“Professor guilty of tax evasion and falsifying returns in Mercer”

TLDR:

Key Points:

• Professor Gordian A. Ndubizu convicted of evading taxes and filing false returns
• Ndubizu was convicted on all eight counts, including tax evasion and filing false tax returns

A longtime professor at Drexel University, Gordian A. Ndubizu, was convicted of evading federal income taxes and filing false tax returns. Ndubizu, 69, of Princeton Junction, New Jersey, was convicted on Aug. 15, 2024, of all eight counts of an indictment charging him with four counts of tax evasion and four counts of filing false tax returns in tax years 2014 through 2017. The jury deliberated for two hours before returning the guilty verdict following a four-day trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court.

According to U.S. Attorney Philip R. Sellinger, documents filed in this case and the evidence at trial, during tax years 2014 through 2017, Ndubizu was a professor of accounting at a university in Pennsylvania as well as the co-owner of Healthcare Pharmacy in Trenton, New Jersey. Healthcare Pharmacy was organized as an S corporation, the income of which flowed through to Ndubizu and his wife and was to be reported on their personal income tax returns. Ndubizu prepared fraudulent books and records for Healthcare Pharmacy inflating the pharmacy’s costs of goods sold to reduce and underreport the pharmacy’s actual profits flowing through to Ndubizu and his wife.

In the fraudulent books and records, among other things, Ndubizu identified certain wire transfers as payments to purchase goods sold by the pharmacy when these wire transfers were in fact made to personal bank accounts under Ndubizu’s control and to bank accounts in Nigeria associated with an automotive company under Ndubizu’s control. Each of Ndubizu’s tax returns for tax years 2014 through 2017 falsely underreported his income and falsely reported that he had no financial interest in or signature authority over any foreign bank accounts.

Ndubizu failed to report approximately $3.28 million in income from the pharmacy, resulting in the evasion of approximately $1.25 million in tax due and owing. Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Each count of filing a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000.

A professor of accounting at Drexel University since 1987, Gordian Ndubizu has taught students of all levels, from undergraduates to doctoral students. Before joining Drexel University, Gordian Ndubizu served as an associate professor of accounting at the University of North Texas and as an assistant professor of accounting at Temple University. Alongside his teaching career, Dr. Ndubizu has pursued research interests and published numerous papers in academic journals.