A Hull, Massachusetts man has pleaded guilty in relation to a long-running scheme to defraud the company which he served as the Chief Financial Officer. 68-year-old Robert A. Saltzberg pleaded guilty to five counts of filing false tax returns and one count of mail fraud. Saltzberg is now scheduled to be sentenced on June 5, 2019.
From 1998 through 2014, Saltzberg served as the CFO of a precision metal fabrication company in Franklin, Massachusetts. He was a 50% co-owner. He was responsible for day-to-day accounting and finance operations. He also had complete control over the company’s financial activities.
During this period, Saltzberg used his position to embezzle more than $1 million from the company. He did so by writing checks paying company funds to himself or to pay personal expenses. He then fraudulently recorded the expenditures as business expenses on the company’s books.
The company’s tax preparer unknowingly relied upon false information from Saltzberg to prepare the corporate tax returns. Saltzberg ultimately caused false expenses to be reported on corporate returns. This resulted in lower reported company net income.
On the charge of mail fraud, Saltzberg will face a sentence no greater than 20 years in prison and three years of supervised release. For the charge of filing false tax returns, Saltzberg will face a sentence no greater than three years in prison and one year of supervised release. Additional details have been made available here.