Fake charity, real tax evasion, wealthy monk pretending to be -Robin Hood- may receive the largest fine in history
Indian-American billionaire Manoj Bhargava, known for his bold pledge to donate 99% of his fortune to help the poor, is now facing scrutiny from the IRS for allegedly using charity as a facade for tax evasion. Reports suggest he might be staring down the largest tax penalty in U.S. history.
According to the Wall Street Journal, Bhargava was born in northern India in 1953 and moved to Philadelphia with his father at the age of 14. He attended Princeton University but dropped out after his freshman year, feeling inspired by 19th-century Hindu teachings, which prompted him to return to India.
While in India, Bhargava became a disciple of the late spiritual leader Hans Ram Singh Rawat and formed close friendships with Rawat’s family, including his son Mahipal and his daughter-in-law Indu.
After returning to the U.S., Bhargava launched the highly successful energy shot “5-Hour Energy,” which has generated annual sales of billions and helped him amass a fortune estimated at $4 billion.
In an effort to improve the lives of the impoverished, Bhargava decided to pursue philanthropy, transferring shares worth $445 million to Indu Rawat and purchasing a $5.7 million home in New Jersey for the Rawat family.
Additionally, Bhargava established labs focused on public welfare inventions, adopting a “zero profit” model to expand his commercial endeavors. He emphasized a Robin Hood approach, claiming to take from the rich to give to the poor. However, the IRS investigation uncovered that this strategy was merely a loophole for tax avoidance.
The IRS alleges that Bhargava donated shares worth $624 million in his joint venture “5-Hour Energy” to a charity in order to lower his tax liability but never relinquished control of the enterprise.
Furthermore, the investigation is looking into whether Bhargava utilized the Canadian citizen Indu Rawat to conceal assets from the IRS, effectively protecting his wealth from taxation.
At 71, Bhargava is also accused of hiding money in Swiss banks through this same front. Senator Ron Wyden, Chairman of the Senate Finance Committee, indicated that if the evidence supports these claims, Bhargava could face the highest tax evasion penalties in American history.
In his defense, Bhargava has stated, “We feed nearly a million impoverished children daily, cover medical costs for the needy at over a dozen hospitals, and provide water and energy to the bottom third of the global population. I firmly believe in the principle that good deeds will be rewarded.”
