Long Island 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.

 Damian Williams, the 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”) New York Field Office, and Keith Kruskall, Acting Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), 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.  SUDGERG pled guilty today before U.S. District Judge Paul A. Crotty. 

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.”

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.”

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 and the New York Drug Enforcement Task Force for their support and assistance. 

Attorney General James Shuts Down Illegal Debt Collection Businesses, Recovers $1.2 Million

 

Collectors Made Unlawful, False, and Deceptive Threats to Consumers to Collect Debt

AG James Encourages New Yorkers Who Fell Victim to These Deceptive Debt Collectors to File a Claim

 New York Attorney General Letitia James announced she is shutting down an illegal debt collection scheme operating in western New York and recovering $1.2 million in penalties and restitution for victims. An agreement with Buffalo-based debt collector Andrew Fanelli and his companies — Northwood Asset Management Group LLC, Pinnacle Asset Recovery Group LLC, and Koalaty Pay LLC — permanently bans them from any future consumer debt collection. Collectors working for Fanelli’s companies routinely used illegal tactics to collect consumer debt, including false threats of criminal action, wage garnishment, driver’s license suspension, and lawsuits. 

“New Yorkers can trust that I will always stand up for our most vulnerable, especially when their wallets are at risk,” said Attorney General James. “While illegal debt collectors have used Buffalo as their hub of operations for illicit conduct for years, we are continuing to fight back and shut down these companies one by one. The unlawful behavior perpetrated by Andrew Fanelli and his companies defrauded consumers, but this agreement will end their illegal behavior, once and for all. I encourage anyone who may have fallen victim to these deceptive debt collectors to immediately file a claim with our office to recover what was unlawfully taken from them.”

Fanelli began his debt collection career collecting debts for Douglas MacKinnon, an illegal debt collection kingpin shut down by Attorney General James in 2019. His company operated as Fanelli and Associates, later changing its name to Northwood Asset Management Group. Fanelli also used another one of his companies, Pinnacle Asset Recovery, to purchase consumer debt. Call recordings obtained by the Office of the Attorney General (OAG) revealed that collectors working for Fanelli routinely used deceptive and illegal threats to collect on consumer debts.

Fanelli also operated as a debt broker, selling debts to and placing debts for collection with other collectors that engaged in egregious violations of the law. For example, Fanelli placed debts with Kenneth Thomas’s company, Midway Resolution Services LLC, which defrauded and harassed consumers by using call spoofing and impersonating government officials to collect debts. Thomas and his company were sued by the OAG in September 2020 and have since been shut down and have been banned from the debt collection industry. Fanelli also operated Koalaty Pay LLC, a business that helped other illegal debt collectors obtain payment processing services.

This agreement permanently bans Fanelli and his companies from engaging in consumer debt collection, consumer debt brokering, consumer lending, debt settlement, credit repair services, and payment processing. Within six months, Fanelli is required to dissolve all of his companies.

The agreement also requires Fanelli and his companies to pay $1.2 million to the OAG in restitution and penalties.

Any consumer who was the subject of false and illegal threats by Northwood Asset Management Group may be entitled to restitution and should promptly file a complaint with the OAG’s Buffalo Regional Office. 

MAYOR DE BLASIO, POLICE COMMISSIONER SHEA DELIVER REMARKS AT THE MACY’S THANKSGIVING DAY PARADE BALLOON INFLATION

 

Mayor Bill de Blasio: This really one of the very best things that happens all year in New York City. And I want to thank everybody at Macy's. You are amazing partners. Jeff, I’ve got to tell you, you and your team, you do so much for New York City. I want to thank you for that. And this is a labor of love every year. It's such a beautiful thing. So, listen, these balloons, just for people to come and see them pumped up, the families come out, kids come out, it's absolutely beautiful. And then, the parade itself is one of the best moments of the whole year. And it is also a moment where the whole nation looks to New York City and sees the greatness of all New Yorkers and this place on display. It’s a very proud moment every year for New York City. And it's especially proud after what we've been through the last couple of years.  

 

It is beautiful to have this parade back full strength. It's going to be a magical, magical moment. The weather is cooperating. I’m knocking on wood. The weather is cooperating for tomorrow, so it's looking good all around. And we have amazing balloons. And every year, there's new, exciting balloons. And so, for everybody – this is going to be something for everyone, literally. And it's going to be safe. You're going to hear from the Commissioner in a moment. It's going to be safe, because the NYPD is going to be out in force. The plans are fantastic. And we're happy to report, everything is going very, very smoothly. It's going to be safe because, people have gone out and gotten vaccinated in this city in a way that surpasses almost every place else in the country. It's something to be proud of. And we welcome people, come out tomorrow, dress warm, be safe, and experience one of the most beautiful things that happens every year in New York City.  

