ALBANY, NEW YORK – Ehab Kodsi, age 56, of Watervliet, New York, was sentenced today to pay restitution in the amount of $245,212, and to pay an additional $25,000 fine, after admitting to filing a false tax return and deliberately underreporting his income from 2015 to 2018.
The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).
Senior United States District Judge Lawrence E. Kahn ordered Kodsi to pay $245,212 to the IRS, and Kodsi has already made this payment. Judge Kahn also imposed 1 year of probation, to include 100 hours of community service.
Kodsi is the sole owner of a pain management clinic located in Queensbury, New York. He is also a partner in a real estate company that owns several properties, including the office building in Queensbury that houses his pain management clinic.
In pleading guilty, Kodsi admitted that from 2015 to 2018, he underreported his businesses’ revenues to the IRS, and improperly deducted personal and business expenses. As a result, Kodsi failed to report a total of $822,069 in income and failed to pay $245,212 in taxes.
Kodsi did not report income received from third parties reimbursing services provided by his pain management clinic, deducted personal expenses as business expenses, deducted the same business expense multiple times, and overstated business expenses related to his and his family’s use of vehicles.
This case was investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Michael Barnett.