N.J. Accounting Professor Convicted of Tax Evasion

By Matthew Enuco
nj.com
(TNS)

A Drexel University accounting professor was convicted on all eight counts of tax evasion and filing false tax returns Thursday, U.S. District Attorney Philip R. Sellinger announced Friday.

Gordian A. Ndubizo, 69, of Princeton Junction, was convicted by federal jury in Trenton Thursday of four counts each of tax evasion and filing false tax returns between 2014 and 2017, officials said.

Ndubizo was accused by authorities of maintaining a false set of books in a separate business he was associated with and avoiding approximately $1.25 million in income taxes on about $3.28 million in income.

Besides teaching accounting at Drexel University in Philadelphia between 2014 and 2017, officials said Ndubizo was a co-owner of Healthcare Pharmacy in Trenton which was registered as an S corporation whose income flowed directly to Ndubizo and his wife and should have been reported on their personal income tax returns.

Authorities said Ndubizo created a fraudulent set of books and records for Healthcare Pharmacy that inflated the costs of goods sold in order to reduce the pharmacy’s profits flowing directly to Ndubizo and his wife.

The phony books made certain wire transfers appear as payments to purchase goods when in reality the money was wired to accounts controlled by Ndubizo as well as to bank accounts in Nigeria associated with an auto company under Ndubizo’s control, prosecutors said.

For each of the four years authorities accused Ndubizo of maintaining false books, authorities said he also lied about having any authority or interest in foreign bank accounts.

In total, Ndubizo failed to pay taxes on around $3.28 million in income between 2014 and 2017, authorities said.

A spokesperson for Drexel University said Ndubizu has been on administrative leave since 2022.

“In accordance with federal privacy law and the University’s standards for protecting the privacy of its employees, Drexel does not comment on personnel matters,” the university said in a statement to NJ Advance Media. “Reports of misconduct or illegal activity on the part of Drexel employees are investigated by the University under its personal conduct policy and any individuals found responsible for misconduct are subject to appropriate sanction under Drexel’s conduct policy, which could include termination of employment.”

Ndubizo was charged by federal authorities in May 2022, but settled separate allegations of over billing Medicaid with state authorities months before in March.

As part of the settlement with the New Jersey Comptroller’s Office, Ndubizo agreed to return over $280,000 in Medicaid funds.

His attorneys did not immediately respond to a request for comment Friday.

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