 

The Macy's Thanksgiving Day Parade is back. It's something to be proud of. It's something to be excited about. And I’ve got to tell you, Macy's, once again, after eight years of working with you guys, you are supreme professionals. You do everything the right way and you love this city. And I’ve got to tell you, that means so much to all of us. So, I want to thank you on behalf of 8.8 million New Yorkers. Jeff, to you and everybody at Macy's, once again, job well done. Thank you for all you do for us. It's my great pleasure to introduce the CEO of Macy's Jeff Gennette. 

 

CEO Jeffrey Gennette, Macy’s: Thank you, sir. Alright. Thank you, Mayor. And thanks for everybody for being here today. So, on behalf of everybody, the 100,000 strong at Macy's, all of our colleagues both here in New York City and across the country. Welcome to balloon inflation. And this is the 95th Annual Macy's Thanksgiving Day Parade. So, we are hours away from the start of this world spectacle that we do every year. And this is the official kickoff of the holiday season. So, we're thrilled to bring back this cherished tradition from here on the Upper West Side, going all the way to our flagship at 34th Street. This is in very close partnership with our partners in New York City, as well as the State, and all the agencies. And it gives us the opportunity to bring magic to New York, as well as the country. 

 

So, in this partnership we share values. We share values of community and celebrating the milestones and traditions that we serve. So, as this is the end of your term, Mayor, we've worked together closely over the past eight years. And I would say the last two have been quite remarkable, in that using the opportunity on the July 4th, and here on the parade, no matter what was going on, to make it work. And I thank you for your partnership on that. We brought a New York a lot of joy. And especially this year, as we re-entry, and have recovery, and revitalization of this beloved city that we love to be a part of. I’d also like to thank the Commissioner. And Commissioner Shea, I mean, your amazing team that keeps this community safe, we love working with you as part of the Macy's group. And so, thank you for your leadership on that. I’d love to be able to also talk about the thousands of city colleagues in New York City that help us pull off this parade, as well as the amazing colleagues at Macy's. It wouldn't be without – we couldn't do it without them.  

 

So, let me tell you a little bit about this year's parade. It's going to be pretty magical. So, you're going to see, if you walk this, a lot of our new character balloons. So, we have the Funko Pop, which is – think about Baby Yoda from Mandalorian, so that's like at the very front. Go take a look at that. We have amazing new floats. So, we have the Disney Cruise Line, as well as Kalahari, with all the Disney characters are going to be on that. Great entertainers are lined up. 

So, Carrie Underwood is the headline. We've got John Batiste, for those of who know him. He basically just got nine – or, 11 Grammy nominations. He's going to be with us. We're going to have Kelly Rowland, Foreigner, just packed with entertainment. We'll have 16 character balloons. We have 36 novelty balloons. We've got our new one called Tiptoe. It's going be the first walking balloon puppet. It's 18 feet tall, get ready for that. And that's going to be visiting the crowd all the way through the route. We have 28 floats, 1,200 cheerleaders and dancers, 10 marching bands, 800 clowns. And as well, for the fifth year in a row, we're going to have the Macy's singing Christmas tree, which is packed with amazing Macy's colleagues from across the country, singing their hearts out for America. And then, of course, it wouldn't be complete without Santa Claus – the only real Santa Claus – and he'll be here on 34th Street to usher in the holiday season at the end of the parade.  

 

So, as we all go to sleep tonight, this amazing parade team that represents Macy's is going to pull all this together and we're going to be ready for kickoff on a beautiful day at nine o'clock tomorrow morning. So, happy Thanksgiving on the behalf of Macy's, to everybody here. And, Mayor, I'm turning it back to you.  

 

Mayor: Thank you so much, Jeff. And, Jeff, I want to just tell you, as you said, the 4th of July, especially in 2020, when this city was going through so much, Macy's did so much to give people hope and spirit. And you guys have just been absolutely fantastic partners. So, a lot of work's going to happen between now and tomorrow morning. And a lot of work is going to be done by all the City agencies, but I want to highlight and thank the men and women of the NYPD who are keeping us safe. I want to emphasize, there are no – no specific and incredible threats against this parade and against New York City. That's the very, very good news, very important news. But to hear about all the extraordinary preparations that are being made and the work that's being done to keep everyone safe, my pleasure to introduce our Police Commissioner Dermot Shea. 

