Leaders of Multi-Million Dollar International Yoga Group Arrested for Tax Fraud: Feds

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Leaders of Multi-Million Dollar International Yoga Group Arrested for Tax Fraud: Feds
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Three leaders of a multimillion-dollar international yoga network, “Yoga to the People,” which closed down amid reports it operated like a cult, were arrested for failing to pay federal taxes while they lived lavishly, authorities in New York announced.

They said the trio enjoyed extravagant lifestyles, including frequent foreign travel, NFL season tickets, horse lodging, along with expensive meals and clothing.

Gumucio, according to a government release, “targeted and groomed typically young women and others to become nominee ‘owners’ of studios, luring them with the title of studio owner when, in fact, he generally controlled business decisions, took a cut of their proceeds, and the nominees generally took on meaningful financial risk.”

Less than two weeks later, New York magazine published its own piece, saying former employees had described the yoga group as cult-like, saying that “behind the company’s shiny, friendly facade was a dark and dysfunctional workplace built on secrecy and manipulation.” “As alleged, the defendants operated a lucrative nationwide yoga business, which brought in over $20 million and netted them each substantial sums, permitting them to live lavish lifestyles. Yet the defendants chose not to file tax returns, or pay income taxes, for at least seven consecutive years,” he said.

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