NEW YORK (WCBS 880) — A Long Island pain management doctor on Tuesday admitted to claiming more than $1 million in fraudulent tax deductions by using false checks he wrote to a black market money exchange network.
Jordan Sudberg, who owned two S-corporations through which he operated a medical practice in Manhattan, Queens and Long Island, pleaded guilty to one count of tax evasion in federal court, according to Department of Justice officials.
According to the criminal complaint, Sudberg formulated his scheme to evade a substantial portion of his personal income taxes between 2015 and 2017.
During that time, Sudberg issued hundreds of checks made payable to various companies and falsely reported the checks to be for business services, authorities said. However, the companies had not performed any services for Sudberg’s corporation.
Instead, Sudberg would give the checks to a black market money exchange network and receive sums of cash that were equal to the value of the checks, minus a small fee.
Sudberg then falsely reported to the IRS that the checks were for legitimate business expenses and claimed deductions in the amount of the checks, dramatically understating 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 sentenced in May.
“As he admitted in court today, Jordan Sudberg engaged in a years-long pattern of fabricating false business expenses to conceal from the IRS large portions of his substantial income earned from his medical practices,” said U.S. Attorney Damian Williams. “He fraudulently claimed more than $1 million in deductions that should have been reported to the IRS as taxable income and allowed other individuals to create purportedly legitimate origin for their illicit cash in the process.”
In addition to his guilty plea, Sudberg has agreed to pay $551,660 in restitution to the IRS and forfeit an additional $243,257.
He is due to be sentence on Feb. 23, 2022 and faces a maximum penalty of five years in prison.
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