New York pain physician out $795K after pleading guilty to tax evasion

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Jordan Sudberg, MD, CEO of Spine and Sports Rehabilitation in Islandia, N.Y., will pay $551,660 in restitution and forfeit $243,257 as part of a guilty plea for alleged tax evasion from 2015-2017, according to a Nov. 23 Justice Department statement.

Dr. Sudberg allegedly claimed more than $1 million in deductions that should have been reported to the IRS as taxable income, according to the statement. Dr. Sudberg's scheme allegedly supported a money laundering business that made drug money and other black market proceeds look legitimate.

The scheme involved Dr. Sudberg allegedly writing hundreds of business checks payable to various companies. The checks were disguised as payments for services provided to two of his companies through which he operated his pain management practice, according to the statement. No such services were provided to Dr. Sudberg's companies, the statement alleges.

In exchange for the bogus checks, Dr. Sudberg allegedly received cash in the value of the checks minus a fee from a money laundering service. Dr. Sudberg allegedly reported the checks as business expenses and claimed deductions in the amount of the checks, substantially understating his taxable income, according to the statement.

 Dr. Sudberg's guilty plea to one count of tax evasion carries a maximum penalty of five years in prison. He is set for a Feb. 23 sentencing.

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