Franklin manufacturing CFO gets two years in prison for fraud
A former CFO of a Franklin manufacturing company will spend two years in federal prison and must pay more than $1.7 million in restitution to victims and the government for his role in a scheme to defraud the company.
Robert Saltzberg, 69, the former finance chief of precision metal manufacturer Resh Inc., was sentenced in a Boston federal court Wednesday to the prison term and three years of supervised release.
According to the U.S. Attorney’s Office for the District of Massachusetts, Saltzberg was a 50% co-owner of the precision metal manufacturing company and used his position as the company’s financial officer to write checks to himself and his creditors to pay personal expenses. Those transactions were fraudulently recorded in the company’s books, prosecutors said.
That fraud caused the company’s tax preparer to unknowingly file false tax return information, resulting in a lower reported company net income.
Because the company is an S-Corporation, the understated net income understated Saltzberg’s personal income on his tax returns, allowing Satlzberg to avoid paying more than $300,000 in federal taxes.
He is ordered to pay $1.36 million to the company and $342,000 to the federal government in unpaid taxes.
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