged in several deceptive practices. He deliberately avoided filing both individual and business tax returns and provided false information about his annual income to third parties, including submitting a fabricated tax return to a bank. Meanwhile, Gumucio maintained an extravagant lifestyle, indulging in frequent international travel, stays at expensive hotels, lavish meals, high-end clothing, NFL season tickets, and country club memberships.

In addition to his four-year prison sentence, Gumucio will also serve three years of supervised release. The restitution order of over $2.7 million reflects the actual tax loss to the government, often a key component of sentencing in tax evasion cases.

For more details, see the official IRS press release: Leader of Yoga to the People Sentenced to Four Years for Tax Evasion Scheme