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QUEENS, N.Y. –
Daniel E. Russo was sentenced to 60 months in prison by United States District Judge Dora L. Irizarry for conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, and nine counts of filing false personal and corporate tax returns.
Russo pleaded guilty in February 2023.
The sentence was announced by Breon Peace, United States Attorney for the Eastern District of New York, David A. Hubbert, Deputy Assistant Attorney General of the Justice Department’s Tax Division, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI).
“From pharmacist to pill pusher, Daniel Russo betrayed his years of medical training to pocket dirty money in return for illegally selling enormous amounts of oxycodone, which was invariably later sold on the streets,” stated United States Attorney Peace. “Today’s sentence sends a message to all would-be drug dealers, especially healthcare professionals, that the illegal distribution of drugs will be punished.”
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, which worked closely with the IRS-CI New York and the US Attorney’s Office Eastern District of New York.
Russo owned and operated Russo’s Pharmacy in Far Rockaway, Queens. Between March 2011 and June 2014, Russo conspired with others, including medical professionals and employees, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash.
Russo accepted payment mostly in cash for the prescriptions. Russo then hid the proceeds from the scheme and filed false corporate income tax returns for his pharmacy for the years 2013 through 2016, omitting the illegal proceeds. Russo also filed false individual income tax returns for the years 2012 through 2016. In total, Russo failed to report over $1 million in earnings, much of it generated from his oxycodone distribution scheme.
Russo will serve three years of supervised release immediately after his release from prison. He paid over $400,000 in restitution prior to the sentencing.
Over a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.
The investigation and prosecution meticulously brought to justice Russo’s tax fraud and his role in a major drug trafficking conspiracy. “Russo distributed highly addictive drugs to the community he served, completely disregarding his sworn code of ethics as a pharmacist. And while using his position to commit criminal acts, he then failed to report and pay taxes on the proceeds of his illicit sales.
It is with strong law enforcement partnerships that we were able to ensure Russo is now facing justice for his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.
The case was led by the DEA’s Long Island Tactical Diversion Squad, com
Russo’s sentence sends a strong message to those who would engage in the illegal distribution of prescription medications and tax fraud.
Key Facts
- State: New York
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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