A former executive from Marlborough, Stephen L. Hochberg, has been charged with conspiracy to defraud the United States and obstruction of justice in connection with a scheme to avoid paying taxes on more than $1.6 million in compensation and fringe benefits. Hochberg, 77, has agreed to plead guilty and is scheduled for an initial appearance in federal court in Boston on December 11, 2025.
According to charging documents, Hochberg worked as Director of Corporate Services at Charles D. Katz’s accounting firm and as Chief Operating Officer at Katz’s real estate firm. Authorities allege that beginning as early as 2014, Hochberg and Katz arranged for Hochberg to receive significant compensation off the books. This arrangement allegedly allowed Hochberg to have tax-free income while Katz’s companies—CD Katz LLC and Gebsco Realty Corporation—paid lower employment taxes.
The government claims that over time, Katz paid Hochberg’s family members, provided rent-free housing for Hochberg’s ex-wife, covered college tuition for his children, and paid personal expenses charged by Hochberg and his ex-wife on corporate credit cards. In total, it is alleged that Katz paid at least $1,668,487 in unreported income to Hochberg and avoided at least $835,105 in taxes.
Hochberg was previously convicted in 2008 of eight counts of wire fraud and nine counts of securities fraud. He was sentenced to more than five years in federal prison and ordered to pay $1,791,500 in restitution to victims. Prosecutors allege that during the recent scheme with Katz, Hochberg lied about his income from Katz’s firms to the U.S. Attorney’s Office in order to obstruct efforts to collect restitution owed from his earlier conviction.
Katz was charged separately and agreed to plead guilty in October 2025; his sentencing hearing is set for February 2, 2026.
If convicted of conspiracy to defraud the United States, Hochberg faces up to five years in prison, three years of supervised release, and a fine of up to $250,000. The obstruction of justice charge carries a maximum sentence of ten years in prison along with supervised release terms, fines up to $250,000, restitution obligations, and forfeiture requirements. Sentencing will be determined by a federal district court judge according to U.S. Sentencing Guidelines.
The announcement was made by United States Attorney Leah B. Foley; Thomas Demeo of IRS Criminal Investigations; and Ted E. Docks of the FBI Boston Division. Assistant U.S. Attorney Kriss Basil is prosecuting the case.
Authorities remind that all details contained within the charging document are allegations and that “the defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.”