Skip to main content
U.S. flag

An official website of the United States government

Here’s how you know

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

  • Who We Are
    • About
    • Mission
    • History
    • Divisions
      • Atlanta
        • Atlanta Leadership
        • Atlanta Contacts
      • Caribbean
        • Caribbean Leadership
        • Caribbean Contacts
      • Chicago
        • Chicago Leadership
        • Chicago Contacts
      • Dallas
        • Dallas Leadership
        • Dallas Contacts
      • Detroit
        • Detroit Leadership
        • Detroit Contacts
      • El Paso
        • El Paso Leadership
        • El Paso Contacts
      • Headquarters
      • Houston
        • Houston Leadership
        • Houston Contacts
      • Los Angeles
        • Los Angeles Leadership
        • Los Angeles Contacts
      • Louisville
        • Louisville Leadership
        • Louisville Contacts
      • Miami
        • Miami Leadership
        • Miami Contacts
      • New England
        • New England Leadership
        • New England Contacts
      • New Jersey
        • New Jersey Contacts
      • New Orleans
        • New Orleans Leadership
        • New Orleans Contacts
      • New York
        • New York Leadership
        • New York Contacts
      • Omaha
        • Omaha Leadership
        • Omaha Contacts
      • Philadelphia
        • Philadelphia Leadership
        • Philadelphia Contacts
      • Phoenix
        • Phoenix Leadership
        • Phoenix Contacts
      • Rocky Mountain
        • Rocky Mountain Contacts
      • San Diego
        • San Diego Leadership
        • San Diego Contacts
      • San Francisco
        • San Francisco Contacts
      • Seattle
        • Seattle Contacts
      • St. Louis
        • St. Louis Leadership
        • St. Louis Contacts
      • Washington, DC
        • Washington Leadership
        • Washington Contacts
    • DEA Museum
    • Foreign Offices
      • Africa
      • Andean
      • Caribbean
      • Europe
      • Far East
      • Middle East
      • North and Central America
      • Southern Cone
    • Operational Divisions
      • Aviation Division
      • Diversion Control Division
    • Wall of Honor
    • Contact Us
      • Submit a Tip
      • Extortion Scam
      • Public Affairs
      • Social Media Directory
  • What We Do
    • Law Enforcement
      • DEA Office of Training
        • Office of Training Programs
      • El Paso Intelligence Center (EPIC)
        • Leadership
        • Mission
        • Services
        • Contacts
      • Forensic Sciences
        • Computer Forensics Program
        • Environmental Management
        • Laboratories
      • Intelligence
      • Operations
        • Administrative Law Judges
        • DEA Asset Forfeiture
        • Domestic Cannabis Suppression / Eradication Program
        • HIDTA
        • OCDETF
        • State and Local Task Forces
    • Education and Prevention
      • DEA’s Family Summit
      • Operation Engage
      • Community Outreach
      • Red Ribbon
        • Kiki and the History of Red Ribbon Week
        • Red Ribbon Toolkit - Resources For Your Community
      • Just Think Twice
      • Campus Drug Prevention
      • Get Smart About Drugs
      • Operation Prevention
    • Drug Information
      • Drug Policy
      • Drug Scheduling
      • The Controlled Substances Act
    • News
      • Alerts
      • Press Releases
      • Most Wanted Fugitives
        • All Fugitives
      • Stories
      • Events
      • Speeches
      • Testimony
    • Campaigns
      • One Pill Can Kill
        • Partner Toolbox
        • Social Media Campaign
      • DEA National Prescription Drug Take Back Day
  • Careers
    • Special Agent
      • Special Agent FAQs
      • Special Agent Job Announcements
    • Diversion Investigator
      • Diversion Investigator Job Announcement
    • Intelligence Research Specialist
      • Intelligence Research Specialist Job Announcements
      • Intelligence Research Specialists FAQs
      • Schedule A Hiring Authority: Intelligence Research Specialist
    • Forensic Sciences Careers
    • Professional & Administrative Careers
    • Student & Entry Level Careers
    • How to Apply
      • Employment Requirements
      • Equal Opportunity Employer
      • How To Claim Veterans' Preference
      • Priority Consideration
      • Benefits
      • Veterans and People With Disabilities
  • Resources
    • Recovery Resources
    • Data and Statistics
      • Domestic Arrests
      • Staffing and Budget
    • FOIA
      • About FOIA
      • Contact DEA FOIA
      • Make a Request
      • What Happens After Making a Request
      • Requester Categories
      • Fees Charged
      • Fee Waiver
      • FOIA FAQ
      • FOIA Logs and Reports
      • FOIA Library
      • Additional FOIA Links
      • FOIA Exemptions
      • What Are Exclusions?
      • Privacy Act
      • Privacy Act Exemptions
      • Privacy Impact Assessment and Management Information Systems
    • Publications
    • Media Galleries
    • Victim Witness Assistance Program
      • Victim Witness Assistance Program Resources

