Massachusetts exec busted for allegedly cheating the IRS, getting paid under the table

A former local exec is accused of cheating the IRS by getting paid more than $1.6 million in compensation and fringe benefits under the table.

Marlboro man Stephen Hochberg, 77 — who was an accounting and real estate executive in Sudbury — was recently charged by the feds. He has agreed to plead guilty to perpetrating the multi-year scheme.

Hochberg, who was previously convicted of wire fraud and securities fraud, is also accused of lying to the U.S. Attorney’s Office about his income to avoid paying restitution he owed to victims of the earlier fraud scheme.

According to the feds, Hochberg and his business partner Charles Katz agreed as early as 2014 to cheat the IRS.

They allegedly agreed that Hochberg — who was the director of corporate services at Katz’s accounting firm and the COO at Katz’s real estate firm — would be paid significant compensation off the books so that Hochberg would have tax-free income.

Also, this scheme would mean that Katz’s firms – CD Katz LLC and Gebsco Realty Corporation – would have lower employment taxes.

Over time, Katz allegedly paid Hochberg’s family, provided rent-free housing to Hochberg’s ex-wife, paid college tuition for his children, and paid personal expenses that Hochberg and his ex-wife charged on corporate credit cards.

Katz allegedly paid Hochberg at least $1,668,487 in unreported income, and avoided taxes of at least $835,105.

In 2008, Hochberg was convicted of eight counts of wire fraud and nine counts of securities fraud. He was sentenced to more than five years in federal prison, and he was ordered to pay almost $1.8 million to his victims.

In addition to his and Katz’s scheme, he allegedly lied to the U.S. Attorney’s Office about his income from Katz’s firms and obstructed the collection of restitution he owed victims.

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Hochberg was charged with conspiracy to defraud the United States and with obstruction of justice.

He will make an initial appearance in federal court in Boston on Dec. 11.

Katz was charged and agreed to plead guilty in October. The court accepted his plea and scheduled a sentencing hearing for Feb. 2.

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