In a major blow to the reputation of the international yoga community, Gregory Gumucio, the founder of the popular yoga chain Yoga to the People, has been sentenced to four years in federal prison. The sentencing took place in Manhattan federal court where Judge John P. Cronan presided over the case. Gumucio, aged 64, is a resident of Colorado Springs, Colorado. The judgment came as a result of his guilty plea to conspiracy to defraud the IRS, admitting that he had evaded more than $2.5 million in taxes over a period spanning eight years, from 2012 to 2020.
The Hidden Truth Behind a Popular Yoga Empire
Gumucio’s yoga chain, Yoga to the People, gained popularity for its unique donation-based model. The idea was to make yoga affordable and accessible to everyone, regardless of income or social status. The chain had built a strong community of followers, attracting yoga lovers from all walks of life. With nearly 20 locations in the United States, including cities like San Francisco, Berkeley, Oakland, Tempe, Orlando, and various parts of Colorado and Washington, the business saw remarkable expansion.
What made the brand stand out was its low-barrier approach to wellness. Classes were offered on a pay-what-you-can basis, and instructors worked in sync with the community model. However, as it turns out, the business was far from transparent. Behind the scenes, Gregory Gumucio was hiding millions in revenue, avoiding taxes, and withholding employee payments.
An International Brand Built on Fraud
By the time the business shut down in 2020, it had expanded beyond the U.S. borders. Studios were operating in Spain and Israel, and plans were in motion to expand to other international locations. According to court documents, Yoga to the People had generated over $20 million in revenue. Despite this tremendous success, Gumucio failed to pay taxes and even refused to file personal and corporate tax returns.
The scheme was meticulously planned. Gumucio ensured that the business operated mostly in cash, which made it difficult for tax authorities to trace revenue. He never centralized the company’s financial system and avoided leaving paper trails that could connect his business earnings to the Internal Revenue Service (IRS). Employees were paid off the books, and no payroll taxes were submitted. The yoga empire was built not only on flexible yoga poses but also on a rigid commitment to evading the law.
A Long History of Deception and Aliases
When Gumucio was arrested two years ago, it shocked the wellness industry. Further revelations painted an even more troubling picture. According to prosecutors, Gumucio had been arrested 15 times previously. More disturbingly, he had used at least six aliases, three Social Security numbers, and claimed three different places of birth in official documents. These facts clearly illustrated that Gumucio was not just a first-time offender; he had been living a double life, crafting an identity that suited his goal of avoiding accountability.
His years of evading the law and changing identities made it even more difficult for authorities to track the true scale of his financial fraud. It took significant effort and investigation by the IRS and federal prosecutors to finally bring him to justice. His arrest marked the end of a decade-long charade, where a man who preached spiritual purity was engaged in systematic financial deceit.
IRS and Prosecutors Speak Out
After the sentencing, U.S. Attorney Jay Clayton issued a public statement criticizing Gumucio’s actions. He said, “Gregory Gumucio built a profitable yoga empire and lived well off its success — but he refused to pay his taxes. This case shows that no matter how successful you are, you cannot hide from your responsibilities to pay your fair share.”
The IRS, too, emphasized the importance of financial accountability. Tax fraud affects the entire system and undermines the integrity of public services. Gumucio’s decision to evade taxes for almost a decade meant that millions of dollars which could have been used for infrastructure, education, and healthcare were instead pocketed illegally.
The Court’s Verdict and Financial Penalty
In addition to the four-year federal prison sentence, Judge Cronan ordered Gumucio to pay $2.7 million in restitution to the IRS. The financial penalty was set higher than the original $2.5 million he had avoided paying, as it also included interest and penalties.
The judge made it clear that Gumucio’s actions were deliberate and consistent, not accidental or due to negligence. After completing his prison term, Gumucio will face strict supervised release, and any future financial ventures will likely be monitored closely by federal agencies. His ability to run a business in the future could be severely restricted, especially in positions that involve financial decision-making.
The Downfall of Yoga to the People
Yoga to the People had once stood as a symbol of inclusion and spiritual wellness. It welcomed students of all levels, body types, and backgrounds. The organization claimed to operate without hierarchy and encouraged individual freedom. However, when the business shut down in 2020, reports emerged from former employees about toxic work culture, verbal abuse, lack of transparency, and unpaid wages.
The very ethos that attracted thousands was weaponized against them. Teachers who volunteered or worked for low pay later discovered that their goodwill was being exploited. Some of them even alleged that they were discouraged from discussing pay openly, and there were no proper contracts or HR systems in place. These troubling details only added credibility to the criminal case against Gumucio and revealed a much darker reality beneath the peaceful image of the yoga chain.
Community Reactions: Betrayal and Disillusionment
The news of Gumucio’s sentencing has sent shockwaves through the global yoga community. Many of his former followers, instructors, and students have expressed their deep disappointment and sense of betrayal. Some described the situation as a spiritual scam, while others pointed out the irony of a yoga leader preaching detachment and morality while practicing deception and greed.
A former instructor from the California branch said, “We believed in the mission of Yoga to the People. We wanted to help make yoga accessible. But now it just feels like we were all being used to support a criminal enterprise.”
This sense of betrayal is being echoed in yoga forums, wellness blogs, and news commentaries. The fallout from the case is likely to affect other donation-based yoga businesses as well, which may now face increased scrutiny and pressure to improve transparency.
What Lies Ahead for Gregory Gumucio?
With the sentencing completed, Gregory Gumucio will now begin serving his four-year prison term in a federal facility. Due to the non-violent nature of the crime, he may be sent to a minimum-security federal prison, but the sentence is still a significant mark on his record.
Legal experts suggest that more lawsuits could be filed in the near future by former employees or international partners who may have suffered losses. There could also be attempts by the government to seize remaining assets or uncover hidden income or properties Gumucio might still control.
A Lesson for the Industry
This case sends a powerful message: even businesses built around spirituality and wellness must operate within the boundaries of the law. Transparency, proper accounting, and fair employee treatment are not just corporate requirements — they are moral and legal obligations.
For the yoga and wellness industry, this is a wake-up call. Many yoga studios operate in informal environments with less oversight, but Gumucio’s case shows what can happen when that informality is abused. The need for clear structure, ethical leadership, and legal compliance has never been greater.
The downfall of Gregory Gumucio is more than just the story of tax evasion. It’s a cautionary tale about how charisma and good branding can hide serious criminal activity. It’s a reminder that behind peaceful mantras and flexible poses, business owners must still follow the law.
As the yoga world reflects on this case, one thing becomes clear — true wellness starts with integrity. And without that, even the most promising movements can collapse under the weight of their founder’s lies.
