Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A former executive from Marlborough has pleaded guilty in federal court to charges of conspiracy to defraud the Internal Revenue Service and obstruction of justice. Stephen L. Hochberg, 77, admitted to participating in a scheme that allowed him to receive more than $1.6 million in compensation and fringe benefits without reporting the income or paying taxes on it.
According to federal prosecutors, Hochberg worked as Director of Corporate Services at CD Katz LLC and as Chief Operating Officer at Gebsco Realty Corporation, both operated by Charles D. Katz. Starting as early as 2014, Hochberg and Katz arranged for Hochberg to be paid off the books so that he would have tax-free income and the companies would reduce their employment tax liabilities. Compensation included payments to Hochberg’s family members, rent-free housing for his ex-wife, tuition payments for his children, and personal expenses charged on corporate credit cards.
In total, authorities said Katz paid Hochberg at least $1,668,487 in unreported income and avoided at least $835,105 in taxes.
Hochberg also lied about his income from these firms when questioned by the U.S. Attorney’s Office in an effort to avoid paying restitution owed to victims from a previous fraud conviction. In 2008, he was convicted of wire fraud and securities fraud and ordered to pay nearly $1.8 million in restitution after serving more than five years in prison.
Katz was charged separately 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 carries a maximum sentence of five years in prison along with supervised release and fines; obstruction of justice carries up to ten years’ imprisonment plus additional penalties. Sentences will be determined by a federal judge according to applicable guidelines.
“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.”
