A yoga entrepreneur with a multimillion-dollar business has admitted guilt in a tax evasion scheme, agreeing to pay over $2.5 million to the IRS.
Greg Gumucio, 63, launched Yoga to the People in Manhattan in 2006. This donation-based yoga studio quickly expanded, reaching from New York to California.
From 2010 to 2020, the studio brought in over $20 million, as reported by the U.S. Attorney’s Office for the Southern District of New York. The business shut down in 2020, largely due to the COVID-19 pandemic.
During the years 2012 to 2020, Gumucio earned approximately $3.5 million through classes and popular teacher-training programs. However, he failed to file a personal tax return, accruing over $1 million in owed taxes.
As part of his plea deal, he must pay at least $2,560,300.93 in restitution. He faces the possibility of five years in prison, depending on the judge’s decision.
Gumucio utilized questionable methods that facilitated tax evasion, such as cash payments for classes and compensating teachers in cash—sometimes collected in tissue boxes, according to the court report.
Teachers were instructed not to count the cash received from students, which was then taken to Gumucio’s Manhattan apartment for counting during what were referred to as “stacking parties.” Many workers volunteered their time, teaching free classes and helping with cash management.
Notably, Gumucio lacked a formal headquarters and did not keep proper corporate records.
Gumucio’s co-defendants, Michael Anderson and Haven Soliman, are slated for trial on January 13, 2025. Anderson served as a co-owner and CFO, while Soliman was also a co-owner and held multiple roles within the organization.
Allegations against Yoga to the People have been aired in the past, including claims of racial discrimination and harassment, although not specifically regarding financial misconduct, according to reports from The New York Times and other sources.