Indian American billionaire and past monk, investigated for tax abuse

Indian American businessman and philanthropist Manoj Bhargava, who was a monk, is now allegedly named as a tax cheat, according to The Wall Street Journal.

Bhargava is known for his 5-Hour Energy caffeine shots, which made him a billionaire. He has given hundreds of millions of dollars to charity and started a lab near his home outside Detroit, where he creates inventions for social welfare. However, the tax authorities in the United States have put him under investigation for tax abuse.

The billionaire has been accused of improperly lowering his tax bill by gifting a $624 million stake in his 5-Hour Energy partnership to a family member of a prominent guru, a Canadian citizen named Indu Rawat, who he befriended during his monk life in India. He then bought it back with an IOU, without ever losing control of the company.

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The Senate Finance Committee claims Bhargava tried to hide his Swiss bank accounts with the help of Rawat, who assisted him with charitable donations to millions in India. Earlier, areport by CNBCclaimed that Bhargava was a target in a Senate committee investigation and could face the largest tax penalties in the US.

Bhargava’s tax evasion activities came to light when the authorities launched a broader probe to crack down on billionaires who evaded tax through charitable donations or front people. His activities were revealed due to the pressure on Switzerland banks and other wealth havens to reveal customer data.

Geneva-based Pictet, one of the main banks Bhargava used, shared information about its wealthy clientele after admitting to hiding around $5.6 billion during an investigation.

Bhargava maintains he practices a “zero profit” business model, making money from the rich and giving it to the poor. His spokesperson said that the Indian American businessmanis focused on philanthropy and his business, and is compliant with laws, tax regulations and Internal Revenue Service (IRS) guidelines.

Who is Manoj Bhargava?

Manoj Bhargava, 71, was born into a wealthy family in northern India in 1953. He moved to Philadelphia,United Statesat the age of 14. He attended Princeton University, however, he dropped out after freshman year in the 1970s to live his life as a monk in India, where he lived for over a decade and followed a prominent guru. There he met the son of guru Mahipal, and his wife, Indu Rawat.

He returned to the US and started his business in chemical solutions and medicine. He became successful after he created the 5-Hour Energy drink.

While most of his inventions failed, he positioned himself as a philanthropist, who donated hundreds of millions he earned from his business to help the ones in need. However, he soon became a part of an investigation by tax authorities.

(With inputs from agencies)