Stephen L. Hochberg, a former accounting and real estate executive from Marlborough, was sentenced on April 5 in federal court in Boston to two years in prison for conspiring to defraud the Internal Revenue Service and obstructing justice.
The case highlights efforts by federal authorities to address tax fraud schemes that undermine government revenue and the restitution owed to victims of earlier financial crimes.
According to court documents, Hochberg, age 78, received more than $1.6 million in compensation and fringe benefits off the books while working as Director of Corporate Services at CD Katz LLC and Chief Operating Officer at Gebsco Realty Corporation. The scheme allowed him tax-free income while reducing employment taxes owed by the companies. U.S. District Court Judge Leo T. Sorokin also ordered Hochberg to pay $2,888,288 in restitution to the IRS, the Commonwealth of Massachusetts, and victims of his previous securities and wire fraud convictions.
Prosecutors said that starting as early as 2014, Hochberg conspired with Charles D. Katz—owner of both firms—to conceal payments through various means including paying family members directly, providing rent-free housing for Hochberg’s ex-wife, covering college tuition for his children, and paying personal expenses via corporate credit cards. In total, Katz paid at least $1,668,487 in unreported income resulting in avoided taxes exceeding $835,000.
Hochberg had previously been convicted in 2008 on multiple counts of wire fraud and securities fraud related to an earlier scheme for which he was sentenced to over five years’ imprisonment and ordered to pay nearly $1.8 million in restitution. During this latest investigation he lied about his income from Katz’s businesses when communicating with federal authorities tasked with collecting restitution from his prior offenses.
Katz has also been charged; he agreed to plead guilty in October 2025 with sentencing scheduled for April 29.
United States Attorney Leah B. Foley announced the sentence along with officials from Internal Revenue Service Criminal Investigations Boston Division and the Federal Bureau of Investigation Boston Division.