 

Police Commissioner Dermot Shea: Evening, everyone. What a difference a year makes. Here we are, the start of my favorite time of year in New York City. You can feel the energy. To Macy's – Jeff, can't thank you enough for what you do, everything you do. Macy's as an institution near and dear to the hearts of all New Yorkers. And this parade and what it represents, it's just exciting to be out here. You are going to have thousands and thousands of men and women in blue. I see Phil Rivera, the two-star Chief in charge of Manhattan North over there. Steve Hughes, Juanita Holmes, Martine Materasso, all working throughout the night and through tomorrow to make sure that you can have the greatest possible day tomorrow. All you have to do at this point is two things – dress warm and get out here early tomorrow. Bring the energy. We're going to have a great day. I'm going to bring Martine Materasso, the Chief of Counterterrorism, and Tommy Galati over here to go into specifics. You're going to see it all. There's going to be things that you see, quite visible. You're going to see men and women in uniform, walking around on the parade route with the parades. You'll see them as you do. If you turn around and look up, you see officers on rooftops. There are things that you're not going to see as well. What New Yorkers should know is, as the Mayor said, there are no credible and specific threats against this parade. That's the good news, but we never rest on our laurels and we are going to have thousands of offices out there to make sure that you don't have to think about security. So, dress warm, some hot chocolate, don't spike it with anything. The floats are amazing. And we're looking forward to Santa coming down at Macy's on 34th Street tomorrow. Martine. 

 

Chief of Counterterrorism Martine Materasso, NYPD: Thank you. Thank you, Commissioner. So, as already was stated, the Counterterrorism Bureau will be out here in full force, ensuring that Santa and Mrs. Claus get down 34th Street. We will be deploying a full cadre of our assets, which is part of our multi-layer security overlay. You're going to see hundreds of cement blocks, sand trucks, blocker vehicles. You'll see our explosive detection canines. You'll see our heavy weapons and observation teams. You'll see our bomb squad response teams, as well as radiological and chemical sensors. And we have over 300 extra cameras deployed along the parade route. So, as already stated, we encourage all to come out and enjoy this year's 95th Macy's Thanksgiving Day Parade.  

 

Mayor: Amen. Well said. Thank you very much.

 

39 Days and Counting _ Happy Thanksgiving

 

You would figure that with 49, I mean 39 day left in office that these pesky reporters would give me some related questions to an outgoing mayor who is running for governor, but these reporters don't know what to ask me. Today it was much of the same with a question about the Lieutenant Governor and his bundler. Was that meant to say would I take the position of Lieutenant Governor if it is offered to me?

I can't even guess where my friendly reporters are going for Thanksgiving, I say New England, and the answer is Florida. I say Massachusetts, and the answer is Connecticut. Then I am asked what I am doing for Thanksgiving. Well Charlene and I use to go to New England, but we are spending our last Thanksgiving in office at Gracie Mansion. Then they ask me about the Blood Center rezoning. It was voted by the city council, and that Land Use Chair Salamanca went against the area councilman. No wonder there are so many people going for Council Speaker. On to the MAcu's Thanksgiving Day Parade.

Governor Kathy Hochul Comes to Coop-City to Give Out Turkeys

 

It was a cool November day at the parade ground by Drieser Loop in Coop-City where with the help of the National Guard hundreds of turkeys and bags of fruits and vegetables were set up so residents of Coop-City could have a happy Thanksgiving. 

The local elected officials State Senator Jamaal Bailey, Councilman Kevin Riley, District Leader Lim Payne, and Assemblyman Michael Benedetto greeted the governor, and brought her to the platform to speak. State Senator Bailey spoke about the food insecurity problem in the Bronx, city, and state. and introduced Governor Hochul. 

Governor Hochul requested that anyone who has not been vaccinated do so as soon as possible, that people should have already gotten their second dose, and those who received their second dose over six months ago get their third dose which is now available to everyone over eighteen. She said she hopes to come back next year to this event to see that people will not have to wear masks anymore.  Assemblyman Benedetto's speech sounded like an early campaign speech, praising the governor, but two opponents have already announced that they will be running for the 82nd Assembly seat next year. One is from Throggs Neck, and the other is from Coop-City. Councilman Riley spoke last, and his speech was "Let's not waste any time, and get the food to the people". Missing from this event were Assembly Speaker Carl Heastie, and Bronx Borough President Ruben Diaz Jr. 

Two hundred turkeys are lined up on tables to be given out to residents of Coop-City.

After the turkeys were tables of fresh fruits and vegetables for the residents of Coop-City, with the National Guard ready to help give the produce out.

Governor Kathy Hochul arrives and waves to the people on line.