United States Drug Enforcement Administration

  • Search
  • Full Menu

Main Menu

  • Who We Are
  • What We Do
  • Careers
  • Resources
  • Submit A Tip
  • Get Updates
  • Scam Alert
  • English
  • ES

PUBLIC SAFETY ALERT

DEA Reports Widespread Threat of Fentanyl Mixed with Xylazine - DEA Reports Widespread Threat of Fentanyl Mixed with Xylazine

Drug Enforcement Administration

Frank A. Tarentino III Special Agent in Charge
New York
@DEANewYorkDiv
November 23, 2021
Contact:
Phone Number: (212) 337-3900
For Immediate Release

Pain Management Doctor Pleads Guilty To Tax Evasion

Defendant Claimed More Than $1 Million in Fraudulent Tax Deductions for False Business Checks He Provided to a Black Market Money Exchange Network.

NEW YORK - Keith Kruskall, Acting Special Agent in Charge of the New York Office of the Drug Enforcement Administration (DEA), Damian Williams, the United States Attorney for the Southern District of New York (SDNY), Thomas Fattorusso, and Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (IRS-CI) New York Field Office, today announced that defendant Jordan SUDBERG pled guilty to tax evasion for the calendar years 2015 through 2017, in connection with false deductions from a scheme involving his issuance of hundreds of business checks falsely purporting to be payments for business services, which he provided in exchange for cash to a black market money exchange network. As part of his plea Sudberg agreed to pay $551,660 in restitution to the Internal Revenue Service (“IRS”), and forfeit an additional $243,257. Sudberg pled guilty today before U.S. District Judge Paul A. Crotty.

DEA Acting Special Agent in Charge Keith Kruskall said: “This defendant allegedly engaged in a scheme where he purposefully claimed a significantly lower income to evade U.S. tax law. Thanks to the dedication of our law enforcement partners, the defendant will finally be paying his fair share.”

U.S. Attorney Damian Williams said: “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. 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. Now Sudberg awaits sentencing for his crime.”

IRS-CI Special Agent in Charge Thomas Fattorusso said: “Medical professionals should be in the business of caring for people, not evading taxes. IRS-CI agents are specially trained to detect tax fraud – even elaborate schemes like the one Sudberg allegedly devised.”

According to the allegations contained in the Information to which Sudberg pled 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 through 2017, Sudberg devised and perpetrated a scheme to evade a substantial portion of his personal income taxes. During that period, Sudberg owned two S-corporations through which he operated a medical practice, specializing in pain management, at locations located in Manhattan, Long Island, and Queens, New York. Sudberg issued hundreds of checks made payable to various companies and falsely purporting to be payments for business services. In fact, those companies had not performed any business services for Sudberg’s corporations. In exchange for the checks, Sudberg received sums of cash that were equal to the value of the checks minus a small fee. Sudberg falsely reported to the IRS that the checks were for legitimate business expenses and claimed deductions in the amount of the checks, thereby substantially 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 by U.S. District Judge Colleen McMahon on May 24, 2021, for his role in conspiring to operate an unlicensed money transmitting business. This network permitted individuals to exchange cash for business checks like those provided by Sudberg, thereby generating a false and nominally legitimate source of funds, including for the laundering of narcotics proceeds.

Sudberg pled guilty to one count of tax evasion, which carries a maximum penalty of five years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Sudberg is scheduled to be sentenced on February 23, 2022.

Mr. Williams praised the outstanding work of the Internal Revenue Service and the Drug Enforcement Administration on this case. He also thanked the Office of the Inspector General of the United States Department of Health and Human Services for their support and assistance.

The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprise Unit. Assistant U.S. Attorneys Emily Deininger and Alexandra Rothman are in charge of the case.

                                                                                      ###

 

SAMHSA Behavioral Health Treatment Locator

  • Who We Are
    • About
    • Domestic Divisions
    • Foreign Offices
    • Contact Us
    • DEA Museum
  • What We Do
    • Drug Prevention
    • Law Enforcement
    • Diversion Control Division
    • News
  • Careers
    • Overview
    • Special Agent
    • Diversion Investigator
    • Intelligence Research Specialist
  • Resources
    • Drug Information
    • Employee Assistance Program
    • Equal Opportunity Employer
    • FOIA
    • Publications
    • Media Galleries
    • VWAP
  • Doing Business
    with the DEA
    • Overview
    • Current Vendors
    • Prospective Vendors
    • Security Clauses
    • Security Forms
    • Small Business Program
  • Policies
    • Accessibility, Plug-ins & Policy
    • Legal Policies & Disclaimers
    • No FEAR Act
    • Privacy Policy
    • U.S. Department of Justice EEO Policy
    • USA.gov
    • Whistleblower Protection
Home

United States Drug Enforcement Administration

DEA.gov is an official site of the U.S. Department of Justice
Facebook Twitter LinkedIn Instagram

DEA Contact Center

(202) 307-1000 info@dea.gov
Contact the Webmaster