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

SUDBURY, MA — A Sudbury business owner has agreed to plead guilty to paying an employee more than $1.6 million under the table, according to the U.S. Attorney's Office.

Charles D. Katz, 63, the owner of accounting firm CD Katz LLC and real estate firm Gebsco Realty Corporation, was charged with conspiracy to defraud the U.S. and two counts of loan fraud.

Katz and an employee, who served as the Director of Corporate Services at his accounting firm and the CEO of his real estate firm, agreed that he would pay the employee off the books. This was so the employee would have tax-free income and that Katz would have lower employment taxes.

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

Katz also did this by paying the employee's family, providing rent-free housing to the employee'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.

Katz is scheduled to be sentenced on Feb. 2.

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