⏱ 3 min read
Charles D. Katz, a 64-year-old CPA from Sudbury, paid an executive $1.6 million in under-the-table compensation and fringe benefits, while also making a fraudulent application for $179,000 in pandemic relief. This scheme, which took place over several years, allowed Katz to avoid paying taxes and enabled the executive, Stephen Hochberg, to receive tax-free income. Katz’s firms, CD Katz LLC and Gebsco Realty Corporation, also benefited from lower employment taxes. The scheme was uncovered in Boston federal court, where Katz was sentenced to two months in prison and two years of supervised release.
Katz and Hochberg’s tax scheme was intricate, involving the payment of Hochberg’s personal expenses, rent-free housing for his ex-wife, and college tuition for his children. All told, Katz paid Hochberg at least $1,668,487 in unreported income and avoided taxes of at least $835,105. The scheme also allowed Hochberg to avoid paying court-ordered restitution to victims of his prior crimes.
In 2020, Katz and Hochberg applied for Paycheck Protection Program loans for both of Katz’s firms, obtaining $179,900. Katz used part of this money to fund the under-the-table compensation he paid Hochberg. As part of his sentence, Katz agreed to pay $333,697.40 in restitution to Hochberg’s prior victims, in addition to restitution to the IRS, Massachusetts Department of Revenue, and Small Business Administration.
Katz pleaded guilty to conspiracy to defraud the United States and two counts of loan fraud in November 2025. His sentence, handed down by U.S. District Court Judge Leo T. Sorokin, reflects the severity of his crimes. The case highlights the importance of transparency and honesty in financial dealings, particularly when it comes to tax payments and pandemic relief applications.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Massachusetts
- Location: MA
- Source: DOJ Press Release
