Peter Nordberg, Tax Evasion Scheme, California 2024

Former CEO Peter Nordberg, 62, of Alameda, California, was sentenced Wednesday to 12 months and one day in federal prison for orchestrating a tax evasion scheme that cost the U.S. Treasury nearly $275,000. The sentence, handed down in Salt Lake City, Utah, marks the end of a years-long federal investigation into the executive’s offshore financial maneuvers.

Nordberg, once the top executive at Max International—a Salt Lake City-based company that sells nutritional supplements through a network of distributors—pleaded guilty in September 2017. Court records show he rerouted bonus income meant for him into a nominee entity he secretly controlled, using the funds to cover personal expenses while hiding the arrangement from his tax preparer and the IRS.

As CEO, Nordberg earned a salary and commission based on company sales. But rather than report his full earnings, he funneled bonus payments into a shell account, allowing him to file false tax returns that drastically underreported his income. The deception was uncovered during a forensic audit that traced the flow of money from Max International to the hidden entity.

The IRS Criminal Investigation unit spearheaded the probe, unearthing evidence of deliberate concealment and financial falsification. Prosecutors said Nordberg’s actions weren’t just sloppy accounting—they were calculated moves to dodge federal tax obligations, a crime that carries stiff penalties under U.S. law.

U.S. District Court Judge Dee Benson also ordered Nordberg to serve one year of supervised release and pay $354,770 in restitution to the United States Treasury. The additional amount covers penalties, interest, and investigative costs tied to the case, exceeding the initial tax loss of $275,000.

Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah commended the work of IRS agents and prosecutors, including Tax Division Trial Attorney Matthew Hoffman and Assistant U.S. Attorney Ruth Hackford-Peer. The case underscores federal efforts to target high-income individuals who exploit corporate structures to evade tax responsibilities.