West Virginia Gastroenterologist Sentenced to 41 Months for Multi-Million Dollar Payroll Tax Fraud and Obstruction

Dr. Nitesh Ratnakar of Elkins, West Virginia, was sentenced for withholding $2.5M in employee payroll taxes and attempting to obstruct federal investigators.

By: AXL Media

Published: Mar 18, 2026, 4:39 AM EDT

Source: Information for this report was sourced from WDTV

A Substantial Breach of Professional Trust

The federal judiciary has concluded a high profile tax evasion case involving a prominent West Virginia medical practitioner. Nitesh Ratnakar, who operated both a gastroenterology clinic and a medical equipment manufacturing firm in Elkins, was sentenced Tuesday to 41 months in federal prison. The sentencing follows a comprehensive investigation into his business practices, which revealed a systematic effort to divert funds intended for the federal government into his own operations. U.S. Attorney Matthew Harvey emphasized that the doctor’s actions constituted a direct theft from the public treasury and honest taxpayers.

Systematic Diversion of Employee Payroll Taxes

The core of the criminal activity involved the illegal retention of payroll taxes from 2020 through 2022. According to federal officials, Ratnakar accurately withheld the required tax amounts from his employees' paychecks, ensuring that his staff believed their tax obligations were being met. However, instead of transferring these funds to the IRS, Ratnakar kept the money, totaling $2,419,560. This scheme effectively used his employees' earnings as an interest free, unauthorized loan to fund his various business ventures, leaving the federal government with a multi million dollar deficit.

Attempts to Mislead Federal Investigators

The case against Ratnakar was further complicated by his efforts to derail the inevitable audit and investigation into his finances. Beyond the 41 counts of tax fraud, the doctor was convicted of one count of obstruction of justice for attempting to cover up his financial discrepancies. Prosecutors presented evidence showing that Ratnakar generated false documents and fabricated tax returns to present to investigators during the probe. This calculated attempt to deceive federal agents was a significant factor in the severity of the final prison sentence handed down by the court.