Senator Bailey speaks for a few minutes, before introducing Governor Kathy Hochul.

Governor Kathy Hochul spoke for a few minutes about why being vaccinated is so important, food insecurity, and what a great place the Bronx is. 

Governor Hochul went to the people to give them a turkey, as several members of her security team looked on carefully.

I asked Senator Bailey, who is also the Bronx democratic Party Leader, if there would be an endorsement of Governor Hochul for reelection, and got the usual "I can't say anything to that right now".

A group photo of the local Bronx elected officials representing the Northeast Bronx. (L - R) 82nd A.D. District Leader Jim Payne, Assemblyman Michael Benedetto, Governor Kathy Hochul, State Senator Jamaal Bailey, Councilman Kevin Riley. 

Permits Filed For 43-42 43rd Avenue In Sunnyside, Queens - See the Editor's Note

 

43-42 43rd Avenue in Sunnyside, Queens via Google Maps

Permits have been filed for an eight-story mixed-use building with affordable housing at 43-42 43rd Avenue in Sunnyside, Queens. Located at the intersection of Queens Boulevard and 43rd Avenue, the corner lot is a short walk to the 46th Street-Bliss Street subway station, serviced by the 7 train. John J. Ciafone of City View Construction Corp. is listed as the owner behind the applications.

The proposed 79-foot-tall development will yield 73,762 square feet, with 67,098 square feet designated for residential space and 6,664 square feet for commercial space. The building will have 99 residences, most likely rentals based on the average unit scope of 677 square feet. The concrete-based structure will also have two cellar levels, a 31-foot-long rear yard, and 138 enclosed parking spaces.

Gerald Caliendo Architects is listed as the architect of record.

Demolition permits will likely not be needed as the lot is vacant. An estimated completion date has not been announced.

EDITOR'S NOTE:

You may be wondering why we put up a Queens development, but one has to read between the lines to see the real facts. 

While this is the corner of Queens Boulevard directly across the street just out of the photo is the elevated Queens Boulevard #7 subway line. The subway stop is only two blocks away, so residents will hear the screeching of the subway brakes as the subway comes into the station. The building will probably overshadow the smaller six story building on 43rd Street, and tower over the four story building on Queens Boulevard. 

This is what you can expect in the East Bronx in the coming years. Larger open areas will be developed into huge apartment buildings, and then the one or two family homes are next that have large yards, driveways with outside garages, and corner properties. 

Lincoln Hospital Gives out 500 Turkeys and 500 Bags of Food

 

Staff at Lincoln Hospital gave out five-hundred turkeys, and five-hundred bags of food for the Thanksgiving holiday to local area residents.

A Lincoln Hospital staffer puts up the last of the five-hundred bag of food to be given out one hour later with the five-hundred turkeys.

A few other staffers from Lincoln Hospital stand in front of the five-hundred turkeys that will be given out to local area residents for Thanksgiving.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - NOVEMBER 23, 2021

 

76,451 Vaccine Doses Administered Over Last 24 Hours  

27 COVID-19 Deaths Statewide Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.  

"We are two days away from gathering with loved ones, many of us for the first time since the onset of the pandemic - I want to urge New Yorkers to do everything they can to ensure they stay safe this holiday season," Governor Hochul said. "The vaccine is the best tool we have to prevent the spread of COVID-19. If you haven't gotten yours yet, go out and get it today, and if you have and you're due for your booster, get yours as soon as possible. Vaccines are safe, effective, and readily available throughout the state."

Today's data is summarized briefly below:

• Test Results Reported - 118,953
• Total Positive - 5,336 
• Percent Positive - 4.49%
• 7-Day Average Percent Positive - 3.81% 
• Patient Hospitalization - 2,515 (+154)
• Patients Newly Admitted - 372 
• Patients in ICU - 474 (+4) 
• Patients in ICU with Intubation - 235 (-1) 
• Total Discharges - 213,583 (+209) 
• New deaths reported by healthcare facilities through HERDS - 27 
• Total deaths reported by healthcare facilities through HERDS - 46,283

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only. 

• Total deaths reported to and compiled by the CDC - 58,948 

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.

• Total vaccine doses administered - 29,226,424 
• Total vaccine doses administered over past 24 hours - 76,451 
• Total vaccine doses administered over past 7 days - 694,257 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 85.4%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 78.0%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 90.1% 
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 80.4% 
• Percent of all New Yorkers with at least one vaccine dose - 73.6% 
• Percent of all New Yorkers with completed vaccine series - 66.1% 
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 77.2% 
• Percent of all New Yorkers with completed vaccine series (CDC) - 68.1%