In a surprising turn of events, Gregory Gumucio, the founder of the popular yoga chain “Yoga to the People,” has pleaded guilty to tax evasion in a New York federal court. This admission comes after he failed to pay over $2.5 million in taxes between 2012 and 2020.
A Troubling Admission
During the court proceedings on Friday, the 63-year-old entrepreneur expressed remorse for his actions. Gumucio is facing a potential five-year prison sentence, the maximum for his charge of conspiracy to defraud the IRS. He has been released on bail and is scheduled for sentencing on January 16, 2024.
The Business Behind the Brand
Gumucio’s yoga business was quite successful, generating over $20 million in revenue across approximately 20 locations in the United States, including major cities like San Francisco, Orlando, and several areas in Colorado. The brand even expanded internationally with studios in Spain and Israel before closing its doors four years ago.
The Mechanics of Evasion
In court, Gumucio revealed that he paid yoga instructors in cash and failed to issue tax forms, which contributed to his decision not to file tax returns. He admitted, “I deliberately did not file tax returns to avoid paying taxes.” This deliberate evasion has now caught up with him.
Legal Troubles and Personal History
Gumucio’s past is checkered with legal issues; he has been arrested 15 times and has used multiple aliases and Social Security numbers. Despite this, he was released on a $250,000 bail after being arrested two years ago.
Acknowledgment of Responsibility
In his court appearance, Gumucio agreed to repay the IRS $2.56 million, plus interest. He stated, “I apologize for that,” referring to his failure to pay taxes while operating his yoga studios.
Moving Forward
As he left the courthouse, Gumucio kept his head down, avoiding cameras and declined to comment further on the situation. His case serves as a reminder of the importance of financial responsibility, even in the wellness industry.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.