Marlborough Man Paid $1.6M Under The Table Facing Charges: USAO

MARLBOROUGH, MA — A former accounting and real estate executive was charged and agreed to plead guilty to a multi-year scheme to receive more than $1.6 million in cash under the table.

Stephen L. Hochberg, 77, of Marlborough, was charged with conspiracy to defraud the U.S. and obstruction of justice, according to the U.S. Attorney's Office. Hochberg and his boss, Charles D. Katz, the owner of accounting firm CD Katz LLC and real estate firm Gebsco Realty Corporation, agreed to cheat the IRS, according to charging documents.

Related: Sudbury Business Owner Pleaded Guilty To Paying Employee $1.6M Under The Table, USAO

Hochberg, who served as the Director of Corporate Services at the accounting firm and the CEO of the real estate firm, was paid off the books. This was so Hochberg would have tax-free income, and Katz would have lower employment taxes.

The fraudulent deal led Katz to pay Hochberg at least $1,668,487 in unreported income, which meant Katz avoided at least $835,105 in taxes, according to the USAO.

Katz also did this by paying Hochberg's family, providing rent-free housing to Hochberg's ex-wife, paying college tuition and other personal expenses. He also made a fraudulent application for more than $179,000 in pandemic relief, according to the USAO.

Hochberg will appear in federal court in Boston on Dec. 11.

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