It is widely known that the TANA money siphoning scam by Srikanth Polavarapu has been the talk of the American Telugu community. This scam worth US$ 3.6 Million has reportedly been occurring under his aegis for the past two years.
The shocking question is, how did nobody realize that this scam was happening for such a long time? This is another topic many have been discussing.
The foremost question is why the TANA members didn’t file a case or initiate criminal proceedings against Srikanth Polavarapu when the scam involves an amount as large as $3.6 million. While it is true that he claims he will return the money, that does not absolve him of the crime he has already committed.
Looking back at recent history, some previous heads of the same organization siphoned off $1.5 million. When caught, they promised to return the money but have only repaid $600K so far, with a balance of $900K still pending.
Many people point out that while these individuals promise to return the money, it often does not happen promptly, immediately, or even at all unless the matter is closely tracked and followed up.
The confidence of these scammers lies in the belief that they will not face legal trouble from their own members because exposing one person’s wrongdoing could lead to revelations about others’ misdeeds.
The same could be Srikanth's confidence as well. He is already stating within the group, "Why should I be the only one targeted when the former heads have already done this before?"
However, it is evident that many Telugu associations are being treated like ATMs by their members.
Let us see how this misuse occurs:
Telugu Associations are 501(c) organizations, which means they are nonprofit entities providing a public benefit and are exempt from paying federal income taxes.
So, many NRIs who own businesses or earn substantial income from their professions reportedly donate large sums to Telugu Associations to claim tax benefits. However, their money will be returned in some form or the other without getting into the radar of the IRS.
Here is an example of how they siphon and return the amount.
Every Telugu person typically has a base in India, whether it’s their parents, extended family, or their own establishment. Suppose someone donates a few thousand dollars to the Telugu association’s account in the USA. That amount is then sent to India in the name of donations to certain foundations or charitable organizations.
The money is subsequently recorded as being used for a charity activity and is then funneled back to the person who initially donated it in the USA, within India for his establishment.
This entire process is designed to bypass the tax system. Such actions constitute money laundering, but this is exactly what is happening.
Surprisingly, no whistleblower has filed a complaint with the IRS regarding this, likely because many individuals are complicit in the crime.
A trust is supposed to earn the trust of the community. In this case, how can anyone trust these organizations? Some individuals with vested interests are reportedly vying to contest these Telugu Association elections solely for this purpose. Many treat these organizations as a money-making machine.
Although many Telugu Associations were started with noble intentions and ran successfully for years under its early members, its reputation has been severely damaged under the leadership of greedy individuals in modern times.
Only time will tell whether the associations will recover and rebuild their image or meet the same fate as NATA, which shut down.
Shobhanadri Iragavarapu
