He was indicted on five felonies that carried a maximum prison sentence of 25 years each.

Last year, he pleaded guilty to evading just $50,000 in taxes. In addition to the $1 million fine, he agreed to remain under probation for five years and signed a document giving the state authority to collect an additional $4 million in the future.

On Wednesday morning, Mr. Freidman spoke in a low voice as he apologized for his crimes in a mostly empty courtroom. His lawyers have said that the emergence of ride-hailing services such as Uber and Lyft had devastated Mr. Freidman’s business and forced him into wrongdoing.

Mr. Freidman was once worth hundreds of millions of dollars, but he is now facing judgments on $400 million in debts, according to a memo filed as part of the sentencing. Once a lawyer, he also has been disbarred and prohibited from managing medallions. He is currently working as an independent sales representative, according to the memo.

“This case has brought him to his knees,” Mr. Freidman’s lawyer, Patrick J. Egan, said in court.

The sentencing in Albany County Court had been delayed three times because Mr. Freidman had not paid the full restitution, according to prosecutors. The state filed a memo earlier this month accusing Mr. Freidman of violating his agreement and overstating his cooperation in the case against Mr. Cohen; that memo said prosecutors would push for jail time if Mr. Freidman did not pay by this week.

Judge Peter A. Lynch applauded Mr. Freidman for paying the fine and cooperating with prosecutors. “To be quite blunt, given the crumbling of your business empire, your ability to pay the restitution is spectacular,” he said.

Prosecutors also disclosed in court papers that Mr. Freidman has been helping the attorney general’s office with its inquiry into the lending practices in the taxi medallion industry. Mr. Freidman has met with investigators three times about that inquiry, which was launched in response to a New York Times series.

For years, Mr. Cohen had entrusted Mr. Freidman with his 32 taxi medallions. Mr. Freidman paid Mr. Cohen a monthly fee for the medallions and, in return, he got to operate the cabs and earn revenue from them.