Marlborough Man Ordered to Pay $2.8M in Restitution to IRS
A Marlborough man has been ordered to pay $2.8 million in restitution to the Internal Revenue Service (IRS) after pleading guilty to conspiracy to defraud the US and obstruction of justice. According to a statement, the man, Hochberg, and his business partner, Charles Katz, agreed to “cheat the IRS” in 2014 by arranging for Hochberg to receive off-the-books payments that allowed him to avoid income taxes and Katz to owe less employment taxes.
The pair’s scheme involved Katz paying Hochberg over $1.6 million through a series of unreported benefits, including payments to his family, free housing for his ex-wife, college tuition for his children, and personal expenses charged on corporate credit cards. As a result, Katz avoided paying at least $835,105 in taxes for his businesses, CD Katz LLC and Gebsco Realty Corporation.
Hochberg has a history of fraudulent activities, having been convicted in 2008 of eight counts of wire fraud and nine counts of securities fraud. He was sentenced to over five years in federal prison and ordered to pay nearly $1.8 million in restitution to his victims. By lying about his income from Katz’s firms, prosecutors said, he avoided paying those funds.
In a related case, Katz pleaded guilty in 2025 to conspiracy to defraud the US and two counts of loan fraud, including submitting a fraudulent application for more than $179,000 in pandemic relief. He is scheduled to be sentenced on April 29.
The case highlights the importance of tax compliance and the consequences of attempting to cheat the system. The IRS and law enforcement agencies are cracking down on tax evasion and other financial crimes, and those who engage in such activities can expect to face significant penalties, including fines, restitution, and imprisonment.
For more information on this case, contact Lila Hempel-Edgers at lila.hempeledgers@globe.com. You can also follow her on social media at X @hempeledgers and Instagram @lila_hempel_edgers.
Key Facts:
- Hochberg ordered to pay $2.8M in restitution to IRS
- Pleaded guilty to conspiracy to defraud the US and obstruction of justice
- Business partner, Charles Katz, pleaded guilty to conspiracy to defraud the US and loan fraud
- Katz scheduled to be sentenced on April 29
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