Damian Williams, United States Attorney for the Southern District of New York, Thomas Fattorusso, Special Agent in charge of the Internal Revenue Service – Criminal Investigation (“IRS-CI”) Field Office in New York, and Keith Kruskall, Agent Acting Special in The New York office of the Drug Enforcement Administration (“DEA”) prosecution, today announced that the accused JORDAN SUDBERG has pleaded guilty to tax evasion for the 2015 to 2017 calendar years, in link to false deductions from a scheme involving his issuing hundreds of commercial checks falsely claiming to be payments for commercial services, which he provided in exchange for cash to a money exchange network in the marketplace black. As part of its plea, SUDBERG agreed to pay $ 551,660 in restitution to the Internal Revenue Service (“IRS”) and lose an additional $ 243,257. SUDGERG pleaded guilty today before U.S. District Judge Paul A. Crotty.
US Attorney Damian Williams said: “As he admitted in court today, Jordan Sudberg has been engaged for years in fabricating bogus business expenses to conceal much of his substantial income from the IRS. learned from his medical practices. He fraudulently claimed over $ 1 million in deductions that should have been reported to the IRS as taxable income, and allowed other people to create a supposedly legitimate origin for their illicit money in the process. Now Sudberg awaits conviction for his crime.
The special agent in charge of IRS-CI, Thomas Fattorusso, said: “Health professionals should look after people, not evade taxes. IRS-CI agents are specially trained to detect tax evasion – even elaborate schemes like the one Sudberg allegedly devised. “
DEA Acting Special Agent Keith Kruskall said: “This defendant is said to have engaged in a scheme in which he deliberately claimed a significantly lower income to evade US tax law. Thanks to the dedication of our law enforcement partners, the accused will finally pay their fair share.
According to the allegations contained in the information to which SUDBERG pleaded guilty, a civil forfeiture complaint filed against funds seized from SUDBERG, a criminal complaint and information filed against SUDBERG’s co-conspirator, Hua Fen Bi, and statements made in court:
From at least 2015 to 2017, SUDBERG devised and perpetrated a ploy to evade a substantial portion of its personal income taxes. During this period, SUDBERG owned two S-corporations through which it operated a medical practice, specializing in pain management, in locations in Manhattan, Long Island and Queens, New York. SUDBERG has issued hundreds of checks made payable to various companies and falsely claiming to be payments for business services. Indeed, these companies had not provided any commercial service to the SUDBERG companies. In exchange for the checks, SUDBERG received cash amounts equal to the value of the checks less a nominal fee. SUDBERG falsely reported to the IRS that the checks were for legitimate business expenses and claimed deductions from the amount of the checks, significantly underestimating his taxable income.
SUDBERG’s tax evasion helped support an unlicensed money services network operated by a number of co-conspirators, including Hua Fen Bi, who was convicted by U.S. District Judge Colleen McMahon on May 24, 2021, for his role in a conspiracy to operate an unlicensed money transmission network. Business. This network allowed individuals to exchange cash for commercial checks such as those provided by SUDBERG, thus generating a bogus and nominally legitimate source of funds, including for drug laundering.
SUDBERG pleaded guilty to one count of tax evasion, carrying a maximum sentence of five years in prison. The maximum legal sentence is prescribed by Congress and is provided here for informational purposes only, as any conviction of the defendant would be determined by the judge.
SUDBERG is to be sentenced on February 23, 2022.
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Mr. Williams praised the remarkable work of the Internal Revenue Service and the Drug Enforcement Administration on this matter. He also thanked the Office of the Inspector General of the United States Department of Health and Human Services and the Anti-Drugs Task Force in New York for their support and assistance.
The prosecution of this case is overseen by the Bureau’s Money Laundering and Transnational Criminal Enterprises Unit. Deputy US prosecutors Emily Deininger and Alexandra Rothman are in charge of the case.