A former executive from Marlborough has pleaded guilty in federal court to conspiracy to defraud the Internal Revenue Service (IRS) and obstruction of justice. Stephen L. Hochberg, 77, admitted to participating in a scheme that allowed him to receive over $1.6 million in untaxed compensation and fringe benefits while misleading authorities about his income.
Hochberg served as Director of Corporate Services at an accounting firm and Chief Operating Officer at a real estate firm owned by Charles D. Katz. According to court documents, beginning as early as 2014, Hochberg and Katz agreed that Hochberg would be paid significant amounts off the books. This arrangement resulted in tax-free income for Hochberg and reduced employment taxes for Katz’s firms, CD Katz LLC and Gebsco Realty Corporation.
Katz compensated Hochberg through various means, including payments to family members, providing rent-free housing for Hochberg’s ex-wife, covering college tuition for his children, and paying personal expenses charged on corporate credit cards. The total unreported income reached at least $1,668,487, with avoided taxes amounting to at least $835,105.
In addition to the tax scheme, Hochberg misled the U.S. Attorney’s Office about his earnings from Katz’s companies to obstruct efforts to collect restitution owed from a previous conviction. In 2008, Hochberg was found guilty of multiple counts of wire fraud and securities fraud and was ordered to pay $1,791,500 in restitution after serving more than five years in prison.
Katz was also charged in connection with the scheme and agreed to plead guilty in October 2025. His sentencing is scheduled for February 2, 2026.
Sentencing for Hochberg is set for April 6, 2026. The charge of conspiracy to defraud the United States carries a maximum sentence of five years in prison along with supervised release and fines; obstruction of justice carries up to ten years in prison plus additional penalties.
“United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement.” “Assistant U.S. Attorney Carol Head, Chief of the Asset Recovery Unit is prosecuting the case.”