Founder of “Yoga to the People” Sentenced to Four Years for Tax Fraud

Jack Utermoehl

September 8, 2025

Gregory Gumucio, the founder of the former nationwide studio network “Yoga to the People,” was sentenced today to four years in federal prison after pleading guilty to conspiring to defraud the Internal Revenue Service by failing to report and pay taxes on millions in studio revenue between 2012 and 2020. The court also ordered Gumucio to pay roughly $2.7 million in restitution.

The charges stemmed from an investigation showing that Gumucio and co-conspirators underreported income and hid funds from taxing authorities while the chain expanded to multiple U.S. cities and generated millions in gross receipts. Prosecutors said the scheme involved false filings and improper corporate accounting that materially reduced the studios’ reported tax obligations. Gumucio pleaded guilty to one count of conspiracy to defraud the United States, admitting the core facts in open court before the sentence was imposed.

U.S. attorneys characterized the case as an example of how rapid growth and mission-driven branding do not excuse ordinary legal obligations. The sentencing judge highlighted the scale of unpaid taxes and ordered restitution to make victims and the government whole to the extent possible. The sentence also included reporting and supervised-release conditions following incarceration.

Context and Background

Yoga to the People grew from a single donation-based studio into an influential chain operating roughly 20 locations before closing; its model emphasized accessible pricing and community classes. The business’s rapid expansion created complex financial flows that later drew scrutiny.

The plea and sentence follow an extended investigation by federal authorities into tax reporting, payroll practices, and related corporate governance. The restitution order, approximately $2.7 million, reflects assessed tax deficiencies plus related penalties and interest.

Court Framing (paraphrased)

Prosecutors argued that the scheme was not a bookkeeping error but an intentional plan to conceal income; the judge’s sentence emphasized deterrence and the need for accountability where public trust is part of the brand. (See trial filings and DOJ press materials for full language.)

Ethical Note: Asteya (non-stealing)

asteya (non-stealing) (Sanskrit) means not taking what is not freely given: materially, emotionally, or socially. In practice it asks us to respect others’ resources, acknowledge value honestly, and avoid benefiting from concealment or unfair advantage.

Regardless of personal feelings about taxation, the culturally agreed standard in civic life is that taxes fund shared goods and obligations. From an asteya perspective, evading taxes or hiding revenue is a breach of trust: it takes from the community and weakens the social infrastructure.

I recommend three practical actions studios and teachers can take to honor asteya and protect their communities:

  1. Separate and document finances. Keep clear, separate books for personal and business funds. Use regular accounting and annual audits where appropriate.
  2. Be transparent about money. Publish pricing, donation, and revenue-use policies so students, donors, and partners understand how funds are handled.
  3. Use expert support. Retain a qualified CPA and legal counsel for multi-state operations, payroll classification, and tax compliance.

These steps are practical acts of ethical care. When we align finances with asteya, we protect students, teachers, and the long-term mission of accessible practice.

Implications for the Yoga Community and Businesses

1. Ethical governance matters. Mission-driven models, especially donation-based or low-cost access initiatives, can attract public goodwill, but goodwill does not remove legal duties. Sound accounting and transparent financial practices are essential to sustain trust and avoid personal liability.

2. Board and management oversight are not optional. Studios that scale must install independent financial controls: regular audited statements, qualified CFO or controller oversight, and external tax counsel. Leaders who blur personal and corporate finances increase systemic risk.

3. Reputation recovery is possible but costly. Brands tied to misconduct must commit to rigorous remediation—full restitution where required, governance reforms, and transparent community communication—to rebuild trust.

Recommended Actions for Studio Owners

  • Use a certified public accountant (CPA) familiar with multi-state studio operations.
  • Institute quarterly reviews of payroll, contractor classification, and revenue recognition.
  • Adopt clear reporting lines separating operational leadership from personal finances.
  • When partnering with donors or running donation-based classes, document flows and counsel with tax advisors to avoid misclassification.

Why This Story Matters

This case is a lesson in the ethical cost of scaling without discipline. It reminds us that access and service must be matched by stewardship and lawfulness. For students and practitioners who trusted a brand’s promise of community, the legal consequences cut far deeper than balance sheets, they affect access, teacher livelihoods, and public confidence in accessible yoga studio models.

Sources

Back to blog
1 3
View all

Browse Asivana Yoga Products

1 4