Former Franklin manufacturing CFO pleads guilty to embezzling $800K
The former chief financial officer of a Franklin precision metal fabrication company has pleaded guilty in federal court to defrauding the company and embezzling more than $800,000.
Robert Saltzberg, 68, admitted guilty to one count of mail fraud and five counts of filing false tax returns.
The U.S. Department of Justice for the District of Massachusetts does not name the Franklin company, but state corporation records show that Satlzberg was the registered agent for Franklin metal fabricator Resh, Inc. until 2016. He was removed as a director with the company in 2015, according to corporation filings with the Massachusetts Secretary of the Commonwealth.
According to prosecutors, Saltzberg had from 1998 through 2014 control over the company’s financial activities and wrote checks paying company funds to himself or for his personal expenses. He would then fraudulently record the expenditures as business expenses on the company’s books.
The company’s tax preparer unwittingly used that false information from Saltzberg to prepare the company’s tax returns, causing false expenses to be reported on the corporate tax returns and resulting in a lower reported company net income between 2005 and 2014.
According to prosecutors, the firm is an S-Corporation and its net income passes through to the shareholders. That understated net income subsequently understated Saltzberg's own personal income on his tax returns. As a result of his fraudulent activities, Satlzberg avoided paying more than $300,000 in federal taxes, prosecutors said.
Saltzberg faces up to 23 years in prison, four years of probation and fines of up to $500,000.
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