Yoga Studio Founder Pleads Guilty to Tax Evasion, Faces 5 Years in Prison

Yoga Studio Founder Admits to Tax Evasion, Faces 5 Years in Prison

The founder of an international yoga business, known as "Yoga to the People", pleaded guilty on Friday to a tax charge in a New York federal court. Gregory Gumucio, 63, of Colorado, admitted to not paying over $2.5 million in taxes from 2012 to 2020.

Gumucio apologized for his actions and reached a plea agreement with prosecutors, which calls for a sentence of about five years in prison, the maximum sentence he could face. He is scheduled to be sentenced on January 16th.

Gumucio's business, which generated over $20 million in revenue, had studios in multiple U.S. cities, including San Francisco, Berkeley, Oakland, Tempe, Orlando, and various locations in Colorado and Washington. The chain also had studios in Spain and Israel and was expanding to other countries when it closed four years ago.

During the court proceedings, Gumucio acknowledged that he had agreed to pay $2.56 million in restitution to the IRS, along with interest. He admitted to deliberately not filing tax returns to avoid paying taxes, stating that yoga teachers were paid in cash and he did not provide them with tax forms.

Two other defendants are awaiting trial in the case.