New York, U.S.:  A US federal court has permanently barred Ramesh Sarva, an Indian-American certified public accountant in New York, from promoting and selling an alleged illegal nationwide tax scheme.

Judge Josephine L. Staton of the US District Court for the Central District of California, entered the permanent injunction order, to which Sarva of Little Neck, New York, consented, Westmorelandtimes.com reported citing the Justice Department.

According to the complaint, Sarva has been promoting illegal life insurance welfare benefit plans.

These allegedly illegally permitted his customers to both claim substantial tax deductions for their plan contributions and later access the full cash value of their plan contributions by taking out loans against the life insurance policies purchased.

The complaint alleged that Sarva's promotion of these unlawful welfare benefit plans deprived the US treasury of significant amounts of tax and subjected his customers to audits and IRS scrutiny.

The injunction order bars Sarva from promoting and selling any purported welfare benefit plans.(IANS)