Monk-turned-billionaire founder of 5-Hour Energy accused of tax abuse

Manoj Bhargava, the Indian American billionaire and founder of 5-Hour Energy, is under investigation by the U.S. Senate Finance Committee and the Internal Revenue Service for alleged tax abuse. Bhargava, who once lived as a monk in India, is accused of gifting a significant stake in his company and hiding Swiss bank accounts to lower his tax bill.

Ongoing investigation: The investigation is part of an ongoing effort to close tax loopholes exploited by the ultra-wealthy. The Senate Finance Committee claims Bhargava transferred a $624 million stake in his energy drink company to Indu Rawat, a Canadian citizen connected to a prominent Indian guru. This move, investigators claim, allowed him to maintain control of his company while reducing his tax liabilities. Bhargava later bought back the stake using an IOU, which has drawn scrutiny from U.S. tax authorities.
The “zero-profit” entrepreneur: Bhargava, 71, amassed his fortune after creating the 5-Hour Energy drink, following a period of his life spent as a monk in India. He has a history of philanthropy, donating hundreds of millions of dollars to various causes. His alleged illegal activities came to light after Swiss banks were pressured to disclose client information. Bhargava, who has insisted he operates a “zero profit” business model, maintained through his spokesperson that he is compliant with all tax laws and regulations.

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